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January 23, 2006
Dear Customers:
Nellcor is pleased to announce that it has reached a settlement agreement with Masimo regarding all pending
patent litigation between the two companies. Under the terms of the agreement, all active cases will be
dismissed.
This is good news for Nellcor. You can continue to rely on us as you always have without the distraction or
disruption of legal action between suppliers. We are free to sell our new line of pulse oximetry products
and will continue to expand our acclaimed OxiMax® pulse oximetry system—the platform
for the future.
We are focused on a successful launch of the OxiMax N-600™ pulse oximeter, along
with other related standalone, handheld and OEM (original equipment manufacturer) module products to meet
your pulse oximetry needs. The OxiMax system delivers excellent performance, even in the difficult
monitoring conditions of low perfusion and signal interference, including patient motion.
The new monitoring products give you access to the broadest sensor choice in the industry since they are
fully compatible with the complete line of OxiMax adhesive, reusable and specialty sensors. The
new OxiMax products have the same dimensions and user interface as previous models, so they will
integrate seamlessly into existing fleets without requiring additional staff training.
Additionally, the OxiMax platform has enabled us to expand the accuracy specification for our
OxiMax adhesive sensors to include a wider range of SpO2 levels (now down to 60%).
LoSat™ expanded accuracy allows improved patient assessment at the more challenging lower
saturation levels as is common in congenital heart disease (CHD) infants.
Please note that as a result of this settlement, an injunction that had been expected in the U.S. will
not occur. However, in most countries after January 31, 2006, Nellcor will no longer ship the specific
pulse oximetry products at issue in the patent litigation. In Asia and Latin America Nellcor is allowed
an additional time period in order to accommodate the regulatory approval process for new products.
Existing monitors will not need to be returned or modified, and we will continue to provide service and
support for those products.
The OxiMax N-600 pulse oximeter has already been launched in the U.S. and the other new
OxiMax products will be available soon. To learn more about how Nellcor pulse oximetry products
can improve patient safety monitoring throughout the healthcare environment, please contact your
local sales representative or call us at 1-800-NELLCOR.
Sincerely,
David Sell
President
Nellcor Monitoring
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