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Underground Solutions Obtains Injunction Against PolyPipe, Inc. in Libel Lawsuit


Poway, CA (September 24, 2008) - A Texas court issued an order yesterday, September 23, 2008, permanently enjoining PolyPipe, Inc., a manufacturer of HDPE pipe products, from distributing certain materials attacking Underground Solutions™ Fusible PVC™ pipe products. The court in Harris County, Texas acted in response to a request from Underground Solutions.

Underground Solutions filed suit following its recent discovery that employees of PolyPipe were distributing copies of a press release and associated materials that Underground Solutions contends are defamatory. The materials that PolyPipe is now prohibited from distributing were originally prepared by the Plastics Pipe Institute (PPI), the trade association for the HDPE pipe industry. The documents that PolyPipe admitted distributing at a September trade show in Dallas, Texas included a press release and webinar advertisement, both issued by PPI in June of this year, attacking Underground Solutions™ Fusible PVC™ pipe products. PPI publicly retracted the press release and all of its contents in August, a month prior to the date of PolyPipe's actions.

"We were shocked to discover that PolyPipe was publicly distributing a press release that it knew had been retracted," stated Andy Seidel, the President and CEO of Underground Solutions, "and we acted quickly to ensure that it would not happen again." Seidel continued, "We believe in competition, but we expect our competitors to act fairly and in accordance with applicable legal requirements. Distributing a press release that PolyPipe knew had been retracted by its own author was not only wrong legally, but it reflects poorly on the entire pipe industry."

The lawsuit against PolyPipe is the second lawsuit that Underground Solutions has been forced to initiate against HDPE competitors in response to attacks that Underground Solutions contends are false and malicious. Underground Solutions is also suing P&F Distributors, a Northern California-based distributor of HDPE products, alleging similar conduct. That lawsuit is currently pending in California state court.

Underground Solutions provides infrastructure technologies for water and wastewater applications. Underground Solutions™ Fusible PVC™ products, including Fusible C-900®, Fusible C-905® and FPVC®, contain a proprietary PVC formulation that, when combined with Underground Solutions™ patented fusion process, results in a monolithic, fully-restrained, gasket-free, leak-free piping system. Underground Solutions™ Duraliner™ is a patented, close-fit pipeline renewal system creating a stand-alone structural liner.

Contact Information: Stephen Stanczak of Underground Solutions, Inc. phone: 760/690-3849; email: info@undergroundsolutions.com

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