Aug. 30, 2001: CHROMALINE ENTERS EUROPEAN ALLIANCE WITH AICELLO

Duluth, MN—The Chromaline Corporation [Nasdaq CMLH], a leading developer, manufacturer and global supplier of photochemical imaging systems, announced that it has entered into a strategic alliance with the Aicello Chemical Co. Ltd. of Japan for the distribution Chromaline’s PhotoBrasive sandblast photo-resist products in Europe.

Aicello was recently granted a comprehensive patent on its sandblast photo-resist technology in the United Kingdom, Germany, France, Italy, Spain and Austria. The patent, which grants Aicello broad commercial rights, was not opposed by Chromaline or any other manufacturer of these products. “Rather than oppose this patent,” said Bill Ulland, Chromaline’s CEO, “Chromaline has agreed to grant Aicello exclusive distribution rights to sell its products in the six patent protected countries and non-exclusive distribution rights in the rest of Europe.”

This arrangement allows Chromaline to introduce its new line of leadership products into Europe and to protect European users of these products from the risk of patent infringement litigation.

Aicello will be distributing the products from its offices in Moers, Germany. Chromaline will be working closely with Aicello to introduce its new products into the market and to transition sales of its existing products in the six patent protected countries.

In January of 2001, Chromaline ended a long-running patent infringement suit with Aicello. Under the resulting settlement and license agreement, Chromaline reintroduced its best selling ImagePro™ Super film in February. In May, Chromaline launched new ImagePro™ Red film, which is quickly becoming a leading edge film in the sandcarving industry. In June, Chromaline introduced B.A.T, a revolutionary blastable adhesive tape that eliminates the need for messy and unhealthy spray adhesives in the manufacturing process. These products together with Chromaline’s exclusive self-adhesive UltraPro™ film will be available through Aicello in the European market under the Aicello brand.

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