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Biotech / Medical : Summit Technology (BEAM) -- Ignore unavailable to you. Want to Upgrade?

To: ajs who wrote (975)	7/8/1998 5:23:00 PM
From: WHL	Read Replies (1) \| Respond to of 1386

*NEWS*Summit Enters Into Settlement Agreement With FTC Staff Business Wire - July 08, 1998 16:27 WALTHAM, Mass.--(BW HealthWire)--July 8, 1998-- --Agreement Would Resolve All Counts Against Summit-- Summit Technology, Inc. (NASDAQ:BEAM) announced today that the Company has entered into a consent agreement with the Federal Trade Commission staff which would resolve all charges brought by the FTC against the Company. The agreement includes a consent order requiring that Pillar Point Partners be dissolved and also prohibits the Company from entering into licensing fee agreements with VISX, Inc. In addition, the consent order requires that various rights and information be provided to customers. The consent agreement does not prohibit the Company from charging a per procedure fee for use of its equipment, nor is it an admission or finding of any wrongdoing. Under the FTC's regulations, the consent agreement will now be presented to the FTC Commissioners. If accepted by the Commissioners, it will be published in the Federal Register for public comment. "We are pleased to have reached an agreement with the staff to settle the charges made by the FTC against Summit," said Robert J. Palmisano, the Company's Chief Executive Officer. "The time spent dealing with this matter has diverted management's attention from building the business. And the legal expenses have diverted funds that can now be better invested in marketing and sales activities to promote laser vision correction procedures and continue with our mission of meaning more to our customers. "The entry into a consent agreement is neither a finding nor an admission of wrongdoing by Summit," he continued. "Nor is there any fine or penalty associated with the consent decree," he noted. In June, the Company entered into a comprehensive settlement agreement with VISX dissolving Pillar Point Partners. As part of the settlement, the companies exchanged royalty free, worldwide cross-licenses to their laser vision correction patents, and VISX made a $35 million cash payment to the Company. The consent order incorporates this agreement between the two companies. Pillar Point Partners was formed in 1992 by the Company and VISX to resolve potentially ruinous patent disputes between the two companies and provide a patent environment in the U.S. in which laser vision correction could be successfully commercialized. Summit Technology is a leading developer, manufacturer and marketer of ophthalmic laser systems designed to correct common vision disorders such as nearsightedness, farsightedness and astigmatism. In 1995, Summit was the first excimer laser company to receive FDA approval for its Apex excimer laser system for the correction of mild to moderate myopia in the U.S. In addition, through its wholly owned subsidiary, Lens Express, Summit sells contact lenses and related products. Cautionary Statement Under "Safe Harbor" Provision of The Private Securities Litigation Reform Act of 1995: