ELEKTA COMMENTS ON DECISION BY STOCKHOLMSBÖRSEN'S DISCIPLINARY COMMITTEE
On February 27, 2002, Elekta provided information that a jury in a lower court had charged the company to pay damages due to an alleged patent infringement and released information regarding the insurance solution that Elekta had chosen. The information had to take into account Elekta's desires regarding speed and openness with regard to the stock market as well as considerations to the court proceedings in the US.
Complete information pertaining to the status of the ongoing patent dispute as well as the composition of the insurance solution Elekta signed was provided in the company's year-end report on June 18, 2002, with a subsequent capital market meeting, in a press release dated September 20, 2002 and in telephone conferences with the international finance market and media in conjunction with this release.
With regard to the actual patent dispute, the situation is unchanged. Elekta has appealed the ruling in the lower court and has provided a surety bond of USD 25 million, corresponding to the amount of damages imposed in the lower court. The counterparty has not filed any objections against the size of the surety. Elekta estimates that the appeal process will require two to three years. Elekta's opinion, supported by legal counsel in the case is that the appeal has a strong basis.
The Disciplinary Committee of Stockholmsbörsen (Stockholm Stock Exchange) today levied a fine against Elekta for failure to comply with the listing agreement. The fine corresponds to twice the annual fee paid to the Exchange, totaling SEK 480,000.
The Disciplinary Committee considers that the information dated February 27, 2002 was incomplete and Elekta again regrets that the information in the press release did not clarify the specific terms of the company's insurance solution. This solution means that the damage liability is distributed over a longer period and consequently any payment obligation has limited significance for Elekta's liquidity and earnings.
Elekta is a world-leading supplier of advanced and innovative radiation oncology and neurosurgery solutions and services for precise treatment of cancer and brain disorders. Elekta's solutions are clinically effective, cost efficient and gentle to the patient.