18.07.2007 Overview

OSRAM and Citizen end their patent disputes

OSRAM grants Citizen a license for white LEDs

OSRAM GmbH and its subsidiary Opto Semiconductors, signed with Citizen Electronics Co. Ltd. of Japan, one of the leading manufacturers of electronic components, an extensive license agreement. The agreement covers the use of OSRAM intellectual property developments in white LED products of Citizen Electronics, a subsidiary of the famous watchmaker Citizen. This license agreement also puts an end to the disputes between the two companies that has been running since 2005. The way is now open for closer cooperation.

With the license agreement signed today Citizen is granted the right against payment to use OSRAM intellectual property in white LEDs of all sizes, in all output categories and for all areas of application, for example in the automobile sector or for displays and keypads. Dr. Rüdiger Müller, CEO of OSRAM Opto Semiconductors and Gerd Pokorny, General Counsel of OSRAM GmbH said "We are pleased that this agreement signals the end of an dispute and that another renowned LED manufacturer in Citizen Electronics has recognized the importance of our intellectual property."

In 2005, OSRAM Opto Semiconductors filed a lawsuit against Citizen for violation of OSRAM´s intellectual property rights to white LEDs both in Germany and 2006 in the USA. The relevant intellectual property rights protect OSRAM`s invention by which white light is produced by converting blue light using a yellow converter. In addition to signing this license agreement, OSRAM and Citizen are also discussing the possibility of cooperation.

Thanks to its powers of innovation and its broad product range, OSRAM Opto Semiconductors has climbed to number two in the world on the market for LEDs. Just recently the company announced that it will be expanding its production sites in Penang/Malaysia and its main plant in Regensburg/Germany. Among other things, a new production line is currently being built in Penang for LED chips.

About OSRAM GmbH:
OSRAM GmbH is one of the two leading lighting manufacturers in the world. Sales in the year ending September 30, 2006 totalled 4.6 billion euros, 88 percent of which came from outside Germany. OSRAM is a high-tech company in the lighting sector. Around 40 percent of sales comes from innovative products. This global player employs around 40,000 people worldwide, supplies customers in some 150 countries and has 49 production facilities in 18 countries (www.osram.com).

About OSRAM Opto Semiconductors:
OSRAM Opto Semiconductors GmbH, Regensburg, is a subsidiary of OSRAM GmbH. It offers its customers solutions based on semiconductor technology for the lighting, sensor and visualization sectors. The company has sites in Regensburg, San José (USA) and Penang (Malaysia). In the 2006 fiscal year (to September 30, 2007) more than 3500 employees of OSRAM Opto Semiconductors produced sales totaling 500 million euros.
(www.osram-os.com)