Southwall Technologies Wins Judgment in Product Liability Case

Southwall Technologies Inc. (Nasdaq:SWTX), a global developer, manufacturer and marketer of thin-film coatings for the electronic display, automotive glass, and architectural markets, today announced that the United States District Court for the Northern District of California has rendered a final judgment in Southwall's favor in a product liability case filed by Wasco Products, Inc., a manufacturer and assembler of skylight systems.

The judgment resolved a dispute over insulated glass units (IGU's) manufactured by third parties, which utilized the company's Heat Mirror(R) solar control film together with a polyurethane sealant manufactured by Bostik, Inc.
In the matter of Wasco Products, Inc. v. Southwall Technologies Inc., et al., (Civil Action No. 02-2926, pending in the U.S. District Court for the Northern District of California), Judge Saundra Brown Armstrong granted Southwall's motion for summary judgment on all remaining claims and ruled in favor of Southwall on all of Wasco's claims for relief. The court also entered final judgment in favor of Bostik. The court denied Wasco's motion for summary judgment and also dismissed the motion for class certification as moot in light of its final judgment in favor of both defendants. The judgment is subject to appeal by Wasco until January 22, 2004.

"Southwall is very pleased with Judge Armstrong's ruling on this matter," said Thomas G. Hood, president and chief executive officer. "We have believed from the beginning that the suit was without merit, and the court's dismissal supports this belief."

600450 Southwall Technologies Wins Judgment in Product Liability Case
Date: 9 January 2004

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