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3/19/2010
04:35 PM
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VirnetX Patent Claims Confirmed Valid In VPN Technology Dispute With Microsoft

U.S. Patent Office confirms three claims

SCOTTS VALLEY, Calif., March 19 /PRNewswire-FirstCall/ -- VirnetX Holding Corporation (NYSE Amex: VHC), a secure real-time communications and collaboration technology company, today announced that the United States Patent and Trademark Office (USPTO), in a letter dated January 19, 2010, confirmed the validity of three claims of U.S. Patent No. 7,188,180 that are at issue in its patent infringement suit against Microsoft.

In a lawsuit filed February 2007, VirnetX alleged that Microsoft willingly infringed two of its U.S. Patent Nos. 6,502,135 and 7,188,180 by including virtual private network (VPN) technology in Microsoft's Windows and Office Communications Server products. Microsoft requested a reexamination of the two VirnetX patents in December 2009.

On March 16, 2010, a jury awarded VirnetX a $105,750,000 verdict against Microsoft Corporation for infringing the same two VirnetX patents. The Jury also found that the asserted claims of the VirnetX patents were valid and that Microsoft's patent infringement was willful. VirnetX will request injunctive relief.

On March 17, 2010, VirnetX filed a new motion against Microsoft alleging infringement of U.S. Patent Nos. 6,502,135 and 7,188,180 by Microsoft's Windows 7 and Windows Server 2008 R2 software products.

"In light of recent news coverage, we want to be clear that the USPTO has already confirmed three of our claims as valid and we believe the rest of the claim reexamination process will favor us," said Kendall Larsen, VirnetX President and CEO. "We believe in the validity of the patents in our suit with Microsoft and are confident that the USPTO will uphold them."

About VirnetX

VirnetX Holding Corporation, a secure real-time communications and collaboration technology company, is engaged in commercializing its patent portfolio, derived from a Central Intelligence Agency security project, by developing a licensing program, as well as developing software products designed to create a secure environment for real-time communications such as instant messaging and Voice over Internet Protocol. The Company's patent portfolio includes over 48 U.S. and international patents and pending applications which provide the foundation for the Company's unique GABRIEL Connection Technology. For more information, please visit www.virnetx.com

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