Powerweb Sues Hubbell Subsidiaries for $1 Billion; Motion to Dismiss Denied; Case Ready for Trial Next Month

  Powerweb Sues Hubbell Subsidiaries for $1 Billion; Motion to Dismiss Denied;
  Case Ready for Trial Next Month

Business Wire

PHILADELPHIA -- January 27, 2014

Powerweb Energy, Inc. announced that its lawsuit against two subsidiaries of
Shelton, CT-based Hubbell Incorporated (NYSE: HUBA/HUBB) will be ready for
trial in February 2014 (U.S.D.C., D. Conn, No. 3:12-CV-00220). The
$1,284,198,346 sought is an expert’s assessment of lost profits and residual
value under a series of intellectual property contracts.

Hubbell is one of the largest US lighting manufacturers. Powerweb sued its
subsidiaries Hubbell Lighting, Inc., which makes more than 20 brands of
lighting products, and Hubbell Building Automation, Inc., which sells
automated lighting controls. Hubbell’s subsidiaries lost the first major court
decision, when a federal judge in Connecticut denied their motion to dismiss
the lawsuit. Now they face a jury trial for misuse of information regarding
Powerweb’s Atrium, a breakthrough technology that enables lighting fixtures to
be controlled by a wireless network.

THE AGREEMENT TO LICENSE POWERWEB’S TECHNOLOGY

Atrium reduces the installation cost of lighting controls by 75% (no wires)
and can be installed in lighting fixtures when they are made or after they are
sold. Understanding the potential of this revolutionary technology, the
Hubbell companies entered into multi-year licensing and non-disclosure
agreements with Powerweb to deploy Atrium products throughout North America
under the brand name “Wi-Con.” For more than two years, Powerweb worked on a
product development team that included more than a dozen employees of the
Hubbell companies and shared patented technologies, trade secrets, and
know-how with the team’s members.

THE UNAUTHORIZED USE OF POWERWEB’S TECHNOLOGY

The Hubbell companies used Powerweb’s information to develop a system that
they call “wiHUBB” (instead of “Wi-Con”), which they are selling without any
payment to Powerweb. As a result, Powerweb has sued them for breach of
contract (Count I), breach of the duty of good faith and fair dealing (Count
II), unjust enrichment (Count III), misappropriation of trade secrets (Count
IV), misappropriation of idea (Count V), conversion (Count VI), breach of
fiduciary duty (Count VII), and unfair trade practices (Count VIII). In
November 2012, the court denied a motion to dismiss the complaint, holding
that the facts alleged were sufficient for each asserted claim. This decision
and other public court documents are available at
www.hubbellpowerweblitigation.com

POWERWEB’S CLAIM FOR DAMAGES

Powerweb’s expert, Rod P. Burkert, CPA/ABV, CVA, of Burkert Valuation
Advisors, LLC, has calculated damages to a reasonable degree of professional
certainty by projecting lost profits after deducting avoided costs and
reducing the net amounts to present value. His projected damages are
$803,365,631 for the seven-year term of the license agreement, or
$1,284,198,346 including lost residual value at expiration of the term.

ABOUT POWERWEB

Powerweb Energy, Inc. (www.2powerweb.com) is a privately held corporation
based in Philadelphia, Pennsylvania. For the past 15 years, Powerweb and
related companies have provided leading edge technology solutions and
intellectual property licenses to Fortune 500 companies focused in the energy
sectors. Clients have included General Electric, SAIC, Department of Defense,
Pepco Energy, Baltimore Gas & Electric, Long Island Power Authority, Northeast
Utilities, Conectiv Energy, Constellation Energy and PJM.

Contact:

Powerweb Energy, Inc.
Lothar Budike Jr., 610-888-9792
lbudike@2powerweb.com
www.2powerweb.com
 
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