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Unicharm and Fameccanica Reach Amicable Agreement

May 16, 2011

Cross folding technology covered by EU patent.

Unicharm Corp. and Fameccanica.Data SpA have amicably resolved a patent dispute concerning certain equipment used in two Fameccanica converting machines supplied in the European market for the cross folding of pant-type diapers. Under the terms of the agreement, Fameccanica will no longer manufacture or sell any equipment for the cross folding of pant-type diapers covered by a European Patent granted to Unicharm. Additionally, Fameccanica has rendered payment to Unicharm for the past manufacture and sale of the patented cross folding equipment and for the manufacturing and sale of the articles which are produced with the two Fameccanica converting machines equipped with the patented cross folding equipment.

The sale of these two lines was done prior to Fameccanica’s knowledge of the Unicharm patents. While it is Fameccanica’s policy to conduct a broad search of patent activity before launching new technology to the market, these patents were not yet made public record when Fameccanica researched cross folding technology, according to executives.

Fameccanica and Unicharm continue to main a strong customer/supplier relationship. Moving forward, Fameccanica will supply its future cross-direction pant machines with an alternative, equally suitable, cross folding technology, according to executives.

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