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Stratagene Responds to Damages Awarded in Third Wave Case.


LA JOLLA La Jolla (lə hoi`yə), on the Pacific Ocean, S Calif., an uninc. district within the confines of San Diego; founded 1869. The beautiful ocean beaches, in particular La Jolla shores and Black's Beach, and sea-washed caves attract visitors and , Calif. -- Stratagene Corporation (Nasdaq:STGN), a developer, manufacturer and marketer of specialized life science research and diagnostic products, announced today that the federal judge overseeing Third Wave Technologies Inc. vs. Stratagene in the United States District Court for the Western District of Wisconsin The U.S. District Court for the Western District of Wisconsin sits in Madison at the Robert W. Kastenmeier United States Courthouse. It has two district judges and one full-time magistrate judge. The clerk of the court is a part-time magistrate judge.  has awarded Third Wave Technologies $15.9 million in damages and ruled that Stratagene must pay Third Wave's attorney's fees, in an amount to be determined by the court. In addition, the court denied Stratagene's motions for judgment as a matter of law Judgment as a matter of law (JMOL) is a motion made by a party, during trial, claiming the opposing party has insufficient evidence to reasonably support its case. JMOL is similar to summary judgment, which is a motion made before trial.  and for a new trial. On August 31, 2005, the jury in the case determined that Third Wave's 6,090,543 and 6,348,314 patents are valid and that Stratagene's FullVelocity products infringed those patents.

The sales by Stratagene of these products were approximately $400,000 since their inception in early 2004. Stratagene has other embodiments of its FullVelocity technology that do not infringe Third Wave's patents, and it believes that these embodiments can be applied effectively in both the research and molecular diagnostics marketplaces.

Stratagene believes that the jury's verdict and the damages awarded were not supported by the facts of the case or the law and as a result, the Company intends to appeal the decision. Stratagene intends to file an appeal in the Court of Appeals for the Federal Circuit in Washington, D.C. once a final judgment has been entered by the District Court. In addition to appealing the verdict, Stratagene will be seeking to have the damages amount reduced or eliminated.

Among the issues that Stratagene will raise on appeal are (i) the District Court's decisions to prevent the jury from hearing evidence that Stratagene had obtained patents on its FullVelocity technology and that the Patent Office had concluded and informed Stratagene that Stratagene's patents were free and clear of the prior art (including Third Wave's patents); (ii) the District Court's rejection of Stratagene's position that Third Wave's patents are invalid if they are interpreted as broadly as the District Court interpreted them; and (iii) the jury's damages finding and the District Court's trebling of it, thereby awarding $15.9 million in damages where there was only approximately $400,000 in allegedly infringing sales by Stratagene. Stratagene believes the foregoing grounds and others support a reversal of the jury's verdict and the Court's judgment and/or a substantial reduction of any damage award.

The Company has previously announced that it has a pending lawsuit against Third Wave for infringement of Stratagene's patents covering its proprietary FullVelocity(TM) technology for the quantitative detection of nucleic acids Nucleic acids
The cellular molecules DNA and RNA that act as coded instructions for the production of proteins and are copied for transmission of inherited traits.
. The suit was filed in the U.S. District Court for the District of Delaware and seeks monetary damages Monetary damages, in civil law, refers to compensation given to an injured party by a liable party. Monetary damages may be restitution, a penalty, or both.  as well as a permanent injunction permanent injunction n. a final order of a court that a person or entity refrain from certain activities permanently or take certain actions (usually to correct a nuisance) until completed.  against continued infringement by Third Wave for the sale of its Invader(R) Plus products.

About Stratagene Corporation

Stratagene is a developer, manufacturer and marketer of specialized life science research and diagnostic products. The Company's life science research unit supports advances in science by inventing, manufacturing and distributing products that simplify accelerate and improve research. These products are used throughout the academic, industrial and government research sectors in fields spanning molecular biology molecular biology, scientific study of the molecular basis of life processes, including cellular respiration, excretion, and reproduction. The term molecular biology was coined in 1938 by Warren Weaver, then director of the natural sciences program at the Rockefeller , genomics, proteomics, drug discovery and toxicology toxicology, study of poisons, or toxins, from the standpoint of detection, isolation, identification, and determination of their effects on the human body. Toxicology may be considered the branch of pharmacology devoted to the study of the poisonous effects of drugs. . The Company's diagnostic unit develops and manufactures products for urinalysis urinalysis (yr'ənăl`ĭsĭs), clinical examination of urine for the purpose of medical diagnosis. , and high quality automated instrument and reagent systems that use blood samples to test for more than 1,000 different allergies and autoimmune disorders Autoimmune Disorders Definition

Autoimmune disorders are conditions in which a person's immune system attacks the body's own cells, causing tissue destruction.
. In addition, by combining its expertise in diagnostics and molecular biology, as well as its experience with FDA FDA
abbr.
Food and Drug Administration


FDA,
n.pr See Food and Drug Administration.

FDA,
n.pr the abbreviation for the Food and Drug Administration.
 regulatory procedures, the Company is pursuing opportunities to expand its product portfolio to include molecular diagnostic kits and instrumentation. More information is available at www.stratagene.com.

Safe Harbor Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive.
 Statement

Certain statements in this news release that are not historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements. Stratagene generally identifies forward-looking statements by using words like "believe," "intend," "target," "expect," "estimate," "may," "should," "plan," "project," "contemplate," "anticipate," "predict" or similar expressions. You can also identify forward-looking statements by discussions of strategies, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results of Stratagene to be materially different from historical results or from any results expressed or implied by such forward-looking statements. Among the important factors that could cause actual results to differ materially from those contained in or implied by the forward-looking statements are risks associated with the company's inability to sufficiently anticipate market needs and develop products and product enhancements that achieve market acceptance, the company's ability to compete effectively in the diagnostics and life sciences research markets, variability of the company's quarterly revenues and operating results, the failure of the company to retain key employees, the company's ability to obtain additional debt or equity financing Equity Financing

The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation.
, the possibility of declining sales due in part to a reduction in research and development budgets or government funding, the company's ongoing ability to protect its own intellectual property rights and to avoid violating the intellectual property rights of third parties, extended manufacturing difficulties and currency fluctuations. For more information about these and other factors that could cause actual results to differ materially from those contained in or implied by the forward-looking statements please see "Factors that May Affect Future Results" included in Stratagene's Annual Report on Form 10-K Form 10-K

A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.


Form 10-K

See 10-K.
 for the year ended December 31, 2004 and in other reports filed by Stratagene from time to time with the Securities and Exchange Commission, including Quarterly Reports on Form 10-Q Form 10-Q

See 10-Q.
.
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Publication:Business Wire
Geographic Code:1USA
Date:Dec 20, 2005
Words:935
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