Copart To Defend VB2 in Manheim Lawsuit

June 23, 2005

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ATLANTA (June 23, 2005) -- Copart Inc. announced it is planning a vigorous defense of the lawsuit filed earlier this month by Manheim, alleging Copart's VB2 and related products are a patent infringement of Manheim's "Electronic On-Line Motor Vehicle Auction and Information System" patent.

Copart's general counsel acknowledged that Copart has been named in a patent infringement suit filed by Manheim on June 10. He said that Copart's "preliminary assessment is that Manheim's complaint is without merit, and that Copart intends to vigorously defend its position."

This is the third such lawsuit in recent months. Auction Management Solutions sued Manheim in early March, alleging that Manheim's online auto auction system infringes on AMS' OnLine Ringman. Manheim later filed a counterclaim, which alleged that AMS' online auction system actually infringed on Manheim's patent. The patent cited in its lawsuit against AMS is also cited in the Copart lawsuit.

According to the lawsuit filed against Copart, Manheim is seeking a judgment permanently enjoining Copart from "making, using, selling, offering to sell, or importing any product or service, including but not limited to its VB2 auction Web site, that infringes or induces or contributes to the infringement of the '873 (No. 5,774,873) patent."

Additionally, Manheim has requested a jury trial. In its lawsuit, the company said it is seeking a judgment awarding damages and attorneys' fees for the alleged patent infringement.

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