Major Victory for Biacore in Patent Dispute

Major Victory for Biacore in Patent Dispute Delaware Court Finds Biacore's Biosensor Patent Valid and Infringed Uppsala, Sweden 2000-01-04. On December 30, the U.S. District Court for the District of Delaware announced its decision in the patent dispute between Biacore AB and Biacore Inc., subsidiaries of Biacore International AB (NASDAQ: BCOR; SSE: BCOR) and Thermo BioAnalysis Corp (Thermo). The Court decided in Biacore's favor, holding that Biacore's patent (U.S. patent no. 5,436,161) is valid and that the patent has been infringed. The Court further indicated that it "will grant a permanent injunction preventing Thermo from infringing the '161 patent" and has requested further briefing regarding to the amount of damages to be paid by Thermo for its past infringement. Background The unique and pioneering affinity-based biosensor technology, first developed by Biacore a decade ago, has proven itself to be successful in a great number of areas. In basic life science research, in drug discovery and in pharmaceutical process and quality control, researchers and ® manufacturers have, through the use of BIACORE systems, been able to conduct research and generate data often not possible with conventional technologies. BIACORE instruments today help thousands of researchers around the world to gain a better understanding of how biologically active molecules bind to each other, and thereby create biological signals in life supporting processes. Biacore's business is based on the Company's unique, proprietary, affinity-based biosensor technology. There is no doubt that Biacore is at the absolute forefront in the world with respect to products based on this technology, which is protected by numerous patents. The many acknowledged scientific breakthroughs made by scientists at Biacore in the 15-year history of the company have further enhanced the BIACORE technology and expanded the market for BIACORE products. Over the years, Biacore inventors have solved several long-standing problems facing biosensor researchers, not least in surface chemistry, a vital area in biosensor technology. Competitors have tried several different ways of solving the same problems but failed, which has resulted in them having to resort to solutions falling short of specifications achievable by the BIACORE technology. The Trial Biacore AB and its U.S. subsidiary Biacore, Inc., on May 29, 1997, filed a complaint for willful infringement of U.S. patent no. 5,436,161 ("the '161 patent") against Thermo BioAnalysis Corp, owner of the competing company Affinity Sensors, manufacturing and selling the IAsys series of Optical Biosensors. The case was tried from October 26, 1998, to November 2, 1998. The trial focused on an important aspect of the unique surface chemistry of the sensor chips; a key part of Biacore's affinity based biosensors. The Decision On December 30, 1999 the United States District Court for the District of Delaware issued an order finding Biacore's biosensor patent valid and infringed by Thermo BioAnalysis Corporation. In its decision the Court found that the Thermo BioAnalysis' making, using and selling the IAsys series of Optical Biosensors employing a CM-dextran cuvette has infringed the '161 patent. The Court also found that Thermo BioAnalysis had "intentionally induced direct infringement of claims 4 and 5 of the '161 patent." The Court indicated that it "will grant a permanent injunction preventing Thermo from infringing the '161 patent" and has requested further briefing regarding to the amount of damages to be paid by Thermo for its past infringement. The Court's December 30, 1999 decision is a significant event in Biacore's history as it represents the successful enforcement of its valuable intellectual property rights. "We are extremely pleased with this decision by the Court. Biacore's patent portfolio is one of the Company's most important assets, and one we are determined to defend whenever or wherever necessary. It is gratifying to learn that the considerable efforts we have dedicated to proving our case have not been in vain", says Lars-Göran Andrén, President and CEO of Biacore International AB. "In the mid and long term, this will also most likely have a positive effect on Biacore sales in the U.S." The decision of the Court can be appealed to the Court of Appeals for the Federal Circuit, the centralized appellate Court for patent appeals. Either party may appeal any part of the decision that it believes was decided incorrectly. If the decision is appealed, it will take on average another 3-15 months before the appellate Court renders a decision. The full text of the Court's decision is available from the Lexis legal database. - Ends - This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, which, by their nature, involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. Notes to editors: Biacore is a global market leader in affinity-based biosensor technology. Target groups consist primarily of medical and life science research laboratories. However, expansion is also being pursued in other areas, such as food analysis. Biacore had sales of SEK 288.8 million in 1998 and an operating income of SEK 52.8 million. Based in Uppsala, Sweden, the company is listed on the OM Stockholm Exchange and NASDAQ in the U.S. Further information on Biacore can be found on the web: www.biacore.com Address and phone: Biacore International AB Rapsgatan 7 SE-754 50 Uppsala SWEDEN Phone: +46 (0)18-675700 Fax: +46 (0)18-150111 info@biacore.com www.biacore.com For further information,please contact: Lars-Göran Andrén, President and CEO +46 (0)18 675701 or +46 (0)708 540234 In the U.S: Marc R. Labgold, Legal Counsel +1 202-264-1245 or +1 703-906-0909 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/01/04/20000104BIT00080/bit0001.doc http://www.bit.se/bitonline/2000/01/04/20000104BIT00080/bit0002.pdf