August 22, 2007, Worcester MA.  Biosource today announced that on July 10, 2007, it issued a notice to Enpar Tecnologies Inc., terminating the nonexclusive patent license agreement which has permitted Enpar since December of 2002 to market products covered by Biosource patents directed to Flow-Through Capacitor (FTC) capacitive deionization technology.  Biosource terminated Enpar’s license based on the results of a royalty audit conducted by a Canadian chartered independent accounting firm.  Enpar disputes the findings of the auditors.  On July 31, 2007, Enpar filed a demand for arbitration with the American Arbitration Association (AAA) seeking declaratory relief that the notice of termination is a nullity and that the nonexclusive license agreement is in good standing and in full force.  Biosource also filed a demand for arbitration with the AAA, seeking enforcement of the notice of termination and seeking damages relating to those breaches of the license which gave rise to its termination. 

Biosource is the owner of a worldwide patent portfolio directed to flow-through capacitor (FTC) technology, by which ions are removed from liquids by passage of the liquid through electrical capacitors.  Enpar develops, markets, and sells FTC electrochemical desalinization technology licensed from Biosource under the mark “DesEL”.