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llinois Court Awards Dimplex Enhanced Patent Damages and Enters Permanent Injunction against CFM Corporation

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Dimplex North America Limited announced that the US District Court for the Northern District of Illinois in Chicago has ruled in its favor on several post trial motions and has entered final judgment for damages in the amount of US $12.4 million in favor of Dimplex in its patent infringement suit against CFM and Vermont Castings. The jury in the case previously found in March 2005 that CFM willfully infringed Dimplex’s US Patent No. 5,642,580 (the ‘580 patent) by manufacturing and selling electric fireplaces and stoves that use Dimplex’s patented technology, and awarded Dimplex compensatory damages of US $8.3 million. By its order of May 11, 2005, the court awarded Dimplex enhanced damages of US $4.1 million citing CFM’s willful conduct by continuing to manufacture and sell the infringing products for four years after first having been put on notice of infringement. In addition, the court issued a separate order denying CFM’s claim that the ‘580 patent is unenforceable and entered a Permanent Injunction precluding CFM from selling more than 165 models of electric fireplaces and stoves that infringe the ‘580 patent. Martyn Champ, President of Dimplex North America Limited, said “Needless to say, we are very pleased that following the jury’s verdict in March that the court has seen fit to enhance the damages award in line with our expectations. We continue to work hard to develop the Electric Fireplace market throughout North America, and are prepared to defend our intellectual property when and if necessary.” Dimplex has filed suit against CFM on the same patented technology in Canada, and that case is due to go to trial in September 2005 in Toronto. Dimplex also has filed suit against Twin-Star International, Inc. in the United States and Canada. About Dimplex Dimplex North America Limited is a division of the Glen Dimplex Group of Ireland. For more than 30 years, the Glen Dimplex Group has been committed to outstanding innovation, quality and customer service that has enabled it to become the world’s leading manufacturer of electric heating products. Dimplex North America, headquartered in Cambridge, Ontario, is North America’s leading manufacturer/marketer of electric fireplaces.

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