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Pall files new patent infringement lawsuit against Entegris
Filtration Industry Analyst
IN BRIEF/NEWS
IN BRIEF • US water filtration company Environmental Water Systems (EWS) has won the Decorative Plumbing & Hardware Association’s 2006 Customer Service Department of the Year Award. Over 200 companies nationwide are eligible for the award. The award recognises outstanding business practices and extraordinary customer service. “We recognize that what really differentiates a company in today’s market is not just product, but how you interact with customers,” said Mark Truncale, EWS vice president of sales and marketing. “We simply make sure that every distributor, contractor, and consumer gets the answers and time they need to feel comfortable with their product inquiry.” • Entegris Inc has started a modified “Dutch auction” tender offer to purchase up to 20.4 million shares of its common stock at a price per share of US$11.00–12.25, for a maximum aggregate purchase price of up to US$250 million. The company expects the stock tender offer to expire on 8 June 2007, unless extended. “The magnitude and nature of this share repurchase, which follows a US$100 million buyback we completed in October 2006, reflects our confidence in Entegris’ future,” said Gideon Argov, Entegris chief executive officer. • Peerless Mfg Co’s board of directors has adopted a new shareholder rights plan, which is intended to protect the company and its shareholders from potentially coercive takeover practices or takeover bids that are inconsistent with the interests of the company and its shareholders.
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May 2007
by pending changes in environmental regulations, particularly those involving cleaner air and a reduction in diesel engine emissions. Manufacturers’ increasing interest in reclaiming production inputs from process water and investing in water recycling processes to reduce costs will also drive demand for filters, says Freedonia. Additionally, growth will come from newer products, particularly motor vehicle cabin air filters and many varieties of home air and water filters, and the development of a significant aftermarket within these segments. In 2006, fluid filters (eg fluid power, municipal water and waste, consumer water and industrial fluid filters) accounted for the largest share of total shipments, with 38%. Freedonia believes that growth going forward will be buoyed by strong gains in the consumer market and interest in input reclamation processes and water recycling. Although they compete with high-end membrane separation technologies, fluid filters will also benefit from their use as pretreatment steps for these technologies. Freedonia expects shipments of air filters to deliver the strongest growth through 2011, driven primarily by changes in environmental regulations and gains in the consumer market. The internal combustion engine and related filter segment (eg oil, air intake, fuel and cabin air) is a relatively mature product group that is expected to post more modest gains, but will benefit from the ongoing development of new types of diesel engine filters and a growing aftermarket for cabin air filters. The motor vehicle market will continue to account for the largest portion of total demand, with a 24% share in 2011, despite below average growth. The high volume of these oil, fuel and air intake filters sold as original equipment
and in the aftermarket more than offsets their relatively low unit prices. Demand for filters in the other transportation equipment and utilities markets is projected to post the strongest gains, powered by current and pending regulations, and concerns about the quality of air and potable water supplies. Demand for filters used in diesel-powered offroad equipment will also post strong gains, primarily stemming from pending regulatory changes. Filters, published in April 2007, is available for US$4500 from The Freedonia Group Inc. For further details visit www. freedoniagroup.com.
ECOSPHERE TO AUCTION TECHNOLOGY Ecosphere Technologies Inc, a provider of clean air and water technology solutions, is monetizing its portfolio of patented technologies through upcoming auctions, beginning with the IP Investment Summit and Live Auction in London on 1 June 2007. “Ecosphere has done a superb job in achieving customer acceptance of an environmentally friendly, patented robotic method of removing coatings from large vessels. We have 12 systems operating in the United States, Japan, Singapore, and soon in Portugal. The time is right to find a global company with manufacturing and distribution capability that can leverage this technology to maximize value for our shareholders,” said Ecosphere chairman George Sterner. “We are excited about monetizing these patented technologies to make room for the next phase of clean technologies we are developing,” commented Dennis McGuire, CEO of Ecosphere Technologies.
PALL FILES NEW PATENT INFRINGEMENT LAWSUIT AGAINST ENTEGRIS Pall Corp has filed a patent infringement action against Entegris Inc, alleging that the Entegris Impact filter cartridge line infringes four Pall patents. The suit seeks compensatory damages and a permanent injunction precluding Entegris from selling the infringing products. The lawsuit was filed in the United States District Court for the Eastern District of New York. “Our patents are core assets. They represent countless hours of work by our scientists and engineers and millions of dollars of corporate resources. We vigorously protect our intellectual property rights,” said Steve Chisolm, president of Pall Microelectronics. At issue in the suit are two Pall technology platforms: the Ultipleat laid-over pleat filter pack and the EZD low hold-up volume filter capsule. Entegris says that it sees no merit in the law suit. “As our customers can attest, innovation is at the core of our leadership in the market. Entegris takes great pains to respect the intellectual property of others and expects its competitors to do the same,” said Peter Walcott, Entegris senior vice president and general counsel. “While we have not yet been formally served in this matter, we were able to obtain a copy of the complaint from the Court for review. We believe that Pall’s action is entirely without merit and we intend to vigorously defend our right to provide these products to solve our customers’ photolithography filtration needs.” This is the fifth legal action between Entegris and Pall alleging infringement of various patents.
