Exhibit 99.1
ALIGN TECHNOLOGY REACHES AGREEMENT TO END ORTHOCLEAR LITIGATION
ORTHOCLEAR TO STOP ACCEPTING CASES, STOP IMPORTING ALIGNERS AND TRANSFER IP TO
ALIGN
SANTA CLARA, Calif., Sept. 28 /PRNewswire-FirstCall/ -- Align Technology,
Inc. (Nasdaq: ALGN), the inventor of Invisalign(R), a proprietary method of
straightening teeth without wires or brackets, announced today that it has
signed a Binding Settlement Term Sheet with OrthoClear, Inc., OrthoClear
Holdings, Inc., and OrthoClear Pakistan Pvt. Ltd. ("OrthoClear") to end all
pending litigation between the parties and execute a formal settlement
agreement within fifteen days. Effective immediately, OrthoClear will no
longer accept new patient cases for treatment. Upon the earlier of the Closing
of the formal settlement agreement or October 12, 2006, OrthoClear will
consent to the entry of an Exclusion Order by the International Trade
Commission (ITC), prohibiting importation of OrthoClear aligners into the
United States, and will assign and transfer to Align all intellectual property
rights with application to the correction of malocclusion.
The Binding Settlement Term Sheet includes the following terms:
-- Effective immediately, OrthoClear will stop accepting new patient cases
for treatment;
-- OrthoClear will consent to the entry of an exclusion order by the United
States International Trade Commission (ITC), enforced by the United
States Customs Service, which prevents OrthoClear from importing its
dental aligner products into the U.S., either directly or through a third
party;
-- OrthoClear and Zia Chishti, its CEO, and Charlie Wen, its President, will
transfer and assign to Align all intellectual property rights with
application to the treatment of malocclusion;
-- OrthoClear principals Zia Chishti, Charlie Wen, Peter Riepenhausen, and
Christopher Kawaja will sign 5-year, global non-compete agreements in the
field of removable aligner therapy products and related software market;
-- OrthoClear employees Joe Breeland and Jeff Tunnell will sign 5-year U.S.
non-compete agreements prohibiting their personal participation in the
removable aligner therapy product and related software market;
-- Align will make Invisalign treatment available to OrthoClear patients in
the United States, Canada and Hong Kong at no charge from Align;
-- The Parties will dismiss all pending litigation against each other and
release all related claims;
-- Align will make a one-time cash payment of $10 million to OrthoClear
Holdings, Inc.
"This resolution achieves all of Align's litigation objectives and allows us
to fully focus the Company's energies and resources on providing innovative
products and excellent service to Invisalign customers," said Thomas M.
Prescott, Align President and Chief Executive Officer. "We are particularly
committed to helping OrthoClear patients and their doctors minimize disruptions
in their treatment by getting started with Invisalign."
Align will pay OrthoClear an additional $10 million if, at or prior to the
Closing of the formal settlement agreement, OrthoClear obtains requisite
approval from its shareholders to discontinue all design, manufacture, marketing
and sales of removable dental aligners worldwide. If at the Closing OrthoClear
does not have the requisite shareholder approval, Align will place $10 million
in escrow for a period of 30 days. If OrthoClear obtains and certifies the
requisite shareholder approval on or prior to the 30th day, the escrowed amount
plus accrued interest will be released to OrthoClear. If OrthoClear does not
certify that it has shareholder approval by the 30th day, all escrowed funds
will be returned to Align and Align shall have no further payment obligation.
The Binding Settlement Term Sheet is the result of a settlement conference
mandated and supervised by an administrative law judge as part of pre-trial
proceedings in the ITC action against OrthoClear. There has been no finding of
wrongdoing by any Party or by Joe Breeland, Zia Chishti, Christopher Kawaja,
Ross Miller, Peter Riepenhausen, Jeff Tunnell or Charlie Wen.
Align Technology will host a conference call and web cast on Thursday,
September 28, 2006 at 8:30 a.m. EDT / 5:30 a.m. PDT. To access the web cast
please visit the Investor Relations section of Align Technology's website at
investor.aligntech.com. To access the conference call, please dial
+1-201-689-8341 approximately fifteen minutes prior to the start of the call. If
you are unable to listen to the call, an archived web cast will be available
beginning approximately one hour after the call's conclusion and will remain
available through 5:30 p.m. EDT on October 25, 2006. Additionally, a telephonic
replay of the call can be accessed by dialing 877-660-6853 with account number
292 followed by # and conference number 215292 followed by #. The replay may be
accessed from international locations by dialing +1-201-612-7415 and using the
same account and conference numbers referenced above. The telephonic replay will
be available through 5:30 p.m. EDT on October 10, 2006.
About Align Technology, Inc.
Align Technology designs, manufactures and markets Invisalign, a proprietary
method for treating malocclusion, or the misalignment of teeth. Invisalign
corrects malocclusion using a series of clear, nearly invisible, removable
appliances that gently move teeth to a desired final position. Because it does
not rely on the use of metal or ceramic brackets and wires, Invisalign
significantly reduces the aesthetic and other limitations associated with
braces. Invisalign is appropriate for treating adults and older teens. Align
Technology was founded in March 1997 and received FDA clearance to market
Invisalign in 1998.
To learn more about Invisalign or to find a certified Invisalign doctor in
your area, please visit www.invisalign.com or call 1-800-INVISIBLE.
SOURCE Align Technology, Inc.
-0- 09/28/2006
/CONTACT: investors, Barbara Domingo of Align Technology, Inc.,
+1-408-470-1000, or investorinfo@aligntech.com; or Shannon Mangum Henderson of
Ethos Communication, Inc., +1-678-540-9222, or align@ethoscommunication.com,
for Align Technology/
/Web site: http://www.invisalign.com/
(ALGN)