Cybex International, Inc. announced that two litigation matters are now complete. The Free Motion patent litigation is being dismissed with prejudice pursuant to a settlement agreement between the parties. As part of the settlement, Cybex is receiving a license of certain Free Motion patents and is paying an upfront license fee. Cybex also indicated that the amount of the judgment in the Kirila matter has been finally determined by the Court and has been fully satisfied by the Company.
While Cybex has not completed its analysis of whether the above litigation events will result in an increase to its litigation reserves, it anticipates that any increase to the reserve would result in a pre-tax charge of less than $200,000, and would be recognized in the quarter ended December 31, 2006.
