SOURCE: Given Imaging

May 23, 2006 16:12 ET

Given Imaging Provides Update on Patent Matters

YOQNEAM, ISRAEL -- (MARKET WIRE) -- May 23, 2006 -- Given Imaging (NASDAQ: GIVN) announced today that it has received notice that Olympus Corporation and its subsidiaries Olympus Medical System Corporation and Olympus America Inc. filed a complaint in the United States District Court for the Eastern District of Pennsylvania against Given Imaging Ltd. and Given Imaging, Inc. for alleged infringement by Given Imaging of U.S. Patent 5,010,412 entitled "High Frequency, Low Power Light Source for Video Camera." The '412 patent, which expires in December 2008, was bought by Olympus Medical from The Boeing Company in July 2005.

In November 2002, Boeing approached Given Imaging offering to grant it a license to the '412 patent. Given Imaging believes that its PillCam capsule neither infringes nor utilizes any invention claimed under any valid claim in the '412 patent. Following communications between Boeing and Given Imaging, Boeing abandoned its pursuit of this issue early in 2004.

In the same document, Olympus seeks a declaratory judgment that its capsule endoscopy system, which it plans to sell in the United States, does not infringe Given Imaging U.S. Patent 5,604,531. Olympus has not yet completed its clinical trials for its product nor does it have the FDA clearance necessary to market its product in the United States.

The filing by Olympus follows a decision of the United States Patent and Trademark Office (USPTO) on April 7, 2006 confirming the validity of 13 of the original 17 claims of Given Imaging's patent '531. Given Imaging believes this complaint is without merit and will take the necessary actions to protect its interest.

Given Imaging does not expect its customers to be affected by the Olympus complaint.

Given Imaging has built a broad patent estate including over four hundred patent applications worldwide and forty three issued patents in the United States, Europe, Japan, Australia, South Korea and Israel. These patents and patent applications include thousands of claims addressing various aspects of current and future capsule endoscopes and capsule endoscopy systems as well as other technologies.

"We were aware of this patent from Boeing which we addressed in 2003 that expires in 2008. We are confident about the strength of our broad IP portfolio and our leadership position," said Homi Shamir, president and CEO of Given Imaging.

About Given Imaging

Given Imaging is redefining gastrointestinal diagnosis by developing, producing and marketing innovative, patient-friendly products for detecting gastrointestinal disorders. The company is developing a complete line of PillCam™ video capsules for detecting disorders of the gastrointestinal tract. The company's technology platform is the Given® System, featuring the PillCam video capsule, a disposable, miniature video camera contained in a capsule, which is ingested by the patient. The PillCam SB capsule is a naturally ingested method for direct visualization of the entire small intestine. It is currently marketed in the United States and in more than 50 other countries and has benefited more than 340,000 patients worldwide. The PillCam ESO video capsule, which provides visual examination of the esophagus, has been cleared for marketing by the FDA. Additional capsules for visualization of the stomach and colon are under development. Given Imaging's headquarters, manufacturing, and R&D facilities are located in Yoqneam, Israel; it has direct sales and marketing operations in the United States, Germany and France, and local offices in Japan, Spain, and Australia. For more information, visit http://www.givenimaging.com.

This press release contains forward-looking statements about Given Imaging, including projections about our business and our future revenues, expenses and profitability, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, statements in the future tense, words such as "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify such forward-looking statements. Those forward-looking statements are not guarantees of future performance and actual results could differ materially from our current expectations as a result of numerous factors, including but not limited to the following: changes in regulatory environment, our success in implementing our sales, marketing and manufacturing plan, protection and validity of patents and other intellectual property rights, the impact of currency exchange rates, the effect of competition by other companies, the outcome of future litigation, the reimbursement policies for our product from healthcare payors, quarterly variations in operating results, the impact of the newly adopted SFAS 123R for expensing option-based payments, the possibility of armed conflict or civil or military unrest in Israel and other risks disclosed in our filings with the U.S. Securities and Exchange Commission.

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