Epson and the Multi-Union Trading Company, dba PrintRite, Entered a Settlement and Permanent Injunction that Bars the Sale of Infringing Cartridges

LONG BEACH, Calif. - June 13, 2005 - Epson has settled two patent infringement lawsuits filed in the U.S. District Court in Portland, Ore., against Multi-Union Trading Company Ltd., a Hong Kong-based company that is one of the world's largest manufacturers of after-market cartridges. The Multi-Union cartridges are often sold in the U.S. under the PrintRite brand, in generic packaging or under other brand names. The settlement completely resolves two separate lawsuits against Multi-Union and its U.S. subsidiary Dynamic Print USA, Inc., that were filed by Seiko Epson Corporation, Epson America, Inc., and Epson Portland, Inc. in April 2001 and April 2005.

The Consent Judgment and Permanent Injunction ordered by the court pursuant to the settlement provides that 75 Multi-Union cartridge models infringe a combination of 30 Epson patents, including 17 utility patents and 13 design patents and further provides that all of the patents are valid and enforceable. Multi-Union and its subsidiaries are barred from importing and selling the infringing products effective sixty days after entry of the judgment. The injunction does not require the recall of products already sold. The parties also entered a settlement agreement, the financial terms of which are confidential.

"Epson recognizes competitors' rights to sell aftermarket cartridges as long as they compete fairly," said Elizabeth Leung director, Consumables, Epson.
"In this case, we are pleased that the settlement confirms the validity and enforceability of all of Epson's patents and bars further infringement. We will continue taking whatever action is necessary to protect our innovative products from unfair competition."

About Epson America Inc.
Epson America offers an extensive array of award-winning image capture and image output products for the consumer, business, photography and graphic arts market throughout North, Central and South America. The company is also a leading supplier of value-added point-of-sale (POS) printers and transaction terminals for the retail market. Founded in 1975, Epson America Inc. is the U.S. affiliate of Japan-based Seiko Epson Corporation, a global manufacturer and supplier of high-quality technology products that meet customer demands for increased functionality, compactness, systems integration and energy efficiency. Epson America Inc. is headquartered in Long Beach, Calif.

About Epson Portland Inc.
Epson Portland Inc. is the U.S.-based manufacturing subsidiary of Japan's Seiko Epson Corporation. Historically a printer manufacturer (from its opening day in July of 1986 until August of 2001 Epson Portland built over
15 million printers for business, government and personal use), the company currently manufactures ink cartridges for ink jet printers, refurbishes optical engines for LCD projectors, performs precision injection molding of proprietary plastic parts, and also provides specialized engineering services for the Seiko Epson Group.

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