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PGI Settles Patent Infringement Lawsuit

August 21, 2006

Polymer Group Inc. has settled a lawsuit filed against The Kroger Co., Inter-American Products and U.S. Nonwovens concerning private label imaged wipes sold through Kroger's food stores. Under the settlement agreement, Kroger, Inter-American and U.S. Nonwovens agreed to not sell any of the alleged infringing products after a certain cut-off date. Additional terms of the settlement were not disclosed.

PGI filed a lawsuit on July 28 in the U.S. District Court for the Northern District of Georgia in Atlanta alleging U.S. Nonwovens infringed and Kroger willfully infringed on PGI's patent relating to hydroentangled nonwovens having raised patterns. PGI executives have reported they are satisfied with the agreement.