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U.S. Court Orders Trial Of Medinol Ltd.'s Contract Claims Against Boston Scientific Corporation (BSX)


10/19/2005 5:12:21 PM

NEW YORK, Dec. 2 /PRNewswire/ -- A federal court today ordered to trial claims by Medinol Ltd. that its former partner, Boston Scientific Corp. , secretly set up a factory in Ireland to manufacture the Medinol stents without Medinol's permission.

Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York also ruled that Medinol was entitled to try its claims that Boston Scientific's sale of Express and Taxus stents is a breach of contract and that Medinol is entitled to royalties on those sales.

Stents are tubular devices implanted in arteries and other vessels to keep them open.

Medinol, a closely-held Israeli company engaged in the development and manufacture of stents, entered into contracts with Boston Scientific in 1995 where Boston Scientific agreed to market and distribute stents made by Medinol.

In April of 2000, Boston Scientific Chief Executive Officer James Tobin revealed to Medinol a secret project called "BBD" ("Bring a Better Deal") and "Project Independence" under which Boston Scientific appropriated Medinol's designs for stent making machinery and had built a copy of the machinery in Ireland. Tobin made the revelation to Medinol because the U.S. Justice Department had discovered the copy.

Boston Scientific asserted that it was permitted to engage in Project Independence because it believed that Medinol might delay or cut off delivery of stents. Judge Hellerstein found Boston Scientific's actions in Project Independence were taken in bad faith.

Judith Richter, Chief Executive Officer of Medinol, said of the decision, "I am gratified that Medinol now will have an opportunity to seek justice at trial."

Judge Hellerstein set a status conference for 13 January, 2005, "to discuss a procedure to negotiate settlement ... and to set a date for trial."

Medinol Ltd.

CONTACT: Gerald McKelvey of Rubenstein Associates, Inc., PublicRelations +1-212-843-8013, or +1-917-886-6515, for Medinol Ltd.



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