" We would like to answer questions that are frequently asked about our Nd-Fe-B magnet patents, an provide information regarding our licenses under those patents. This information is provided for general reference purposes only, and we are not responsible or liable for any loss or damage that a party may incur as a result of its use of or reliance on this information. Any questions regarding this information should be directed to your attorney or to our Intellectual Property Department.

1. Cross-License Agreement between Sumitomo and Magnequench
   We have entered into a Cross-License Agreement with Magnequench that covers our respective Nd-Fe-B magnet patents. Under this Cross-License Agreement, we have a license under the Magnequench patents in the United States with respect to sintered Nd-Fe-B magnets. Most of our licensees are also covered by this license with respect to Nd-Fe-B patents held by Magnequench.
   
    
2. Expiration Dates of the Basic Patents held by Sumitomo and Magnequench
   Sumitomo holds many patents on Nd-Fe-B magnets and magnetic materials.
   Although some Sumitomo patents will begin to expire in 2003, other Sumitomo patents relating to Nd-Fe-B magnets will not expire until 2014.
   
   The following table shows the expiration dates only for the major composition patents at present time
    

   		JAPAN	USA	EUROPE
   SUMITOMO	Basic RE-Fe-B Composition	2003	2003*	2003
   	RE-Fe, Co-B Composition	2008	2003*	2007
   	Nd, Dy-Fe, Co-B Composition	2003	2010	2003
   	RE-Fe-B Compound	2003	2014**	..\
   	RE-Fe, Co-B Compound	2003	2014**	..\
   MAGNEQUENCH	Basic RE-Fe-B Composition	2003	2006	2004
   	Including Co	2004	2012	..\

   *Covers Nd-Fe(,Co)-B anisotropic magnetic materials.
   
   **USP 5,645,651 covers a compound having tetragonal crystal structure and is valid until July 8, 2014. The validity and enforceability of this patent were verified in the US ITC proceeding where Sumitomo and Magnequench jointly won the exclusion order. This patent applies not only to Co-containing compounds but also to compounds not including Co and/or compounds with additives such as Dy.
   
   (As noted above, questions regarding any Sumitomo patents should be directed to your attorney or to Sumitomo's Intellectual Property Department.)
   
    

3. License Agreements
    

   (1)	Expiration Dates;  The licenses expire on the last expiration date of the licensed patents.
   (2)	Territory of Sales; The licensees outside Japan are not licensed to sell in Japan. This also applies to downstream products incorporating licensed magnets. Other restrictions may apply. Please contact the relevant licensee or our Intellectual Property Department for further information.

   
    

4. Contact For further information regarding SSMC's patents and patent licenses, please contact
   Intellectual Property Department
   Sumitomo Special Metals Co,Ltd
   2-15-17 Egawa, Shimamoto-cho
   Mishima-gun 618-0013 Osaka Japan
   Fax: 011-8175-961-8167"