NEWS

Sharp Files Patent Infringement Lawsuit Against Taiwan-based LCD Maker HannStar

June 13, 2007

Today, Sharp Corporation filed a lawsuit against HannStar Display Corporation ("HannStar") and its affiliates in the United States District Court for the Eastern District of Texas seeking damages for infringement by HannStar, as well as to prevent HannStar from infringing four of Sharp's patents related to liquid crystal display (LCD) technology. The four patents involved are U.S. Patent Numbers 5,280,372, 5,760,855, 5,852,485, and 5,907,376, all of which relate to LCD panels. In its complaint, Sharp requests the Court to award compensatory damages to Sharp and to prohibit defendants' sales of LCD monitors and LCD televisions incorporating HannStar LCD panels. Sharp also requests a jury trial. Prior to the filing of this lawsuit, HannStar signed a Patent License Agreement with Sharp in January 2003 covering LCD panels for PCs. This license expired on December 31, 2006, however, and, prior to the expiration; HannStar had failed to pay Sharp the full amount of the licensing fees due under the Patent License Agreement. As a result, Sharp filed suit against HannStar in the Tokyo District Court in Japan in January 2006. The Tokyo District Court issued a judgment in favor of Sharp in December 2006. HannStar has appealed to the Intellectual Property High Court in Japan and the case is now pending in that Court. The defendants in the newly filed suit are HannStar Display Corporation (principal place of business at 580, Kao Shi Road, Yang-Mei, Tao-Yuan, Taiwan/Chairman: Yu-Chi Chiao) and its affiliates, Hannspree Inc. and Hannspree California Inc. Hannspree Inc. and Hannspree California Inc. sell LCD monitors and LCD TV sets in the United States that incorporate LCD panels manufactured by HannStar. The plaintiff is Sharp Corporation (principal place of business at 22-22 Nagaike-cho, Abeno-ku, Osaka 545-8522, Japan/President & COO: Mikio Katayama) About Sharp Sharp Corporation is a worldwide developer of innovative products and core technologies that play a key role in shaping the future of electronics. As a leader in liquid crystal displays (LCDs) and digital technologies, Sharp offers one of the broadest and most advanced lines of consumer electronics, information products and electronic components, while also creating new network businesses. Sharp Corporation employs about 56,600 people in the world (as of April 30, 2007) and recorded consolidated annual sales of 3,127,771 million yen for the fiscal year ended March 31, 2007. For more information, please visit Sharp's Web site at http://sharp-world.com/index.html.

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