United States Court of Appeals Dismisses $10 Million Lawsuit Against Franklin Capital Corporation

7 June 2005

Patient Safety Technologies, Inc. (AMEX:PST) announced today that in a June 1, 2005 order, the United States Court of Appeals for the Second Circuit affirmed the dismissal of claims of Jeffrey Leve Family Limited Partnership, L.P. against Franklin Capital Corporation (n.k.a Patient Safety Technologies, Inc.).

On October 15, 2001, Jeffrey A. Leve and Jeffrey Leve Family Partnership, L.P. filed a lawsuit (the "Leve Lawsuit") against the Company, Sunshine Wireless, LLC ("Sunshine"), and four other defendants affiliated with Winstar Communications, Inc. ("Winstar"). On February 25, 2003, the case against the Company and Sunshine was dismissed, however, on October 19, 2004, Jeffrey A. Leve and Jeffrey Leve Family Partnership, L.P. exercised their right to appeal. The initial lawsuit alleged that the Winstar defendants conspired to commit fraud and breached their fiduciary duty to the plaintiffs in connection with the acquisition of the plaintiff's radio production and distribution business. The complaint further alleged that the Company and Sunshine joined the alleged conspiracy. The plaintiffs sought recovery of damages in excess of $10,000,000, costs and attorneys' fees.

"We are extremely gratified by the Court's ruling," stated Todd Ault, III, Chairman and CEO of Patient Safety Technologies, Inc. "With the dismissal of this suit, we are now able to further focus on achieving our objectives in patient safety and maximizing the value of our non-core assets."

Patient Safety Technologies, Inc. (PST) is a developer, manufacturer and content provider of patient safety products and services, working toward becoming the leader in the patient safety field. Headquartered in Santa Monica, California, the company's flagship product is its Safety-Sponge (tm) System, which allows for faster and more accurate counting of surgical sponges.

Source: PrimeZone

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