Smart Parts and KEE Action Sports settle

[Junkie]

FOR IMMEDIATE RELEASE

Smart Parts Website:
smartparts.com
KEE Action Sports Website:
Kee Action Sports

Smart Parts and KEE Action Sports Settle Patent Litigation
June 15, 2007

Smart Parts, Inc. and KEE Action Sports, LLC announced the signing of a settlement agreement resolving the litigation that Smart Parts brought against KEE earlier this year in the Eastern District of Texas. As part of that settlement, KEE and Smart Parts have agreed to a worldwide, non-exclusive, royalty-bearing license under Smart Parts’ Electronic Paintball Gun Patents, including U.S. Patent Nos. 5,881,707; 5,967,133; 6,035,843; 6,474,326; 6,637,421; 7,100,593 and their foreign counterparts. In addition, although denying infringement, KEE has agreed to phase out certain barrel insert kit products, which Smart Parts asserted were infringing other patents. Also as part of the settlement agreement, Smart Parts has entered into a distribution agreement with KEE whereby KEE will be an authorized distributor of Smart Parts products.

Smart Parts owns numerous U.S. and international patents related to the sport of paintball. Among other things, Smart Parts’ patents cover various aspects of the electronic control of paintball guns, barrel porting, barrel insert kits, and other Smart Parts innovations.