KBC Kbc Adv.Tech.

RNS Number:9966X
KBC Advanced Technologies plc
26 April 2004


                         KBC Advanced Technologies plc

                    Announcement of UK Arbitration Decision

On 22 April 2004, the Arbitrator, Mr Philip Naughton QC released a further
decision in relation to the binding arbitration process between KBC Advanced
Technologies plc ("KBC") and AEA Technology PLC ("AEAT"). The award made the
following determinations:

* That KBC validly terminated the development agreement for material
  breach by AEAT;

* That KBC is entitled to obtain from escrow the source code for
  HYSYS.Refinery for it to use without limit of time on a royalty free basis;

* That for a period of 3 years from the date of the award, Hyprotech
  Company (('Hyprotech') a former subsidiary of AEAT, now owned by Aspen
  Technologies Inc ('Aspen')) shall not develop, sell or market RefSYS or any
  other product which competes with HYSYS.Refinery, and/or KBC's Models and/or
  CAMS;
 
* That until further notice Hyprotech may not communicate information not
  publicly available regarding HYSYS.Refinery to Aspen or any other third
  party.

These decisions represent a very good result for KBC and were granted in its
favour on all aspects of the arbitration heard in March 2004. Whilst this
vindicates the action taken by KBC to protect its rights, it remains for KBC to
take further action to reflect the full benefit of these decisions. Further
announcements regarding the status of the enforcement of this award will be made
as significant events occur.

Contacts

KBC Advanced Technologies plc

Peter Close/Nicholas Stone        01932 236314

Weber Shandwick Square Mile

Mike Kirk                         020 7067 0759


Notes:

1. RefSYS is a jointly developed software product for refinery-wide simulation
and optimization announced by Aspen and UOP LLC in August 2003. RefSYS was found
by the Arbitrator to be an enhancement of HYSYS.Process, an existing product
sold by Hyprotech.

2. KBC and AEAT entered into a joint development agreement in March 1999 to
develop a software product, HYSYS.Refinery. In February 2002 KBC and AEAT were
unable to reach agreement over the definition of the product developed under the
agreement and other rights associated with that product. In order to reach a
resolution, KBC initiated arbitration proceedings against AEAT. Following a
partial award on these proceedings on 31 March 2003 and the failure of AEAT to
comply with the Arbitrator's orders contained therein and its contractual
obligations, KBC terminated the agreement in June 2003 for material breach.
There was a further hearing in March 2004 to determine the validity and
consequences of the termination.




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