Mindray Announces Settlement of Previously Described Masimo Related Litigation

Mindray Medical International Limited (the "Company", NYSE: MR), a leading developer, manufacturer and marketer of medical devices worldwide, announced today that the company and various of its subsidiaries (collectively, "Mindray"), have entered into a Settlement and Covenant Not to Sue Agreement with Masimo Corporation and various of its subsidiaries (collectively, "Masimo") whereby Mindray and Masimo have each agreed to settle and dismiss, as applicable, their patent, contract and anti-trust claims and counterclaims in the U.S. and China against each other and entered into a patent-related covenant not to sue. Pursuant to the settlement, among other things, Mindray has agreed, subject to limited exceptions, that from the settlement date through December 31, 2027 it will purchase all pulse oximetry technology components for Mindray patient monitoring products sold in the U.S. and Canada from Masimo (Masimo is already Mindray's primary supplier of these components for sales in the U.S.). In addition, Mindray has agreed to pay Masimo $25 million (to be paid in full by mid-January 2016) and assigned to Masimo certain patents (covering areas not practiced in Mindray's products). Mindray expects a related Q4 2015 charge of $15.3 million (with $9.7 million previously accrued in 2012), and it has determined these arrangements are immaterial to its operations as a whole and will not adversely impact its business.