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Polymer Group, Inc. Announces Patent Infringement Lawsuit Filed Against The Kroger Co., Inter-American Products, Inc. and U.S. Nonwovens Corp.

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2006-07-29 04:38:48     
Polymer Group, Inc.

Polymer Group, Inc. (OTC Bulletin Board: POLGA, POLGB) (PGI), one of the world's leading producers of engineered materials, announced today that it, through certain of its subsidiaries, has filed a suit against The Kroger Co. (Kroger), Inter-American Products, Inc. (Inter-American) and U.S. Nonwovens Corp. for patent infringement related to private-label imaged wipes sold through Kroger's retail food stores.

The suit, filed in the United States District Court for the Northern District of Georgia, Atlanta Division, alleges that Kroger is willfully infringing PGI's U.S. Patent No. RE 38,505, which relates to hydroentangled nonwoven fabrics having raised patterns. The allegedly infringing product is Kroger's "Everyday Living(R) Refill Dusting Cloths." PGI is being represented in the case by Robins, Kaplan Miller & Ciresi LLP, a nationally recognized intellectual property litigation firm.

PGI has invested significant resources to develop successful programs based on its proprietary Apex(R) technology and ability to produce truly three-dimensional materials that have superior performance characteristics to other products due specifically to the images created. PGI's patents in this area relate not only to new value-added wipes applications but also to a broad variety of other highly engineered consumer and industrial end-use markets.

The alleged infringements are a result of what the company believes to be efforts by competitors to participate in a differentiated sector of the market to the detriment of PGI and its patent portfolio. In addition to the lawsuit filed today, PGI has notified several other industry participants, including equipment manufacturers, nonwovens suppliers and marketers of end-use products, of potential infringements.

"PGI is an innovation leader in the engineered materials industry and we place a high value on our intellectual property portfolio," said James L. Schaeffer, PGI's chief executive officer. "Inherent in being a company that values innovation is the commitment to defend our proprietary position in our markets. We believe taking such action to protect our innovations is not only in our best interests, but is also in the best interests of our customers, suppliers and shareholders."

Polymer Group, Inc., one of the world's leading producers of nonwovens, is a global, technology-driven developer, producer and marketer of engineered materials. With the broadest range of process technologies in the nonwovens industry, PGI is a global supplier to leading consumer and industrial product manufacturers. The company operates 22 manufacturing facilities throughout the world.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements speak only as of the date of this release. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include: general economic factors including, but not limited to, changes in interest rates, foreign currency translation rates, consumer confidence, trends in disposable income, changes in consumer demand for goods produced, and cyclical or other downturns; substantial debt levels and potential inability to maintain sufficient liquidity to finance the company's operations and make necessary capital expenditures; inability to meet existing debt covenants; information and technological advances; changes in environmental laws and regulations; cost and availability of raw materials, labor and natural and other resources and the inability to pass raw material cost increases along to customers; domestic and foreign competition; reliance on major customers and suppliers; and risks related to operations in foreign jurisdictions. Investors and other readers are directed to consider the risks and uncertainties discussed in documents filed by Polymer Group, Inc. with the Securities and Exchange Commission, including the company's Annual Report on Form 10-K.

Specialized in: Polymer Group - Lawsuit Filed - Kroger
URL: http://www.polymergroupinc.com
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