American Tool Moves Against Counterfeit Tools.

HOFFMAN ESTATES, Illin.--(BUSINESS WIRE)--June 11, 1999--

A federal court has upheld American Tool Companies' motion to bar a Michigan tool retailer from selling counterfeit copies of American Tools' products. The United States District Court in Charlotte, North Carolina issued a Sequestration Order and a Temporary Restraining Order on May 27, 1999, against Wholesale Tool Company for allegedly importing and selling tools that violate trademark and trade dress rights of American Tool Companies, Inc. in its range of QUICK-GRIP(R) bar clamps and VISE-GRIP(R) locking tools.

Wholesale Tool is alleged to have offered for sale in the United States a product that is almost identical to the patented QUICK-GRIP bar clamp. In addition, Wholesale Tool is alleged to have used pictures of genuine QUICK-GRIP bar clamps and VISE-GRIP locking pliers to `bait and switch' catalog customers into buying products that are not genuine American Tool products. Among other actions, the injunction requires the seven Wholesale Tool retail warehouses in Charlotte, suburban Detroit, Indianapolis, suburban Boston, Tulsa, Tampa and Houston to stop offering, and to segregate and secure the offending tools, as well as annual catalogs and interim flyers that picture them. U.S. Marshals and local police assisted American Tool in assuring compliance with the court order in an unannounced raid made on June 2.

A hearing on American Tool's motion for Preliminary Injunction is scheduled to be held in the Charlotte Federal Court on July 7, 1999.

American Tool developed the innovative and distinctive one-handed QUICK-GRIP bar clamp in the late 1980's, and has obtained patent, trademark and other protection in many countries throughout the world. This year, the company is celebrating the 75th anniversary of the invention of VISE-GRIP locking pliers, a brand name that is known globally as the benchmark for locking tools. Both products are manufactured in the company's facilities in Nebraska. The tools that were the subject of the raid are from China and Taiwan.

"We built our reputation by making and selling innovative, high-quality tools. Our tools carry a full lifetime warranty," said Allen Petersen, American Tool's Chairman of the Board and Chief Executive Officer. "We are pleased with the prompt response of the U.S. District Court that protects consumers from these cheap imitations," Petersen added. "We have always been vigilant in the enforcement of our intellectual property rights, and we will continue to defend our brands."

In 1996, the last time the counterfeit bar clamps were found in the United States, U.S. Marshals raided a Houston, Texas, trading company and seized Chinese-made clamps that violated American Tool's trademark and trade dress rights for the QUICK-GRIP bar clamp.

American Tool Companies, Inc., a privately-held company, employs approximately 4,200 employees at 23 manufacturing plants in Brazil (2), Denmark (2), England (5), Holland (1), New Zealand (2), South Africa (1), Portugal (1), the United States (9), and at sales, marketing, distribution, and administrative facilities around the world.

EDITORS, PLEASE NOTE: American Tool Companies brands are trademarks and should appear in all capital letters with the appropriate protection mark. They are adjectives and should always be used to modify a product category (e.g. VISE-GRIP Locking Pliers and Clamps).