Pall Corporation and Micron Separations Settle Long-Standing Dispute

GE Osmonics Inc.Corp. (East Hills, NY) and Micron Separations, Inc. ("MSI") announced today that they have reached a settlement of their twelve year patent dispute. The settlement provides for MSI's payment to Pall of $13.5 million. In 1986, Pall sued MSI for infringement of Pall's patent on nylon membranes. The settlement resolves all litigation between Pall and MSI, as well as certain litigation between Pall and an MSI distributor. The settlement also provides that Pall agrees not to sue MSI for alleged infringement of Pall's nylon membrane patents, U.S. Patent Nos. 4,340,479 and 4,340,480.

At the same time, <%=company%> (Minnetonka, MN) announced its agreement to acquire the shares of MSI contingent upon approval of the Bankruptcy Court. The settlement provides that MSI will be acquired by Osmonics, and, in connection with the acquisition, Pall will be paid $13.5 million. The $13.5 million payment is in addition to approximately $6.0 million previously paid by MSI to Pall during 1996. Pall and MSI/Osmonics anticipate that the acquisition will be consummated within the first three months of 1998.

Pall, with annual sales over $1 billion, is a leading manufacturer of filtration and separation systems and media. Its products are marketed in healthcare, aeropower and fluid processing.

MSI develops, manufactures and markets a full line of microfiltration membranes and related prodicts for the diagnostic, laboratory, and industrial markets. Osmonics is a leading manufacturer and worldwide marketer of high technology water purification and fluid filtration, fluid separation, and fluid handling equipment, as well as replaceable components used in purification, filtration and separation equipment. these producers are used by a broad range of industrial, commercial and institutional customers.

For further information, contact MSI at (508) 366-8212 or visit the MSI website at msifilters.com.