National Press Release

SAN FRANCISCO and SEOUL, South Korea, June 16 /PRNewswire/ -- In a highly unusual move, the U.S. International Trade Commission (ITC) announced late last week that it would extend by thirty (30) days the deadline for determining whether to institute a Section 337 investigation in response to a complaint filed by Flexsys America L.P. concerning certain rubber antidegradants. Citing "exceptional circumstances," the ITC stated that it "will utilize the additional time to consider the possible legal impact of prior litigation involving the asserted patents." The ITC's decision is now expected to be issued on or before July 11, 2008.

Prior to the announcement, the companies against whom Flexsys brought its complaint, Korea Kumho Petrochemical Co., Ltd., Kumho Tire U.S.A., Inc. and Kumho Tire USA Co., Inc. (Kumho respondents) and Sinorgchem Co. had both urged the ITC, in separate letters, that the proposed investigation should not be instituted because the complaint was legally defective in light of prior litigation concerning the same patents.

Since 1975, the ITC has instituted 651 Section 337 investigations. Research has revealed only three (3) prior occasions in which the ITC has extended its institution decision deadline based on "exceptional circumstances," none more recently than 1999.

In its new ITC Complaint, Flexsys re-asserts infringement of its U.S. Patent No. 5,453,541 ("'541 patent") and U.S. Patent No. 5,608,111 ("'111 patent"), pertaining to processes for producing 4-ADPA and 6-PPD. With Flexsys' agreement, the U.S. District Court for the Northern District of Ohio ordered Flexsys on November 8, 2006 to never again file a patent infringement action against KKPC involving the processes currently being used to produce KKPC's 6PPD products. Flexsys' new ITC action is in violation of that Court Order. On July 13, 2006, the ITC entered a Final Determination in Flexsys' previous ITC action against KKPC that KKPC did not infringe Flexsys' '111 patent. Flexsys chose not to appeal the Final Determination in favor of KKPC. On December 21, 2007, the U.S. Court of Appeals for the Federal Circuit also found that KKPC's 4-ADPA supplier, Sinorgchem Co., Shandong, did not literally infringe Flexsys' '111 patent. Flexsys' request for a rehearing of that adverse appellate decision was denied, without comment, on April 7, 2008.

KKPC is represented by the law firms of Townsend and Townsend and Crew LLP, Heller Ehrman LLP and Washington, D.C.-based Adduci, Mastriani & Schaumberg, LLP. These firms worked together to defeat Flexsys' previous assertions of its '541 and '111 patents against KKPC.

KKPC manufactures synthetic rubbers and resins, rubber chemicals, and electronic components. Its products are found in everything from tires and shoes to office supplies and building materials. Founded in 1970, KKPC operates through several domestic offices and plants and international locations in Frankfurt, Germany; Shanghai, China; Jakarta, Indonesia; Los Angeles, US; Shenzhen, China; and Guangzhou, China. KKPC is a part of the Kumho Asiana Group, which is engaged in land and sea transportation, construction, tire manufacturing, and financial services, among others.

SOURCE Korea Kumho Petrochemical Co., Ltd.