KONE Corporation (“KONE”) sent to Mitsubishi Electric Corporation (“Mitsubishi Electric”) in Japan a letter regarding alleged infringement of KONE’s patents by Mitsubishi Electric’s machine-room-less elevators. Mitsubishi Electric, together with its subsidiaries, brought a suit to the Helsinki City Court, Finland, on May 23, 2001 seeking declaratory judgment that Mitsubishi Electric’s machine-room-less elevators do not infringe such KONE’s patents. Since then, both companies have discussed to resolve this matter in good faith, and reached an agreement to amicably settle this case out of the court. The terms and conditions of the settlement agreement between Mitsubishi Electric and KONE are confidential, but it is satisfactory for both Mitsubishi Electric and KONE. As a result of the settlement, KONE has withdrawn its cease and desist letter and Mitsubishi Electric has withdrawn the litigation in Helsinki.
Secretary to the Board of Directors
Senior Vice President
Corporate Communications & IR