Safelite Issues Formal Statement on Court Ruling

Safelite responded publicly to Friday's ruling in the court case brought by the IGA (see glassBYTES, 8/29/05 Ruling in IGA v. Safelite Case: Judge Allows Anti-Steering Suit to Go Forward, Dismisses Other Claims and 8/30/05 IGA Speaks Out on Judge's Ruling) yesterday, issuing the following statement:

Columbus, Ohio-August 30, 2005-- Safelite Group, Inc., parent company of Safelite Solutions, LLC and Safelite Fulfillment Services, Inc., is pleased with the recent ruling of the Honorable Ann D. Montgomery of the United States District Court of Minnesota in the case of Independent Glass Association, Inc., et al. v. Safelite Group, Inc., et al., (Case No. 05-238 ADM/AJB). Judge Montgomery issued a Memorandum Opinion and Order dismissing all claims made by the Independent Glass Association ("IGA") in its suit against Safelite. "We are pleased all allegations by the IGA have been soundly rejected by the court," said Mark A. Smolik, Senior Vice President and General Counsel for Safelite Group. "Although three of the claims from two other plaintiffs survived the motion, we are confident the court will ultimately dismiss them as well," added Smolik.

The lawsuit was filed in February 2005 by the IGA, a Minnesota consumer, a Nebraska consumer, and an unidentified Minnesota insurance adjuster. The Court dismissed the IGA's claims of unfair competition under the federal Lanham Act, along with its claims of common law fraud, deceptive trade practices, violation of Minnesota's Consumer Fraud Act, False Advertising Act and state insurance adjuster licensing laws.

"We are pleased the bulk of this case has been thrown out at this early stage of the litigation. We look forward to vigorously defending the Company against the few remaining claims," said Smolik. "It is unfortunate the IGA refused Safelite's suggestion that the parties work together collaboratively to resolve their concerns prior to the suit being filed," added Smolik.

Despite the IGA's claim of victory, Judge Montgomery dismissed all of its claims against Safelite. "We firmly believe the auto glass industry would be better served by focusing its time, energy and resources on the quality, service, and value it provides to consumers," added Smolik.

Columbus, Ohio-based Safelite Group is a leading provider of property and casualty claims management solutions and auto glass products and services. Safelite Group is the parent company of Safelite Fulfillment, the nation's largest provider of auto glass repair and replacement services, Safelite Glass Corp., a leading fabricator of aftermarket windshields, and Safelite Solutions, an administrator of property and casualty claims.

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