IN BRIEF/NEWS
IN BRIEF • US water filtration company Environmental Water Systems (EWS) has won the Decorative Plumbing & Hardware Association’s 2006 Customer Service Department of the Year Award. Over 200 companies nationwide are eligible for the award. The award recognises outstanding business practices and extraordinary customer service. “We recognize that what really differentiates a company in today’s market is not just product, but how you interact with customers,” said Mark Truncale, EWS vice president of sales and marketing. “We simply make sure that every distributor, contractor, and consumer gets the answers and time they need to feel comfortable with their product inquiry.” • Entegris Inc has started a modified “Dutch auction” tender offer to purchase up to 20.4 million shares of its common stock at a price per share of US$11.00–12.25, for a maximum aggregate purchase price of up to US$250 million. The company expects the stock tender offer to expire on 8 June 2007, unless extended. “The magnitude and nature of this share repurchase, which follows a US$100 million buyback we completed in October 2006, reflects our confidence in Entegris’ future,” said Gideon Argov, Entegris chief executive officer. • Peerless Mfg Co’s board of directors has adopted a new shareholder rights plan, which is intended to protect the company and its shareholders from potentially coercive takeover practices or takeover bids that are inconsistent with the interests of the company and its shareholders.
6
May 2007
by pending changes in environmental regulations, particularly those involving cleaner air and a reduction in diesel engine emissions. Manufacturers’ increasing interest in reclaiming production inputs from process water and investing in water recycling processes to reduce costs will also drive demand for filters, says Freedonia. Additionally, growth will come from newer products, particularly motor vehicle cabin air filters and many varieties of home air and water filters, and the development of a significant aftermarket within these segments. In 2006, fluid filters (eg fluid power, municipal water and waste, consumer water and industrial fluid filters) accounted for the largest share of total shipments, with 38%. Freedonia believes that growth going forward will be buoyed by strong gains in the consumer market and interest in input reclamation processes and water recycling. Although they compete with high-end membrane separation technologies, fluid filters will also benefit from their use as pretreatment steps for these technologies. Freedonia expects shipments of air filters to deliver the strongest growth through 2011, driven primarily by changes in environmental regulations and gains in the consumer market. The internal combustion engine and related filter segment (eg oil, air intake, fuel and cabin air) is a relatively mature product group that is expected to post more modest gains, but will benefit from the ongoing development of new types of diesel engine filters and a growing aftermarket for cabin air filters. The motor vehicle market will continue to account for the largest portion of total demand, with a 24% share in 2011, despite below average growth. The high volume of these oil, fuel and air intake filters sold as original equipment
and in the aftermarket more than offsets their relatively low unit prices. Demand for filters in the other transportation equipment and utilities markets is projected to post the strongest gains, powered by current and pending regulations, and concerns about the quality of air and potable water supplies. Demand for filters used in diesel-powered offroad equipment will also post strong gains, primarily stemming from pending regulatory changes. Filters, published in April 2007, is available for US$4500 from The Freedonia Group Inc. For further details visit www. freedoniagroup.com.
ECOSPHERE TO AUCTION TECHNOLOGY Ecosphere Technologies Inc, a provider of clean air and water technology solutions, is monetizing its portfolio of patented technologies through upcoming auctions, beginning with the IP Investment Summit and Live Auction in London on 1 June 2007. “Ecosphere has done a superb job in achieving customer acceptance of an environmentally friendly, patented robotic method of removing coatings from large vessels. We have 12 systems operating in the United States, Japan, Singapore, and soon in Portugal. The time is right to find a global company with manufacturing and distribution capability that can leverage this technology to maximize value for our shareholders,” said Ecosphere chairman George Sterner. “We are excited about monetizing these patented technologies to make room for the next phase of clean technologies we are developing,” commented Dennis McGuire, CEO of Ecosphere Technologies.
PALL FILES NEW PATENT INFRINGEMENT LAWSUIT AGAINST ENTEGRIS Pall Corp has filed a patent infringement action against Entegris Inc, alleging that the Entegris Impact filter cartridge line infringes four Pall patents. The suit seeks compensatory damages and a permanent injunction precluding Entegris from selling the infringing products. The lawsuit was filed in the United States District Court for the Eastern District of New York. “Our patents are core assets. They represent countless hours of work by our scientists and engineers and millions of dollars of corporate resources. We vigorously protect our intellectual property rights,” said Steve Chisolm, president of Pall Microelectronics. At issue in the suit are two Pall technology platforms: the Ultipleat laid-over pleat filter pack and the EZD low hold-up volume filter capsule. Entegris says that it sees no merit in the law suit. “As our customers can attest, innovation is at the core of our leadership in the market. Entegris takes great pains to respect the intellectual property of others and expects its competitors to do the same,” said Peter Walcott, Entegris senior vice president and general counsel. “While we have not yet been formally served in this matter, we were able to obtain a copy of the complaint from the Court for review. We believe that Pall’s action is entirely without merit and we intend to vigorously defend our right to provide these products to solve our customers’ photolithography filtration needs.” This is the fifth legal action between Entegris and Pall alleging infringement of various patents.