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Press Release -- June 19th, 2011
Source: Comba Telecom
Tags: Exchange

Announcement on Litigation

This announcement is made by Comba Telecom Systems Holdings Limited on voluntary basis.

(17 June 2011, Hong Kong) - Recently, Comba Telecom Systems Holdings Limited and certain members of the Group (the “Company”) have received a writ issued by the Beijing No. 2 Intermediate People’s Court in the People’s Republic of China from Andrew LLC (“Andrew”) for a civil litigation with respect to an alleged patent infringement by the Company. Pursuant to the writ, Andrew has initiated legal proceedings against the Company in relation to the alleged patent infringement for its RET Antenna and sought for an injunction and indemnifi cation of economic loss of RMB12 million and other expenses relevant to the litigation. Andrew has also claimed that it has initiated legal proceedings in Brazil in relation to the alleged patent infringement. The Company is now in proceed of undertaking effective measures in response to the alleged claims.

Andrew has initiated litigation on the patent infringement relating to RET Antenna. Based on the understanding of the Company, the patent had been void and cancelled in various regions. In Europe, the patent over RET Antenna was cancelled by European Patent Office in 2009. In China, the patent of Andrew’s RET Antenna was declared void in 2007 and 2009 by the State Intellectual Property Offi ce and was also subsequently declared void by the Beijing Intermediate People’s Court in late 2010. The Company considers that the patent under litigation in China and Brazil should be declared void and the allegation against the Company for patent infringement in China and Brazil shall not be valid.

The Company places strong emphasis on its intellectual properties and has acquired substantial volume of patents. The Company respects others’ intellectual properties. The Company has undertaken positive measures to safeguard its legal rights of operation and will not rule out the possibilities of initiating counter litigation against Andrew. The Company will continue to devote resources to the research and development and extend its edges in technologies of its products on top of the leading technologies among the peers. Based on the analysis of the Company, the litigation will not have any signifi cant adverse impact on the Company’s future development.

The Company will make further announcement(s) timely pursuant to the requirements of the Listing Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited should there be any signifi cant progress of the litigation. As at the date of this announcement, there are no other discloseable material litigations or arbitrations involving the Company.

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