Smart Parts

Indian Creek Designs

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Smart Parts, Inc. (³Smart Parts²) and Indian Creek Design, Inc. (³ICD²) today announced the signing of a Settlement Agreement and Consent Decree
which brought to a close their litigation over Smart Parts¹ electronic paintball gun patents.

ICD has agreed to pay an undisclosed sum of money in settlement of the litigation brought against it by Smart Parts in November 2002 in the United
States District Court for the District of Oregon. ICD has further agreed to only sell electronic paintball guns constructed pursuant to a license
from Smart Parts.

A partial summary judgment ruling earlier this year found ICD to infringe all but one of the claims of Smart Parts¹ U.S. Patent No. 6,474,326
B1 through the manufacture and sale of its electronic paintball guns, and denied most of ICD¹s affirmative defenses and counterclaims.
According to the terms of the Consent Decree, ICD¹s remaining affirmative defenses and
counterclaims, which relate to its allegations of invalidity and unenforceability, are also denied.

Smart Parts owns several issued patents and pending patent applications related to the use of electronics in the control and operation of
paintball guns. These include, for instance, U.S. Patent Nos. 6,474,326 B1; 6,035,843; 5,967,133; and 5,881,707.
 

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