IRVINE, Calif., July 16, 2004 – LAWFUEL – Masimo Corpor…

IRVINE, Calif., July 16, 2004 – LAWFUEL – Masimo Corporation today announced
that the District Court for the Central District of California upheld a jury
verdict against Tyco’s Nellcor division of $134.5 million for infringement of
Masimo’s patents. In doing so, the Court upheld jury findings of infringement
for two Masimo patents, with 15 patent claims. The Court also sustained the
jury verdict that Masimo did not infringe a Nellcor patent.

The court reversed the jury’s finding that the infringement was willful
and did not grant an injunction against Nellcor. Further proceedings will
determine the additional compensation due Masimo for its losses due to
continued infringement. The jury finding of willful infringement would have
allowed the court to increase the jury damages award.

The trial involved four patents and 21 claims asserted against Nellcor and
one patent and seven claims asserted against Masimo. The jury found
infringement against Nellcor on all 21 claims while finding no infringement
against Masimo. This ruling by the court leaves an infringement finding
against Nellcor on two patents with 15 claims and a damages award of
$134.5 million.

“We are pleased that the Court has confirmed that Nellcor has infringed
Masimo’s patents,” said Joe Kiani, CEO of Masimo. “While the Court overturned
some findings, in the end, a verdict of infringement of 15 claims is a
resounding statement that Nellcor infringed Masimo’s patents. Masimo
pioneered read-through-motion pulse oximetry, and this ruling confirms
Masimo’s contribution to the field.”

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