SOURCE: FormFactor

June 26, 2008 09:00 ET

Korean Supreme Court Reverses Korean Patent Court Ruling That Upheld Validity of FormFactor Patent

Oral Ruling Returns the Proceedings to the Korean Patent Court With Instructions to Revisit the Prior Decision Holding the Claims of FormFactor's Korea Patent No. 252457 Valid

LIVERMORE, CA--(Marketwire - June 26, 2008) - FormFactor, Inc. (NASDAQ: FORM) announced the Korea Supreme Court issued an oral ruling finding that 12 claims of FormFactor's Korean Patent No.252457 are invalid, and remanding the case back to the Korean Patent Court for further proceedings consistent with the ruling. The decision does not specifically address the remaining 48 claims of Patent No. 252457, or FormFactor's infringement claims against Phicom Corporation. Following normal practice, the bases for the ruling were not given and a written opinion explaining the ruling will typically be expected in one to three weeks.

"Once we receive the Korea Supreme Court's written decision on our Korea Patent No. 252457, we will consider the scope of any resumed Patent Court validity proceedings and evaluate the impact of the decision on our remaining Korea infringement actions," said Stuart Merkadeau, FormFactor's senior vice president, general counsel. "As a technology company that makes significant investments in innovation, it is important that we continue to take steps to protect our intellectual property. We believe this latest decision from the Korean courts will not materially impact our pending action before the U.S. International Trade Commission, which is a part of our global strategy to protect our intellectual property against unauthorized use."

FormFactor's advanced wafer probe card products and solutions are relied upon by its customers to reduce their overall cost of test and enable their technology roadmaps. The company believes the announced ruling will have no immediate business impact.

FormFactor's Korea Patent No. 252457 was issued by the Korean Intellectual Property Office, KIPO, in 2000. In 2004, the Intellectual Property Tribunal Panel at KIPO upheld the patent against Phicom's challenge, and in 2006, the Korea Patent Court re-confirmed the validity of the patent by dismissing Phicom's appeal of the IPT panel decision. It was after these earlier reviews of Korea Patent No. 252457 that the Korea Supreme Court found issues with the patent claims and directed the Patent Court to revisit patent validity. FormFactor's infringement claims in Korea against Phicom, which were filed February 24, 2004 with the Seoul Southern District Court (Patent Nos. 278342, 399210) and in August 8, 2006 with the Seoul Central District Court (Patent No. 252457), are still pending. In 2007, the Korea Supreme Court issued a decision holding invalid certain claims from FormFactor's Korea Patent Nos. 278342 and 399210, and a 2008 Korea Supreme Court decision held invalid certain claims of the company's Korea Patent No. 324064. The Korea Supreme Court decisions have addressed the validity of some, but not all, of the Korea patent claims FormFactor is asserting against Phicom. FormFactor has appealed a 2008 decision of the Seoul Southern District Court which found certain claims of FormFactor's Korea Patent No. 252457 and 324064 either invalid or not infringed.

About FormFactor:

Founded in 1993, FormFactor, Inc. (NASDAQ: FORM) is the leader in advanced wafer probe cards, which are used by semiconductor manufacturers to electrically test integrated circuits, or ICs. The company's wafer sort, burn-in and device performance testing products move IC testing upstream from post-packaging to the wafer level, enabling semiconductor manufacturers to lower their overall production costs, improve yields, and bring next-generation devices to market. FormFactor is headquartered in Livermore, California with operations in Europe, Asia and North America. For more information, visit the company's web site at www.formfactor.com.

FormFactor is a registered trademark of FormFactor, Inc. All other product, trademark, company or service names mentioned herein are the property of their respective owners.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature are forward-looking statements within the meaning of the federal securities laws, including statements regarding business momentum, demand for our products and solutions and future growth. These forward-looking statements are based on current information and expectations that are inherently subject to change and involve a number of risks and uncertainties. Actual events or results might differ materially from those in any forward-looking statement due to various factors, including, but not limited to: the company's ability to defend its intellectual property rights in Korea and elsewhere in the world, the impact of rulings in Korea on other pending litigation, including the proceedings before the U.S. International Trade Commission, the company's ability to develop customized products that meet its customers' ever-evolving test requirements and to continue to timely manufacture and deliver the next generation of testing technology to help enable semiconductor manufacturers to lower their test costs. Additional information concerning factors that could cause actual events or results to differ materially from those in any forward-looking statement is contained in the company's Form 10-K for the year ended December 29, 2007, and the company's Form 10-Q for the quarterly period ended March 29, 2008, filed with the Securities and Exchange Commission ("SEC"), and subsequent SEC filings. Copies of the company's SEC filings are available at http://investors.formfactor.com/edgar.cfm. The company assumes no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual results could differ materially from those anticipated in forward-looking statements.

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