Court Denies Maxwell Technologies, Inc.’s Motion for Preliminary Injunction Against NessCap

Seoul, South Korea -- NessCap Co., Ltd. ("NessCap"), a privately held company recognized as a global leader in ultracapacitor technology, product development, sales, and manufacturing announced today that the U.S. federal district court in the Southern District of California (San Diego) has issued an order denying Maxwell Technologies, Inc.'s request for a preliminary injunction. The order states that Maxwell has not established a likelihood of success in the patent infringement action it filed against NessCap and its U.S. parent company, NessCap, Inc., in October 2006, accusing NessCap's ultracapacitor products of infringing Maxwell's U.S. Patent No. 6,631,074. As a result, U.S. District Judge John A. Houston ruled that a preliminary injunction will not issue, thus allowing NessCap to continue making, using, selling, or offering to sell its non-prismatic ultracapacitors in the United States while the litigation is pending.

Specifically, the court stated that Maxwell "has not met its burden of showing that the accused devices fall within the limitations of Claim 1 of the '074 patent." The court reached this conclusion after conducting two days of hearings and NessCap submitting thousands of pages of documentation.

In related litigation, NessCap has appealed the previous preliminary injunction issued against it last April regarding certain of its prismatic devices. NessCap firmly believes that this injunction was issued in error. The Court of Appeals for the Federal Circuit in Washington, D.C. will likely hear this appeal before the end of this calendar year. Also, in December 2006, NessCap sued Maxwell for infringement of NessCap's U.S. Patent No. 6,743,544 regarding Maxwell's C and D cell ultracapacitor products. A hearing in that case is scheduled for mid-September in federal district court in San Diego.

"I wholeheartedly believe that NessCap has not infringed any of Maxwell's patents," said Robert Tressler, who recently joined NessCap as Sr. Vice President/General Manager after leaving Maxwell in late 2005. "NessCap has its own cutting edge technology and is solely focused on bringing that technology into the mainstream."

"We are very grateful to Judge Houston and the court's keen insight in denying Maxwell's request for a preliminary injunction," said Dr. Sunwook Kim, NessCap's founder and chairman of the Board. "As I stated last October, we do not understand Maxwell's motivation in bringing these claims against us, but we will continue to defend ourselves vigorously and I believe that we will prevail."

NessCap is represented in the lawsuit by Edwards Angell Palmer & Dodge LLP.

NessCap is a global leader in technology innovation and product development of ultracapacitors. We feature the widest array of standard commercial products in the market from 3 farads to 5000 farads with industry recognized alternative organic electrolytes. Our NessCap products are available in both cells and modules for the transportation, power and consumer markets. Technical and sales information can be found at www.nesscap.com.