Align Technology Reaches Agreement to End OrthoClear Litigation

Align Technology Reaches Agreement to End OrthoClear Litigation

September 28, 2006

-- OrthoClear to Stop Accepting Cases, Stop Importing Aligners and Transfer IP to Align

    SANTA CLARA, Calif., Sept. 28 /Xinhua-PRNewswire/ --
Align Technology, Inc. (Nasdaq: ALGN), the inventor of
Invisalign(R), a proprietary method of straightening teeth
without wires or brackets, announced today that it has
signed a Binding Settlement Term Sheet with OrthoClear,
Inc., OrthoClear Holdings, Inc., and OrthoClear Pakistan
Pvt. Ltd. ("OrthoClear") to end all pending
litigation between the parties and execute a formal
settlement agreement within fifteen days. Effective
immediately, OrthoClear will no longer accept new patient
cases for treatment. Upon the earlier of the Closing of the
formal settlement agreement or October 12, 2006, OrthoClear
will consent to the entry of an Exclusion Order by the
International Trade Commission (ITC), prohibiting
importation of OrthoClear aligners into the United States,
and will assign and transfer to Align all intellectual
property rights with application to the correction of
malocclusion. 

    The Binding Settlement Term Sheet includes the
following terms:

    -- Effective immediately, OrthoClear will stop
accepting new patient cases 
       for treatment;

    -- OrthoClear will consent to the entry of an exclusion
order by the 
       United States International Trade Commission (ITC),
enforced by the 
       United States Customs Service, which prevents
OrthoClear from importing 
       its dental aligner products into the U.S., either
directly or through a 
       third party; 

    -- OrthoClear and Zia Chishti, its CEO, and Charlie
Wen, its President, 
       will transfer and assign to Align all intellectual
property rights with 
       application to the treatment of malocclusion;

    -- OrthoClear principals Zia Chishti, Charlie Wen,
Peter Riepenhausen, and 
       Christopher Kawaja will sign 5-year, global
non-compete agreements in 
       the field of removable aligner therapy products and
related software 
       market;

    -- OrthoClear employees Joe Breeland and Jeff Tunnell
will sign 5-year 
       U.S. non-compete agreements prohibiting their
personal participation in 
       the removable aligner therapy product and related
software market;

    -- Align will make Invisalign treatment available to
OrthoClear patients 
       in the United States, Canada and Hong Kong at no
charge from Align; 

    -- The Parties will dismiss all pending litigation
against each other and 
       release all related claims; 

    -- Align will make a one-time cash payment of $10
million to OrthoClear 
       Holdings, Inc. 

    "This resolution achieves all of Align's
litigation objectives and allows us to fully focus the
Company's energies and resources on providing innovative
products and excellent service to Invisalign
customers," said Thomas M. Prescott, Align President
and Chief Executive Officer. "We are particularly
committed to helping OrthoClear patients and their doctors
minimize disruptions in their treatment by getting started
with Invisalign." 

    Align will pay OrthoClear an additional $10 million if,
at or prior to the Closing of the formal settlement
agreement, OrthoClear obtains requisite approval from its
shareholders to discontinue all design, manufacture,
marketing and sales of removable dental aligners worldwide.
If at the Closing OrthoClear does not have the requisite
shareholder approval, Align will place $10 million in
escrow for a period of 30 days. If OrthoClear obtains and
certifies the requisite shareholder approval on or prior to
the 30th day, the escrowed amount plus accrued interest will
be released to OrthoClear. If OrthoClear does not certify
that it has shareholder approval by the 30th day, all
escrowed funds will be returned to Align and Align shall
have no further payment obligation.  

    The Binding Settlement Term Sheet is the result of a
settlement conference mandated and supervised by an
administrative law judge as part of pre-trial proceedings
in the ITC action against OrthoClear. There has been no
finding of wrongdoing by any Party or by Joe Breeland, Zia
Chishti, Christopher Kawaja, Ross Miller, Peter
Riepenhausen, Jeff Tunnell or Charlie Wen. 

    Align Technology will host a conference call and web
cast on Thursday, September 28, 2006 at 8:30 a.m. EDT /
5:30 a.m. PDT. To access the web cast please visit the
Investor Relations section of Align Technology's website at
investor.aligntech.com. To access the conference call,
please dial [phone] approximately fifteen minutes
prior to the start of the call. If you are unable to listen
to the call, an archived web cast will be available
beginning approximately one hour after the call's
conclusion and will remain available through 5:30 p.m. EDT
on October 25, 2006. Additionally, a telephonic replay of
the call can be accessed by dialing 877-660-6853 with
account number 292 followed by # and conference number
215292 followed by #. The replay may be accessed from
international locations by dialing [phone] and
using the same account and conference numbers referenced
above. The telephonic replay will be available through 5:30
p.m. EDT on October 10, 2006.

    About Align Technology, Inc.

    Align Technology designs, manufactures and markets
Invisalign, a proprietary method for treating malocclusion,
or the misalignment of teeth. Invisalign corrects
malocclusion using a series of clear, nearly invisible,
removable appliances that gently move teeth to a desired
final position. Because it does not rely on the use of
metal or ceramic brackets and wires, Invisalign
significantly reduces the aesthetic and other limitations
associated with braces. Invisalign is appropriate for
treating adults and older teens. Align Technology was
founded in March 1997 and received FDA clearance to market
Invisalign in 1998.

    To learn more about Invisalign or to find a certified
Invisalign doctor in your area, please visit
http://www.invisalign.com or call 1-800-INVISIBLE.

    For more information, please contact:

    Investors

     Barbara Domingo
     Align Technology, Inc.
     Tel:   [phone]
     Email: [e-mail]

     Shannon Mangum Henderson
     Ethos Communication, Inc.
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Align Technology, Inc.