Align Technology Announces Settlement with Ormco to End Patent Litigation

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Mon Aug 17, 2009 8:18am EDT

Companies to Collaborate on a Next Generation Combination Product






SANTA CLARA, Calif., Aug. 17 /PRNewswire-FirstCall/ -- Align Technology, Inc.
(Nasdaq: ALGN) today announced that it has reached a settlement with Ormco
Corporation (Ormco), a subsidiary of Danaher Corporation (NYSE: DHR), to end
all pending litigation between the parties and to begin a new strategic
collaboration. As part of the settlement, Align will make a cash payment of
approximately $13 million to Ormco and issue approximately 7.6 million shares
of Align's Common Stock to Danaher Corporation, Ormco's ultimate parent, that
after issuance will be equal to approximately ten percent ownership interest
in Align.  Based on the closing price of Align's Common Stock on Friday,
August 14, 2009 the value of the shares is approximately $77 million. The
issuance of a portion of the shares is subject to clearance under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. For a
summary of the terms of the transaction, please refer to the Company's Form
8-K filed today.

Align and Ormco have also agreed upon an exclusive collaboration over the next
seven years to develop and market an orthodontic product that combines the
Invisalign(R) system with Ormco's Insignia(R) orthodontic brackets and arch
wires system to treat the most complex cases. Each party will retain ownership
of its pre-existing intellectual property, and each party will be granted
intellectual property licenses in their respective field for jointly-developed
combination products. 

"We are pleased to resolve this ongoing litigation with Ormco and to begin a
new relationship that meets our shared goals of providing innovative products
and excellent service to our orthodontic customers," said Thomas M. Prescott,
Align Technology president and CEO. "This collaboration with Ormco, a fellow
innovator in digital orthodontics, gives us the ability to compete for a
segment of the market that is difficult to treat with Invisalign alone, and
accelerates our long-term plan for a combination product."

Per the terms of the agreement, Ormco and Align have requested that judgment
be entered on the claims resolved by the jury and all remaining claims in the
litigation between the two parties be dismissed with prejudice. Additionally,
as part of the settlement agreement, Ormco has agreed to release all past
claims asserted by Ormco against Align based upon the '444 patent and has
agreed not to sue Align for any claim of infringement based upon the '444
patent as a result of Align's relating to removable aligners.

About Align Technology, Inc.
Align Technology designs, manufactures and markets Invisalign, a proprietary
method for treating malocclusion, or the misalignment of teeth. Invisalign
corrects malocclusion using a series of clear, nearly invisible, removable
appliances that gently move teeth to a desired final position. Because it does
not rely on the use of metal or ceramic brackets and wires, Invisalign
significantly reduces the aesthetic and other limitations associated with
braces. Invisalign is appropriate for treating adults and teens. Align
Technology was founded in March 1997 and received FDA clearance to market
Invisalign in 1998. Today, the Invisalign product family includes Invisalign,
Invisalign Teen, Invisalign Assist, Invisalign Express, and Vivera Retainers. 

To learn more about Invisalign or to find a certified Invisalign doctor in
your area, please visit www.invisalign.com or call 1-800-INVISIBLE.

    Investor Relations Contact            Press Contact
    Yin Cantor                            Shannon Mangum Henderson
    Align Technology, Inc.                Ethos Communication, Inc.
    (408) 470-1044                        (678) 261-7803
    ycantor@aligntech.com                 align@ethoscommunication.com



SOURCE  Align Technology, Inc.

Investors, Yin Cantor, Align Technology, Inc., +1-408-470-1044,
ycantor@aligntech.com; or Press, Shannon Mangum Henderson, Ethos
Communication, Inc., +1-678-261-7803, align@ethoscommunication.com
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