Celgard Files Patent Infringement Lawsuit Against LG Chem, Ltd.

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CHARLOTTE, N.C., Jan. 30, 2014 (GLOBE NEWSWIRE) -- Celgard, LLC ("Celgard"), a subsidiary of Polypore International, Inc. (NYSE:PPO), announced today that it has filed a complaint in the U.S. District Court of the Western District of North Carolina against LG Chem, Ltd. and LG Chem America, Inc. (collectively "LG").

The complaint alleges that LG has infringed Celgard's United States Patent No. 6,432,586 issued for an invention entitled "Separator for a High Energy Rechargeable Lithium Battery." The patent in the lawsuit covers ceramic composite layer lithium-ion battery separators first developed by Celgard for high-energy rechargeable lithium-ion batteries. This lawsuit has been filed following a lengthy period of unsuccessful discussions with LG regarding various business terms of its relationship with Celgard, including infringement of Celgard's patent. Celgard is represented by the law firm Kilpatrick Townsend & Stockton, LLP.

"Celgard has a long history of innovation in lithium-ion battery separators and is a proven world leader in this technology. We value long-term customer relationships, and we are interested in partnerships that reflect the value of our products in applications such as electric drive vehicles ("EDVs"), where exceptional safety and performance characteristics are critical," said Robert B. Toth, President and Chief Executive Officer of Polypore. "We supported LG for years under a formalized memorandum of understanding that was intended to result in a long-term supply agreement, investing substantial capital at their request and developing and qualifying high quality products with unique attributes. Unfortunately, after a long period of support and discussions, LG's recent approach and demands were simply unacceptable.

"Legal action is not a decision we take lightly. However, LG's recent approach in both consumer electronics and EDV applications leaves us with no choice," added Toth. "While LG has not confirmed this in writing to us as we requested, representatives of LG have verbally stated that they are attempting to qualify alternate sources of supply to Celgard separator—an action we believe constitutes further infringement of our coating patents. We are taking this action on behalf of our company and our shareholders to safeguard our assets, and we will continue to take appropriate steps to protect our intellectual property."

During the fourth quarter of 2013, Polypore recorded no revenues from LG and expects to report fourth quarter sales for the Electronics and EDVs segment to be in the low- to mid-$30 million range.

Polypore expects to announce its fourth quarter and full year 2013 financial results on February 24, 2014 after market close and will take questions regarding current business matters at that time.

About Polypore International, Inc.

Polypore International, Inc. is a global high technology filtration company specializing in microporous membranes. Polypore's flat sheet and hollow fiber membranes are used in specialized applications that require the removal or separation of various materials from liquids, primarily in the ultrafiltration and microfiltration markets. Based in Charlotte, NC, Polypore International, Inc. is a market leader with manufacturing facilities or sales offices in nine countries serving six continents. See www.polypore.net.

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CONTACT: Polypore International, Inc. Investor Relations Paul Clegg (704) 587-8886 investorrelations@polypore.net

Source:Polypore International, Inc.