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Heelys Wins Patent Infringement Case

Thursday, November 15, 2007

Illegal Knock-Offs Forced Out of North Texas Malls

A North Texas federal court recently issued a Final Judgment in favor of a subsidiary of Dallas-based, Heelys, Inc. (Nasdaq: HLYS) in a lawsuit against a patent infringer selling knock-offs of patented Heelys wheeled footwear in shopping malls throughout the Dallas area.

The patent infringers, operating under the company name Ohayon, were ordered to cease all sales of the wheeled footwear, which were conducted at kiosks in numerous North Texas malls including Irving Mall, Valley View Center and Stonebriar Center, under the brand name "Air" and others.

"We are pleased that the federal court agreed with our position and shut Ohayon down," said Mike Staffaroni, CEO of Heelys, Inc. "We now need the mall operators to do the right thing and stop leasing kiosks to infringers."

While the malls where the fake goods were sold were not named in the suit, Staffaroni said mall operators that leased to Ohayon, including two of the nation’s largest mall developers, Simon Property Group and General Growth Properties, were warned numerous times that the products were infringing. He said he hopes this judgment will encourage mall owners and operators to keep a close watch on mall kiosk operators who may be selling dangerous or illegal items, especially with the holidays coming and Heelys remaining a popular wish-list item for kids.

Heelys does not make wheeled footwear under any brand name other than its own. Consumers should look for the Heelys logo to be certain they are getting a pair of authentic Heelys wheeled shoes.

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About Heelys, Inc.

Heelys, Inc. designs, markets and distributes innovative, action sports-inspired products under the HEELYS® brand targeted to the youth market. The Company’s primary product, HEELYS-wheeled footwear, is the patented dual-purpose footwear that incorporates a stealth, removable wheel in the heel. HEELYS-wheeled footwear allows the user to seamlessly transition from walking or running to skating by shifting weight to the heel. Users can transform HEELYS-wheeled footwear into street footwear by removing the wheel. HEELYS-wheeled footwear provides users with a unique combination of fun and style that differentiates it from other footwear and wheeled sports products.

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