News from Silent Witness, Honeywell

Silent Witness Settles Patent Dispute

Silent Witness Enterprises Ltd. announces it has reached a settlement with American Building Control (formerly Ultrak Inc.) with respect to their outstanding patent dispute.

American Building is the holder of a U.S. patent relating to a video recording system for modifying the behavior of passengers in vehicles. Silent
Witness refuted the validity of the patent or its application to its products or its obligation to pay royalties under a prior licensing agreement. The patent was upheld and reissued in 2002, prompting a resumption of this long outstanding dispute.

Under the terms of a settlement reached after mediation, Silent Witness has agreed to pay a fixed amount, payable over eight years with respect to its past sales and has entered into a licensing agreement with respect to future sales of products incorporating technology covered by the patent. In connection with this settlement, the company will incur a charge of approximately $1.3 million (Canadian) in its fiscal 2003 fourth quarter to cover the royalty, settlement and legal costs incurred in this settlement.

Honeywell Donates $25,000 to National Crime Prevention Council

Honeywell’s foundation has donated $25,000 to the National Crime Prevention Council (NCPC) on behalf of First Alert Professional. The funds will be used to support McGruff the Crime Dog’s “Take a Bite Out of Crime” campaign.

Introduced in 1980, the campaign has been instrumental in increasing safety awareness and encouraging people to participate in crime prevention measures. It continues to reduce fear in communities; change state crime policies to include more cost-effective prevention programs; and promote programs to keep youth from lives
of crime.

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