Pason Systems Inc. - Judgment Issued in US Auto-Driller Lawsuit

    




 CALGARY, June 19, 2012 /CNW/ - Pason Systems Inc. ("Pason" or "the  Company")  announced today that a judgment has been issued in  the US patent infringement lawsuit regarding the Company's automatic  driller, which has been ongoing since 2003. The Company's inequitable  conduct claims were dismissed and a prior jury award entered in 2008  was upheld.  The plaintiff was awarded post-verdict damages resulting  in a total award of US$19.4 million. The plaintiff`s claim for treble  damages and injunctive relief was denied.  Following the jury verdict  in 2008, the Company accrued US$14.3 million and will increase this  accrual by US$ 5.1 million to reflect the updated amount. This amount  will be recorded in the Company's second quarter results. 

 Pason contends that the automatic driller does not to infringe the  patent at issue and intends to renew its appeal of the judgment  shortly.   

 The Company's automatic driller no longer utilizes the same technology  as its predecessor that was under scrutiny in this case.  The results  of this decision will have no impact on the Company`s operations.  

 Pason Systems Inc.                                    Pason Systems Inc. is a leading provider of instrumentation systems to  land-based and offshore drilling rigs worldwide. The company's rental  solutions, which include data acquisition, wellsite reporting, remote  communications, and web-based information management, maximize rig  uptime, improve work efficiency, and minimize operating costs. Pason's  common shares trade on the Toronto Stock Exchange under the symbol PSI. 

  

 Certain information regarding the Company contained herein may  constitute forward-looking information under applicable securities  law.  The words "anticipate", "expect", "believe", "may", "should",  "will", "estimate", "project", "outlook", "forecast" or other similar  words are used to identify such forward-looking information and  statements.  Forward-looking statements in this document may include  statements, express or implied, regarding the Company`s outlook as to  the results of any appeals or post-judgment motions, and the result of  this lawsuit on the Company`s operations.  These forward-looking statements are based upon various underlying  factors and assumptions, including those with regards to the current  state of the law surrounding patents, the state of the economy and the  oil and gas exploration and production business, in particular; the  Company's business prospects and opportunities; and estimates of the  financial and operational performance of Pason.  

 Forward-looking information and statements are subject to known or  unknown risks and uncertainties that may cause actual results to differ  materially from those anticipated or implied in the forward-looking  information and statements.  Risk factors that could cause actual  results or events to differ materially from current expectations  include, among others, changes to the relevant patent case and  statutory laws, the ability of Pason to successfully implement its  strategic initiatives and whether such strategic initiatives will yield  the expected benefits, the operating performance of Pason's assets and  businesses, the price of energy commodities, competitive factors in the  energy industry, changes in laws and regulations affecting Pason's  businesses, technological developments, and general economic  conditions. 

 Readers are cautioned not to place undue reliance on forward-looking  statements as there can be no assurance that the plans, intentions or  expectations upon which they are placed will occur.  Such forward  looking statements, although considered reasonable by management as of  the date hereof, may prove to be incorrect and actual results may  differ materially from those anticipated.  Forward-looking statements  contained in this press release are expressly qualified by this  cautionary statement. 

 Additional information on risks and uncertainties and other factors that  could affect Pason's operations or financial results are included in  Pason's reports on file with the Canadian securities regulatory  authorities and may be accessed through the SEDAR website (www.sedar.com or through Pason's website www.pason.com).  Furthermore, the forward looking statements contained in this news  release are made as of the date of this news release, and Pason does  not undertake any obligation to update publicly or to revise any of the  included forward-looking statements, whether as a result of new  information, future events or otherwise, except as expressly required  by securities law. 

Pason Systems Inc.


CONTACT:  For more information about Pason Systems Inc., visit thecompany'swebsite at www.pason.com or contact:Marcel Kessler President and [e-mail] ElliottChief Financial [e-mail] 


    

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