Airboss Of America Corp.
TSX : BOS

Airboss Of America Corp.

October 18, 2005 16:02 ET

Appeal Court Rules Against AirBoss Railway Products

NEWMARKET, ONTARIO--(CCNMatthews - Oct. 18, 2005) - AirBoss of America Corp. (TSX:BOS) - AirBoss of America Corp. ("AirBoss" or the "Company") (TSX:BOS) today announced that AirBoss Railway Products, Inc., a wholly-owned subsidiary of the Company, has been notified that the United States Court of Appeals for the Federal Circuit has affirmed the final judgment of the United States District Court for the Western District of Missouri for patent infringement and the award of damages to be paid by AirBoss of US$3.3 million.

These damages, plus any interest and our legal costs, will be recorded as a one-time charge to income in the current year.

The ruling does not affect or limit in any way the current products being sold by the Company. AirBoss Railway Products, Inc. has experienced unprecedented demand for its products in 2005 and expects to complete the year with record sales levels. The potential amount of the damages had already been factored into the Company's borrowing lines and provided for by way of letters of credit securing the District Court's original award. The ruling is not expected to have a material adverse effect on the consolidated financial position of the Company.

AirBoss is a manufacturer of proprietary rubber products for the military and transportation industry. AirBoss is also one of North America's manufacturers of custom rubber compounds for a wide range of industrial applications. The Company's shares are listed on the Toronto Stock Exchange ("BOS").

AIRBOSS FORWARD LOOKING STATEMENT DISCLAIMER

This report contains forward-looking statements, which reflect management's best judgment based on factors currently known but involve significant risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including but not limited to risks more fully described in the "Risk factors" section of the Company's Annual Report, and other risks detailed in filings with the Ontario Securities Commission. Forward-looking information provided pursuant to the safe harbor established by recent securities legislation should be evaluated in the context of these factors.

Contact Information

  • AirBoss of America Corp.
    R.L. Hagerman
    CEO
    (905) 751-1188
    or
    AirBoss of America Corp.
    Stephen W. Richards
    CFO
    (905) 751-1188
    (905) 751-1101 (FAX)