VirnetX Awarded $105.75 Million Judgment Against Microsoft

Jury Finds Microsoft Infringement Willful, Injunctive Relief Still To Be Decided

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Mar 16, 2010, 08:58 ET

SCOTTS VALLEY, Calif., March 16 /PRNewswire-FirstCall/ -- VirnetX Holding Corporation (NYSE Amex: VHC), a secure real-time communications and collaboration technology company, today announced that the Jury has awarded VirnetX a $105,750,000 judgment against Microsoft Corporation for infringing two VirnetX patents. The Jury also found that Microsoft's patent infringement was willful. VirnetX will request injunctive relief at a later date. VirnetX expects Microsoft to appeal this decision and will vigorously defend its rights in any appeal.

"We are extremely pleased with the Jury's decision," said Kendall Larsen, VirnetX President and CEO. "Receiving a nine figure award is tremendous and verifies our belief that our patents are foundational and important. We look forward to the appeals process as further validation of our patents. With this landmark decision behind us, we can now fully concentrate on our licensing program, Secure Domain Name Registry, essential 4G security patents, and Gabriel Connection Technology Beta."

The patents determined to have been infringed in this case were U.S. Patent No. 6,502,135 B1, entitled "Agile Network Protocol for Secure Communications with Assured System Availability" and U.S. Patent No. 7,188,180 B2, entitled "Method for Establishing Secure Communication Link Between Computers of Virtual Private Network."

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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