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Letter to the Editor
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Thursday June 21

International Trade Commission Denies Keystone Automotive Motion to Reconsider Ford Patents Ruling

Keystone Automotive Industries, Inc.has received notification from the International Trade Commission denying the respondent's petition for reconsideration, terminating its investigation, and issuing a general exclusion order. The general exclusion order prohibits the importation by any importer of aftermarket collision parts that violate any of Ford's seven design patents that were previously determined to be valid.

The final determination by the International Trade Commission represents the beginning of the mandatory 60-day Presidential review period. Ultimately, the respondents believe they will need to appeal to the United States Circuit Court of Appeals for the Federal Circuit.

Keystone and the other respondents filed the petition for reconsideration with the Commission one day after the United States Supreme Court's April 30, 2007 decision in KSR International Co. v. Teleflex Inc.

"As we have continuously stated, the industry and consumers greatly benefit from the utilization of quality replacement parts and a competitive marketplace. There are clearly broader issues related to the validity of design patents in the collision industry, and they need to be addressed. The International Trade Commission's determination was not surprising and we intend to vigorously defend our position on behalf of our shareholders and consumers. We look forward to a successful resolution of this matter," said Rick Keister, chief executive officer of Keystone.

Keister indicated that parts currently offered by Keystone related to this ruling represented less than 0.1 percent of the company's total sales in fiscal 2007.

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