LIQUID DYNAMICS CORPORATION

WEBSITE

November 2007

SUMMARY OF LITIGATION

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November 2004 Vaughan Company found guilty by jury trial of willfully infringing Liquid Dynamics’ U.S. Patent No. 5,458,414.

February 2005 Vaughan Company served with permanent injunction preventing sales of certain systems that violate Liquid Dynamics’ U.S. Patent No. 5,458,414.

January 2006 Federal court of appeals rejected Vaughan's appeal of jury verdict.  Judgment of willful infringement and permanent injunction affirmed.

November 2006 Vaughan Company denied appeal by the US Supreme Court, upholding the judgment of willful infringement and permanent injunction.

October 2006 Vaughan Company accused of additional infringements of Liquid Dynamics’ U.S. Patent No. 5,458,414. Case presently pending in the U.S. District Court for the Northern District of Illinois.

March 2007 Vaughan Company accused of violating the permanent injunction. Case presently pending in the U.S. District Court for the Northern District of Illinois.

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Note: For more details, contact J. Mark Crump, inventor of the JetMix ^TM System or Mark W. Hetzler, Esq., at Fitch, Even, Tabin & Flannery.

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