SP

FOR IMMEDIATE RELEASE

Smart Parts, Inc.
www.smartparts.com

Friday, December 17, 2004



JURY REACHES VERDICT IN NPF v. SMART PARTS PATENT CASE

A four-day jury trial on NPF's allegations of patent infringement against Smart Parts concluded Thursday, December 9, 2004 in the U.S. District Court for the Western District of Wisconsin. The jury found claim 10 of U.S. Patent No. 6,311,682 (the '682 patent) invalid for obviousness. Claims 21 and 39 of U.S. Patent No. 6,615,814 (the '814 patent) were not found to be invalid for obviousness. All three claims had previously been found to be infringed in a November 17, 2004 Memorandum and Order. Several post-trial issues remain pending and Smart Parts is preserving all of its legal rights.

Damages in the amount of $109,070 were awarded to NPF as a reasonable royalty for Smart Parts' infringement and an injunction prohibiting Smart Parts from future infringement of claims 21 and 39 of the '814 patent was entered following the jury verdict on damages.
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This does NOT affect Smart Parts' ability to market, sell, and distribute its Shocker, Impulse, and Nerve paintball guns and will not detrimentally affect the quality or performance of its markers in any way.
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Smart Parts has already taken all the necessary steps to comply with the terms of the injunction. Smart Parts' dealers and distributors therefore do not need take any action with respect to their continued sales of Smart Parts' products. The injunction does not apply to markers sold by Smart Parts before December 9, 2004

So basically, SP made necessary changes, and can still make and sell the current markers, after having to pay 110,000 dollars to NPF for infringment. So other than cash money, not a thing changes as far as Smart Parts is concerned.


Steve