SOURCE: Seoul Semiconductor

August 31, 2007 08:00 ET

Seoul Semiconductor, Korea and OSRAM, Germany Have Signed a Patent Cross-License Agreement

SEOUL, KOREA--(Marketwire - August 31, 2007) - Seoul Semiconductor (KOSDAQ: 046890), the eighth-largest LED manufacturer in the world, announced today that it has signed a patent cross-license agreement with OSRAM GmbH, a leading LED manufacturer based in Munich, Germany. Under this agreement, Seoul Semiconductor and OSRAM, including its wholly owned subsidiary OSRAM Opto Semiconductors of Regensburg, Germany, will share their patents pertaining to white and visible LED technologies.

The scope of the cross-licensing agreement refers to white and housing patents related to white and visible LED technologies. Under this mutually beneficial agreement, both companies will collaborate and build on each other's strengths as strategic partners. "This paves the way for closer cooperation between both companies," said Chung Hoon Lee, president of Seoul Semiconductor.

Under the agreement, the two parties will refrain from raising any objections against any patent rights pertaining to white and visible LED technologies, and will cooperate in defending cross licensed patent rights. Additionally, this agreement will enable Seoul Semiconductor to further establish its position as a world leader in high-brightness and energy-efficient LED lighting solutions.

The following is a transcript of a recent interview with Yanghee Han, vice president of sales and marketing at Seoul Semiconductor:

Question: Does the agreement include Seoul Optodevice?

Answer: Seoul Semiconductor has signed this agreement with OSRAM GmbH. OSRAM's subsidiary, OSRAM Opto Semiconductors, has the same rights as its parent OSRAM GmbH. Seoul Optodevice also has the right as a subsidiary of Seoul Semiconductor.

Question: How is the lawsuit with Nichia in the US proceeding?

Answer: Bingham McCutchen LLP, a national law firm with global capabilities in the US is leading the charge of Seoul Semiconductor's lawsuit. Bingham posted the good news on their website that Seoul Semiconductor has scored the first victory in the case against Nichia. Seoul Semiconductor is sure to win the final pending lawsuit soon.

Question: How about your strategic partnership with other global companies in addition to OSRAM GmbH?

Answer: We have signed an agreement with Cree USA and established a strategic partnership with Toyoda Gosei of Japan. Therefore, this agreement with OSRAM GmbH Germany enables Seoul Semiconductor to consolidate its strong position.

Question: Could you share additional information or details about this cross-license agreement?

Answer: I'm sorry but I cannot offer any other information besides what is mentioned in the release since this is a non-disclosure agreement. What is obvious is that with this agreement the two companies can have a strong partnership and cooperatively cope with the patent disputes caused by a third party.

About Seoul Semiconductor

Seoul Semiconductor is the largest LED lighting solutions manufacturer in Korea, and eighth-largest in the world. Seoul Semiconductor has been named to Forbes' and BusinessWeek's lists as one of the most promising Asian companies. Its product, Acriche was recently named as "Product of the Year 2006" by Elektronik, one of the most prestigious electronics magazines in Europe. Seoul semiconductor's primary business areas are LED packaging and custom module manufacturing. It provides a full range of LED products including AC-driven semiconductor light source, Acriche, High-brightness Power, Side View, Top, Chip, Lamp and High Flux LEDs, and custom type modules. Applications for the company's LED products include general lighting, signage, back lighting for mobile phones, TVs, notebook computers, automotive lighting, home appliances, signals, etc. Seoul Semiconductor reported US$200 million in sales in 2006. It has 1,251 patents and 100 licenses as of June 30, 2007. Seoul Semiconductor has 3 overseas corporate offices and 13 branches. Its products are also represented worldwide by more than 90 distributors.

About OSRAM GmbH:

OSRAM GmbH is one of the two leading lighting manufacturers in the world. Sales in the year ending September 30, 2006 totaled 4.6 billion euros, 88 percent of which came from outside Germany. OSRAM is a high-tech company in the lighting sector. Around 40 percent of sales come from innovative products. This global player employs around 40,000 people worldwide, supplies customers in some 150 countries and has 49 production facilities in 18 countries (www.osram.com).

About OSRAM Opto Semiconductors:

OSRAM Opto Semiconductors GmbH, Regensburg, is a subsidiary of OSRAM GmbH. It offers its customers solutions based on semiconductor technology for the lighting, sensor and visualization sectors. The company has sites in Regensburg, San José (USA) and Penang (Malaysia). In the 2006 fiscal year (to September 30, 2007) more than 3500 employees of OSRAM Opto Semiconductors produced sales totaling 500 million euros. (www.osram-os.com)

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