Toyota and Paice Reach Settlement of Patent Disputes

WASHINGTON, July 19, 2010; Toyota Motor and Paice LLC have entered into an agreement to settle the patent disputes between them. The terms of the agreement are confidential. All lawsuits between the companies will be dismissed.

"I am happy that Toyota and Paice came to an amicable resolution on the use of my power-assisted engine invention," said Dr. Alex Severinsky, who founded Paice in 1992. "We have long believed that hybrid vehicles represent the wave of the future for the auto industry and hope that consumers will continue to embrace hybrid vehicles as a meaningful way to reduce emissions."

The parties agree that, although certain Toyota vehicles have been found to be equivalent to a Paice patent, Toyota invented, designed and developed the Prius and Toyota's hybrid technology independent of any inventions of Dr. Severinsky and Paice as part of Toyota's long history of innovation.

"After six years of litigation, we are pleased to reach a settlement with Toyota," said Frances Keenan, chairman of the Paice board of directors. "Toyota has been a leader in the hybrid industry - selling more hybrid vehicles than anyone in the world - and we appreciate and applaud their achievements."

"Paice is committed to the ongoing development of hybrid technology and selected research activities," added Robert Oswald, president and CEO of Paice. "We will continue to pursue licensing agreements with other automakers which use hybrid technology patented by Paice."

Earlier this month, Paice reached an agreement with Ford for the license of its breakthrough 1994 hybrid vehicle patent (U.S. Patent 5,343,970).

About Paice LLC

Paice LLC is a U.S. technology company formed in 1992 to develop hybrid vehicle technology that promotes lower emissions, superior driving performance and fuel efficient operation of internal combustion engines. Through its inventive endeavors, Paice has obtained 11 U.S. patents and numerous foreign patents related to hybrid vehicle technology. These include important concepts of high voltage in a hybrid vehicle and improved methods of control. Paice has demonstrated that using voltage as high as 500 volts or more is essential to achieving real efficiency in hybrid automobiles. A 2009 study ranked Paice's hybrid patents as the most dominant in the world.