VirnetX Announces Patented Technology Solutions to Internet Fundraising Scams

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Jan 19, 2010, 07:30 ET

SCOTTS VALLEY, Calif., Jan. 19 /PRNewswire-FirstCall/ -- VirnetX Holding Corporation (NYSE Amex: VHC), www.virnetx.com, a California-based secure real-time communications technology company, announced today that its patented technology portfolio, derived from a Central Intelligence Agency (CIA) security project, could be used to help stop Internet fundraising scams associated with disasters like the recent earthquake in Haiti or Hurricane Katrina.

"The Internet is wide open to cyberattacks of all kinds," said Kendall Larsen, President and CEO of VirnetX. "In the tragic humanitarian crisis in Haiti, as a number of related web domains go live many are likely being used maliciously, as has been the case with other disasters such as Hurricane Katrina, with opportunists using the domains to set up fake charity sites used for phishing. Cybervandals are also launching malicious 'text-to-donate' scams and promoting fake videos about the disaster, using them to trick individuals into installing malware. Social networks, such as Facebook, are also vulnerable to fundraising breaches."

VirnetX's technology portfolio, in which 23 of its patents and 28 of its patent applications pertain to 4G security standards, locate and securely communicate over the Internet using Secure Domain Names issued by its proprietary Secure Domain Name Registry. This technology can be built into network infrastructure, current operating systems or silicon chips developed for any type of Internet communications device like Smartphones, laptops or PDAs. VirnetX is commercializing its patent portfolio by developing a licensing program that will allow its technology to be used by such organizations as Internet Service Providers and mobile phone carriers. VirnetX is developing its own secure peer-to-peer network using its GABRIEL Connection Technology, which it is making available for public Beta testing in 2010.

The federal government has recognized the importance of a "Secure Domain Name Addressing System," in Senate Bill 773: Cybersecurity Act of 2009 introduced last spring to ensure the continued free flow of commerce within the U.S. and with its global trading partners through secure cyber communications.

"VirnetX believes its patented technologies will help secure the Internet from fraud of all kinds and strengthen the Cybersecurity Act's implementation," said Larsen.

About VirnetX

VirnetX Holding Corporation, a secure real-time communications and collaboration technology company, is engaged in commercializing its patent portfolio 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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Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "anticipates," or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission, including those under the heading "Risk Factors" in the Company's Annual Report on Form 10-K filed with the SEC on March 31, 2009 and most recently in the Company's Quarterly Report on Form 10-Q filed with the SEC on November 9, 2009.