Sullivan & Worcester Obtains $36 Million Judgment for Lojack in Breach of Technology Development Contract Case Against Clare, Inc.

Press Release, February 10, 2006

Total judgment could reach $54 million

Boston, Mass., Feb. 10 - Sullivan & Worcester LLP today announced that a jury of 14 in the Norfolk County, Massachusetts, Superior Court, returned a unanimous verdict in favor of the Firm's client LoJack Corporation (Nasdaq: LOJN), headquartered in Westwood, Massachusetts, in its breach of contract suit against Clare, Inc. (Clare), of Beverly, Massachusetts. Clare is a wholly owned subsidiary of IXYS Corporation (Nasdaq: SYXI). The case was co-tried by Larry Varn, partner, and Jeff Francis, associate, of Sullivan & Worcester. The jury found that Clare had breached its June 2000 technology development contract with LoJack, the premier worldwide marketer of wireless tracking and recovery systems for valuable mobile assets, and returned a verdict in favor of LoJack in the amount of $36.7 million. The firm expects that the Court will enter judgment on the verdict and add pre-judgment interest at the rate of 12% per annum from the date of breach - March 1, 2002. The firm estimates that pre-judgment interest will amount to approximately $17.3 million, for a total judgment of approximately $54 million.

Larry Varn outlined the importance of this case: "Crucial to this verdict was our ability to demonstrate the negative impact of Clare's failure to deliver a product to LoJack that met the agreed-upon specifications. As a result of Clare's failure to deliver, there were significant costs incurred in order to compensate a subsequent developer who could meet the requirements for LoJack's new product. This case also underscored the importance of setting clear milestones for technology partners at the outset of a contracted project. This way, the success or failure of a project can be measured, documented adequately, communicated to management and, as in this case, communicated to a jury drawn from the community."

LoJack contracted with Clare in June of 2000 to develop and produce a next generation LoJack stolen vehicle locator unit. It did not do so. The damages award is to compensate LoJack for the additional cost of retaining another firm to develop and produce the unit and for the higher interim product cost it incurred.

LoJack and Sullivan & Worcester LLP anticipate that Clare will appeal the judgment to the Massachusetts Appeals Court.

LoJack has a success rate of more than 90% in recovering stolen vehicles and offers its customers a money-back guarantee if a stolen vehicle is not recovered within 24 hours after being reported to law enforcement. The Company employs approximately 200 people in Massachusetts and has approximately 800 employees worldwide. It offers its product to nearly two-thirds of the population in the United States and operates in 24 countries worldwide.

Contact:
Triona Buckley (617.338.2940)
tbuckley@sandw.com

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Sullivan & Worcester LLP is a leading business law firm providing counsel to domestic and international clients ranging from Fortune 500 companies to emerging businesses. With 200 lawyers in Boston, New York and Washington D.C., the firm offers services in a wide range of areas including corporate finance; securities; litigation; mergers and acquisitions; tax; real estate; private equity and venture capital; bankruptcy; regulatory law and employment and benefits. Sullivan & Worcester is also nationally recognized for its representation of REITs and its deep expertise in energy and mutual fund law. For more information please visit www.sandw.com.