VirnetX Chief Expects Secure Domain Name Pilot with Leading 4G Companies to Move into Production in 2011

First of Many "License to the Titans"

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Jul 21, 2010, 09:00 ET

SCOTTS VALLEY, Calif., July 21 /PRNewswire-FirstCall/ -- VirnetX Holding Corporation (NYSE Amex: VHC) announced today that Kendall Larsen, Chairman, President and CEO, recently told CEOcast, Inc. in an interview that the company's design pilot this quarter for its Secure Domain Name Initiative (SDNI) in participation with leading 4G/LTE companies (domain infrastructure providers, chipset manufacturers, service providers, etc.) will move into production over the next six to 12 months for delivering to end-users and consumers of the Internet and mobile devices the needed and necessary security requirements for the next generation 4G/LTE wireless networks. The pilot initiative is implementing the company's patented Secure Domain Name and automatic Virtual Private Network technology. The interview with the on-line program, which reaches millions of investors worldwide, can be accessed at www.ceocast.com and will be available through Friday, July 30. (Register and log-on for free.)

Here are highlights of the Larsen interview in which he talked about VirnetX's leadership role in commercializing its patent portfolio by developing a licensing program and software products designed to create a secure environment for next-generation 4G Internet-based applications:

As part of the patent infringement case settlement, Microsoft is taking a license to the VirnetX patents for Microsoft's products and will make a one-time payment of $200 million to VirnetX. The company's license to Microsoft is the first of many others to come with large communications vendors in the sector or as Kendall Larsen put it, "license to the titans."
The United States Patent and Trademark Office (USPTO) confirmed in June 2010 that all claims of VirnetX's two key patents are patentable and valid, which confirms VirnetX has key patents related to one of the most important security technologies, Virtual Private Networks. (The two patents were determined to have been infringed by Microsoft Corporation at a jury trial in a patent infringement suit that was settled by VirnetX and Microsoft in May 2010.)
To reward its strong and loyal stockholder base, which has been instrumental to the company's recent successes, the Board of Directors of VHC approved a declaration of a special cash dividend of $0.50 per share of the company's common stock that was payable on July 15, 2010 to stockholders of record on July 1, 2010. Kendall Larsen also stipulated the desire for more special dividends in the future.
VirnetX advanced from the Russell Microcap Index to the Russell 3000 Index and Global Index in June 2010, which represents an important step in growing the company's presence and visibility in the investment community. It also highlights the company's considerable achievements since joining the Russell Microcap Index in 2008.

About VirnetX

VirnetX Holding Corporation, an Internet security software and 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 communication applications such as instant messaging, VoIP, smart phones, eReaders and video conferencing. The Company's patent portfolio includes over 48 U.S. and international patents and pending applications that were recently declared as essential for 4G security specifications and provide the foundation for the Company's unique GABRIEL Connection Technology. For more information, please visit www.virnetx.com.

Forward Looking Statements

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 Company's Annual Report on Form 10-K filed with the SEC on March 31, 2010 and Quarterly Report on Form 10-Q filed on May 7, 2010.