S.C.C. SUES FUTURE GRAPHICS & MITSUBISHI

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Date: Thursday April 6, 2006 11:32:00 am
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    Future Graphics and Mitsubishi Kagaku Imaging Respond to SCC’s Lawsuit
    Los
    Angeles, CA: April 2006 – Static Control Components  filed a lawsuit
    (ref. number 1:006-cv-00154) against Mitsubishi� Kagaku Imaging
    Corporation  and Future Graphics LLC, alleging violation of the North
    Carolina Trade Protection Act and civil conspiracy.
    SCC claims that
    FG and MKIC used the SCC correlative product codes to match MKIC
    products to the products containing SCC part numbers and therefore
    expedite the transition of MK Imaging products to customers wishing to
    purchase the qualified MKIC products that they had come to rely on.
    Future
    Graphics “believes these allegations to be absolutely false.” They
    state: “At no time was it necessary or desirable for FG to utilize SCC
    correlative information, and FG did not possess this information at the
    time of the suit.
    “Furthermore, FG does not bypass qualifying
    procedures on any toner product we sell just because there may be
    product codes apparently matching our suppliers product to one sold by
    another distributor. There are several reasons for this.
    “First, FG
    has always operated under the policy that one can never be certain that
    a product previously supplied by another distributor is actually the
    product the customer thinks it to be. Therefore, testing is necessary
    to assure the validity of the product….
    “Second, FG is fully
    capable of and is equipped to test toner/OPC combinations in a thorough
    and timely fashion, especially in conjunction with the unsurpassed
    technical capabilities of MKIC.
    “As far as OPCs are concerned, it is
    obvious to anyone in the industry that FG does not need SCC part
    numbers to know the difference, for example, between an HP4000 and an
    HP4100. All that is required is that the customer specify their
    requirement for the printer application.
    “FG has therefore agreed
    that it will not use the SCC correlative part numbers. To agree not to
    do what it previously had not been doing nor had any intention of doing
    was a simple decision.
    “As always, Future Graphics prefers to do
    business the old-fashioned way, relying on time-honored principles of
    freedom of choice, quality, service, and price — not on courtrooms and
    restrictions placed on buyers and/or sellers. FG believes that the
    customer should have the right to purchase what and from whom it
    chooses.
    “FG looks forward to being of continuing service to the remanufacturing community.”
    In
    its response, Mitsubishi Kagaku Imaging Corporation addressed the SCC
    lawsuit brought in connection the MKIC’s decision to terminate its
    distributorship with SCC and enter a new and exclusive relationship
    with Future Graphics.
    “It has been reported that representatives of
    SCC have been making inaccurate and defamatory statements to the market
    regarding MKIC’s products and MKIC’s right to sell its own products,”
    begins the response. MKIC says it sees no basis for the claims made by
    SCC and will “vigorously defend its rights.”
    Furthermore, MKIC
    enumerated the “facts” in question-and-answer format, contending that
    MKIC owns the intellectual property rights to the OPC drums and toner
    at issue, and that the products being sold to Future graphics are the
    same ones sold to SCC, with the exception of “certain plactic
    components previously purchased from SCC.”
    MKIC further stated that
    testing procedures for MK Imaging now adhere to STMC testing protocols
    rather than those required by Static Control, noting that Future
    Graphics encourages industry standardization advanced by STMC testing.}
    The
    MK Imaging brand OPC drums and toner are now exclusively distributed by
    Future Graphics and Delacamp, although MKIC claims that SCC was offered
    a supply of the products during the transition period following
    termination of its distribution agreement.

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