The Chi Machine ® is a patented name, and product. There are multiple imitations that use the name 'The Chi Machine' which is illegal. There is only one original Chi Machine ®, the Sun Ancon, distributed by HTE, created by acclaimed Japaneses scientist, Dr. Inoue.

The Original Sun Ancon Chi Machine ® creator and his exclusive distributor,
Dr. Shizuo Inoue and Hsin Ten Enterprise Chairman Gordon Pan.

HTE SETTLES ITS LAWSUIT AGAINST CELEBRITY
FARMINGDALE, New York, February 23, 2001.

Hsin Ten Enterprise USA, Inc. ("HTE USA") today announced that it has settled its lawsuit against Celebrity and its principals, Blaine Ferguson and Edward J. Sula, Jr. The suit, commenced by HTE on August 24, 2000 in the United States District Court for the Eastern District of New York, alleged that Celebrity, Ferguson, and Sula infringed U.S. Patent No. 5,107,822, U.S. Patent No. Des. 329,499, and HTE's trademark THE CHI MACHINE ®. Also at issue in the case was HTE's tortious interference claim involving Celebrity's alleged practice of building its sales force by knowingly recruiting distributors from HTE's sales network, and using HTE's confidential and proprietary information to do so.

Celebrity, Ferguson, and Sula, have discontinued their sales of Celebrity's NX-1 machine.

"HTE USA ª intends to continue to monitor the marketplace and to take appropriate legal action to protect its valuable intellectual property rights and its distributor network," said Richard Chuang, President and CEO of Hsin Ten Enterprise USA, Inc.

HTE USA is a New York based seller of health related products, including the patented THE CHI MACHINE ® therapeutic massager. NY2-1170825.1

Hsin Ten Enterprise USA, Inc. ("HTE USA") today announced that it has settled its lawsuit against Home Shopping Network, Inc. ("HSN") and Alexandria Sugaring Products Inc. ("Alexandria"). The suit, commenced by HTE USA on January 12, 2000 in the United States District Court for the Eastern District of New York, alleged that HSN and Alexandria infringed U.S. Patent No. 5,107,822 and U.S. Patent No. Des. 329,499 by the manufacture and sale of the Oxyciser and Oxyflow machines.

Under the settlement, both HSN and Alexandria have discontinued their manufacture and sale of the Oxyciser and Oxyflow machines. In addition, under the settlement, a monetary payment was made to HTE USA by both defendants.

In addition, a consent judgment was entered by the Court against Alexandria in which HTE USA's patents were held to be valid and infringed by the manufacture and sale of the Oxyciser and Oxyflow machines.

"HTE USA is pleased with the settlement and the Court's judgment and intends to continue to monitor the market place and to take appropriate legal action to protect its valuable intellectual property rights" said Richard Chuang, President and CEO of Hsin Ten Enterprise USA, Inc.

HTE USA is a New York based seller of health related products, including the patented THE CHI MACHINE ® therapeutic massager.

The New York long-arm statute provides jurisdiction in federal court in Manhattan over a Kansas company named in a patent and trademark infringement action by a New York corporation, a federal judge ruled Dec. 29 (Hsin Ten Enterprise USA Inc. v. Clark Enterprises, et al., No. 00-5878 [SAS], S.D. N.Y.).

U.S. Judge Shira A. Scheindlin of the Southern District of New York refused to dismiss claims asserted by Hsin Ten Enterprise USA Inc. against Clark Enterprises Inc. However, the judge dismissed claims against Clark Enterprises proprietor Clifford Clark for lack of jurisdiction.

Judge Scheindlin based her jurisdictional findings on the sale of the allegedly infringing product through a website operated by Clark and available to New York residents.

Hsin Ten, a New York company, has the exclusive right to manufacture, use and sell aerobic exercise machines under two patents owned by Skylite Industry Ltd. Hsin Ten also sells an "electric massage apparatus" under the mark "The Chi Machine"; Hsin Ten owns the mark.

Clark Enterprises, a Kansas company owned by Clifford Clark, began selling a machine called "The Chi Exerciser 2000" in January 2000. Hsin Ten alleged that the machine infringes the Skylite patents and that its name infringes its trademark.

Source: Mealey Publications offers attorneys case summaries, news and information in 25 areas of law. http://www.lexisone.com/news/nlibrary/n010901n.html

On October 17, 2001, Clark Enterprises, Salina, Kansas, concluded litigation. The Settlement Agreement resolved all claims between Clark Enterprises and HTE. The precise terms of the Settlement Agreement are confidential.

As part of the Settlement Agreement, Clark Enterprises is permitted to sell its passive aerobic exerciser, The Exerciser 2000 ª Model CME2K. For those interested in the exact final outcome of this litigation, contact the United States District Court for the Southern District of New York to request a copy of such.

Further References:

Hsin Ten Enterprise USA Inc. v. Clark Enterprises
http://www.nysba.info/committees/cplr/recent.html
Hsin Ten v. Clark
http://www.mealeys.com/TEC0201.html
Hsin Ten Enterprises United States v. Clark Enterprises & Clifford D. Clark
http://eon.law.harvard.edu/ilaw/Jurisdiction/Hsin_Ten_Sum.html
Intellectual Property In Cyberspace
http://cyber.law.harvard.edu/ilaw/Jurisdiction/Hsin_Ten_Sum.html
http://cyber.law.harvard.edu/ilaw/Jurisdiction/Hsin_Ten_Full.html
- December 28, 2000 - 00 CIV. 5878 (SAS) - Shira A. Scheindlin

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For The Record:

Lawsuits between rival products are unfortunately common place in American society. This information has been provided due to public interest and is not meant to be intentionally derogatory or make any negative statement regarding the quality and standards of the above mentioned companies and their products. Consumers are advised to research products in depth and draw conclusions for themselves.
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