SOURCE: DIAGNOS INC. CDNX SYMBOL: DGN
UPDATE ON THE MENTOR ON CALL AGREEMENT
Montreal, Canada – October 5, 2001 – DIAGNOS Inc. (“DIAGNOS” or the “Corporation”) (DGN – CDNX) denounces the behaviour of Mentor on Call Inc. (“Mentor”) in regards to the enforcement of a licensing agreement entered into on March 6, 2001.
Pursuant to the terms and conditions of this agreement, the Corporation must pay royalties to Mentor on sales of an on-line learning platform called Mentor. According to this agreement, the Corporation’s auditors are required to prepare sales reports and the Corporation must pay royalties within 30 days after the end of each quarter following the date when commercial sales have begun.
The Corporation has not made commercial sales to date because of its involvement in pursuing software development authorized by the agreement. Consequently, according to the terms and conditions of the agreement, there is no obligation to pay royalties and provide quarterly reports.
Furthermore, to accommodate Mentor, the Corporation has provided Mentor with a report, even though the Corporation was under no obligation to do so. Despite this fact, Mentor has indicated in writing that it unilaterally considers the license terminated. The Corporation was astonished at the content of the letter knowing that it has no legal or factual grounds. On August 24, 2001, the Corporation sent a letter of demand to Mentor through its legal advisors to require Mentor to comply with the terms and conditions of the licensing agreement which remains in effect.
The Corporation strongly believes that it has complied with all the terms and conditions of the agreement and will pursue any necessary steps to protect its rights resulting from the agreement and all recourses that are available to make Mentor comply with its obligations, including, if necessary, legal proceedings against Mentor and the implicated officers.
This press release is issued at the request of the CDNX.
The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This press release contains assumptions, which represent expectations of the Corporation in connection with the facts stated herein. These assumptions imply risks and uncertainties. The current situation may
For Further Information:
Christian Dufour
Vice President, Finances DIAGNOS
Tel: (514) 906-2603
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differ from any projections presented herein. In order to evaluate the risks and uncertainties of these assumptions, the investor should obtain additional information by consulting the annual and interim financial statements of the Corporation. Warning: The reader must not base his interpretation on these assumptions. The Corporation is under no obligation to follow up on the assumptions stated herein.
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