Delco Remy Files Patent Infringement Lawsuit

Alleges several companies illegally profiting from Delco Remy technology

ANDERSON, Ind., Nov. 17 -- Delco Remy International, Inc., filed a patent infringement lawsuit today in the United States Federal District Court in Indiana, against Unipoint Electric Manufacturing Ltd. of Taiwan, NSA Corporation of Sterling, Virginia and Unit Parts Corporation of Oklahoma City. This lawsuit concerns various automotive alternators and starters, containing Delco Remy's patented proprietary technology, which these companies make and/or import, use, and sell to major distributors and/or retailers in the United States. Delco Remy has requested both injunctive relief and damages in its Complaint.

Delco Remy asserts that this activity infringes on its United States Patents No. 4,604,538; 5,268,605; 5,307,700; and 5,252,878. Delco Remy is concerned that certain companies are supplying the market with patent- infringing products sourced from China, as well as other countries. These sources are channeling new "knock-off" parts into the automotive aftermarket, which has traditionally used remanufactured products.

Richard L. Stanley, President of Delco Remy's Original Equipment group stated, "Counterfeit and patent-infringing, automotive, replacement parts have become a major problem for the industry. The copied products may look like our patented designs, but typically do not meet the design specifications in terms of functionality, quality and durability. Customers may incorrectly assume that a new knock-off part is a better choice than a remanufactured original equipment part. We are very proud of our engineering capabilities and the performance of our products. We will aggressively defend our patents against infringement."

In addition to bringing the lawsuit, Delco Remy is also delivering cease and desist notifications to more than 30 smaller manufacturers and distributors who are involved in similar practices. These companies make little or no investment in technology and subsist by copying the intellectual property of legitimate automotive manufacturers. Major national distributors and/or retailers, who may have unsuspectingly purchased patent-infringing parts from the companies named in the Complaint, are being advised of the lawsuit.

The Motor and Equipment Manufacturers Association (MEMA) estimates that counterfeit and patent-infringing replacement automotive parts are costing the global automotive industry approximately $12 billion annually. Delco Remy joins a growing list of major manufacturers taking a proactive position to ensure consumer confidence.

"Our objective is to protect the integrity of all legitimate manufacturers and remanufacturers in the market place. These actions will in no way hinder anyone's ability to repair or remanufacture products for the automotive aftermarket," said Richard L. Keister, President of Delco Remy's Aftermarket.

Delco Remy International, Inc., headquartered in Anderson, Indiana, is a leading designer, manufacturer, remanufacturer and distributor of electrical, drivetrain/powertrain and related products and core exchange service for automobiles and light trucks, medium- and heavy-duty trucks and other heavy- duty off-road and industrial applications. It was formed in 1994 as a partial divestiture by General Motors Corporation of the former Delco Remy division, which traces its roots to Remy Electric, founded in 1896. More information is available at the company's website: www.delcoremy.com