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US Arbitrator's Partial Final Award in Favor of Kington Holdings Against LoJack Equipment Ireland

Case stems from LoJack's termination of technology licence agreement with Kington in China

BEIJING, May 18 In November 2007 LoJack Equipment Ireland Ltd ("LEI"), a subsidiary of LoJack Corporation ("LoJack"), a provider of recovery systems for stolen vehicles, initiated arbitration proceedings against Kington Holdings Ltd. ("Kington") with the American Arbitration Association ("AAA") following LEI's termination on 12th November 2007 of the Technology License agreement for China exchanged with Kington in November 2006. During the course of the proceedings they also obtained an interim injunction against Kington and one if its directors and made public announcements of both the confidential proceedings themselves and the injunction.

On September 26th 2008 Kington filed a counterclaim against LEI in the arbitration proceedings. On September 30th, 2008 Kington also filed claim No. 0801815 against LoJack in Massachusetts Superior Court in Norfolk County alleging interference with contractual relations relating to the said license agreement and seeking damages of $269.3M, plus attorneys' fees and treble damages if it is held that LoJack acted in bad faith. On LoJack's motion, that claim was stayed until final determination of the arbitration proceedings.

On 17th March 2009 the Arbitrator appointed by AAA made a Partial Final Award, finding in favour of Kington on the question of liability -- an award of which LoJack has made a unilateral but incomplete public disclosure. Kington filed the Award with the Superior Court in accordance with Massachusetts law and LoJack, after announcing the award, sought to keep its contents secret by applying for impoundment of the Award and all related materials. On 5th May 2009, the Superior Court rejected LoJack's motion for impoundment and lifted the stay on Kington's claim

The Arbitrator's Partial Final Award, is, therefore, now a public document in the Superior Court. For the protection of its name and reputation and to avoid misunderstandings, Kington believes that it is now proper for the accurate text of the Arbitrator's findings to be published as follows:

  -- It is declared that LEI improperly terminated the Agreement
  -- LEI is found to have breached the Agreement and the implied covenant of
     good faith and fair dealing.
  -- Whether Kington is entitled to any damages, costs and/or attorneys'
     fees and, if so, the amount will be determined in Phase II of this
  -- This Partial Final Award is final and conclusive as to the relief
     sought by each party in this Phase I of this arbitration.
  -- All other requests for relief made by the parties in this Phase 1 of
     this arbitration are denied.