Allsun Signs settlement with Välinge Innovation

Viken, Sweden, July 06, 2007--The Chinese laminate producer and Välinge licensee Shanghai Allsun Wood Industry Co Ltd. has signed a full and final settlement agreement with Välinge for its non-reported sales of laminate flooring products.

Välinge’s legal department had collected, over the past months, information and evidence worldwide that the company had not been reporting all sold volumes in accordance with the license agreement and had actively been avoiding its obligations under the agreement.

After being confronted with the evidence Allsun has now put itself in line with the contract and welcomes the fact of being given the possibility to redeem itself, as Välinge finally agreed not to terminate the license agreement.

Allsun also agreed to pay a substantial amount in damage fee to Välinge.

- "We apply a zero tolerance against companies who do not report correct figures and will not hesitate to terminate license agreements, unless there are some very important circumstances why a company should be given a second chance", says Ignace Gorus In-house Counsel of Välinge.

- "We are increasing our focus on verifying the sales reports from our licensees. This is also a matter of fairness against those licensees who respect agreements and intellectual property", says Darko Pervan CEO Välinge.

In addition Allsun has agreed on terms that will now also make them benefit from a non-assertion on some of the Unilin patents, which is the result of the recent settlement agreement between Välinge and Unilin.

Allsun and Välinge now look forward to the future business together.