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Meritor Expected to Appeal Verdict

2 July 1998

Meritor Expected to Appeal Verdict

    TROY, Mich., July 2 -- Meritor Automotive, Inc.
announced today that it expects to appeal yesterday's civil jury verdict on
the validity and infringement phase of a patent infringement lawsuit in
Wilmington, Del., awarding $1.25 million in compensatory damages against the
company.
    The award stems from a lawsuit brought by Eaton Corp. claiming
that Meritor's Engine Synchro Shift(TM) (ESS) transmission had infringed on
their patent covering an automated truck transmission.  Since the jury found
the infringement to be willful, it is possible that the damages could be
increased up to three times the award.
    Meritor emphasized that the trial is not yet complete and that no final
judgment has been entered as the court must still evaluate other defenses that
would render the patent unenforceable.  For example, a hearing will soon be
scheduled on Meritor's claim that Eaton failed to disclose material prior
patents and public uses by others to the patent office when obtaining the
patent.
    Meritor is disappointed in the jury's verdict and continues to believe
that its position will be vindicated by either post-trial motions or an appeal
to the United States Court of Appeals for the Federal Court.
    Meritor, with 1997 sales of $3.3 billion, is a global supplier of a broad
range of components and systems for commercial, specialty and light vehicles.
Meritor consists of two businesses:  Heavy Vehicle Systems, a leading supplier
of drivetrain systems and components for medium- and heavy-duty trucks,
trailers and off-highway equipment and specialty vehicles including military,
bus and coach, and fire and rescue; and Light Vehicle Systems, a major
supplier of roof, door, access control and seat adjusting systems, electric
motors, suspension systems and wheels for passenger cars, light trucks and
sport utility vehicles.