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KNOWLES ELECTRONICS ALLEGES UNFAIR TRADE PRACTICES

Company Files Multi-million Dollar Lawsuit;
Theft of a Major New Technology Alleged

ITASCA, IL - November 15, 2006 - Knowles Electronics, LLC, the leading global manufacturer of high performance, subminiature microphones and speakers serving a variety of applications and markets, announced today that it has filed a multi-million dollar lawsuit against American Audio Components (AAC).

The suit also names a company providing consulting services to AAC and a series of others alleging violation of the Illinois Trade Secrets Act and Knowles right to be free of unfair competition and exploitation. The lawsuit was filed in the US District Court for the Northern District of Illinois Eastern Division.

The lawsuit alleges that AAC engaged in a purposeful concert of action to obtain secret manufacturing choices and procedures, and production specifications, relating to this new and proprietary technology, which Knowles estimates to be worth over a billion dollars in sales over the next several years. The lawsuit further alleges that AAC failed to adhere to "fair competition or its own research and development" and instead engaged in a devious plot to improperly obtain Knowles trade secrets and proprietary information, and the targeting and poaching of key employees.

Knowles welcomes vigorous competition in the global economy but that competition must be based on fairness," said John Zei, president and CEO of Knowles Electronics. Fairness is the foundation that makes possible international trade and buttresses a competitive environment that encourages innovation. Unfortunately, in this circumstance, AAC has rejected fair competition in favor of unfair trade practices. As a result, Knowles had no choice other than to initiate this lawsuit.

The technology at issue relates to a silicon microphone which consists of a semiconductor element, a microphone diaphragm made of silicon produced using the Micro-Electro-Mechanical Systems, or "MEMS," process, and a unique and proprietary packaging system combining all in a single device.

The technology is "disruptive", and is a revolutionary development within its industry since it significantly improves manufacturability, environmental stability and reliability, and reduces assembly costs while significantly reducing the size of the microphone. Knowles sells the patented silicon microphone under the trade name "SiSonic" and its end uses include cell phones, digital cameras, PDAs, laptops and other consumer electronic devices.

About Knowles Electronics, LLC:

Knowles Electronics is the world's leading manufacturer of miniature audio transducers, microphones, receivers, electromechanical controls, and accessories for the hearing health industry and multiple consumer and industrial markets. For more than fifty years, Knowles has researched, designed, developed, and delivered technologically advanced acoustic products that improve people's lives. More information about Knowles Electronics can be obtained by visiting http://www.knowles.com.

从这篇报道上看，楼氏只是指责AAC窃取关于生产制造MEMS的商业机密。而具体的行为似乎只有挖走关键员工。这个似乎太普遍了。

个人觉得楼氏有一两个竞争对手似乎个好一些。现在不少公司对于MEMS技术还是持观望态度，因为全球只有一家供应商，而且产能被MOTO订了80%。

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