Toyoda Gosei Co., Ltd. (“Toyoda Gosei”) and Epistar Corporation(“Epistar”) entered a cross license agreement to allow the companies (including subsidiaries) to use each other’s patents for specific technologies in Group III-V compound semiconductor light emitting diodes (“LEDs”), which include blue LEDs and red LEDs.

Epistar holds valuable patents for AlGaInP LEDs and InGaN LEDs. Toyoda Gosei likewise holds a number of valuable patents for InGaN LEDs. Epistar and Toyoda Gosei agreed to construct an environment wherein they will respect and mutually utilize each other’s technologies in order to further advance the market for LED products.

This agreement will allow both Epistar and Toyoda Gosei significantly more freedom in their development efforts by eliminating the need for concern about each other’s patents. By facilitating research at both companies, new developments in LED technology are anticipated, including an acceleration of research to improve the luminosity of LEDs.

Toyoda Gosei and Epistar each intend to maintain a friendly business relationship and pursue the development of superior high-luminosity LEDs and further expansion of the LED market through fair competition.