VirnetX Featured as Stock Pick of 2010 by KonLin Investment Letter

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Jan 12, 2010, 07:30 ET

SCOTTS VALLEY, Calif., Jan. 12 /PRNewswire-FirstCall/ -- VirnetX Holding Corporation (NYSE Amex: VHC; www.virnetx.com) a secure real-time communications and collaboration technology company based in Scotts Valley, CA, announced today that it has been named the "Stock Pick of 2010" by the KonLin Letter, an independent New York-based investment newsletter (www.konlin.com) published by KonLin Research & Analysis. The investment letter cited the development stage company as having 23 U.S. and International (Europe, Japan and Australia) patents (with 28 more pending) in its portfolio and each patent has a range of 40 to 60 claims tied to it, which are essential to 4G and long-term evolution wireless security standards.

In recognition that the overall market for private and secure communications is global, large and exponentially expanding, with the current IP telephony market (in the U.S. alone estimated to be $49.5 billion), the KonLin Letter also highlighted the following about VHC, stating the ultimate target of low-teens:

"Investors should realize the importance and value of VHC's patents to the emerging mobility market. The current IP telephony market in the U.S. alone is estimated to be $49.5 billion. And with the inclusion of fixed mobile convergence and IP services the estimate grew to nearly $150 billion by end of 2009, with much of this growth due to the popularity of social networks, all built on unsecured networks, as well as explosive mobile and Smartphone usage. In addition, the rapid expansion of Cloud Computing, estimated at $56 billion in 2009 and growing to $150 billion in 2013, offers another rich revenue opportunity for VHC as top level and real-time security is vital to this burgeoning sector."

"The VHC advantage is its ownership of the key patents that are the foundation of the collaborative communications arena. VHC expects to derive the majority of its revenue from license fees and royalties associated with these patents."

Another VHC advantage, the KonLin Letter noted, is recently being awarded two key patents so the company can "establish and run a Secure Domain Name Registry. These dynamic patents expand VHC's exclusive rights to set up and run such service to enable automated secure connections across the Internet."

The value of VHC's patents to the emerging mobility market, which is projected to have over 2.5 billion connected devices by 2014 and 1 billion phones by 2013, is also getting the attention of other recent investment reports.

VHC was listed among the "Best Performing U.S. Stocks" for the week ending January 9, 2010 by the NASD100.com – Daily Stock Rankings (www.nasd100.com).

In the Dick Davis Digest, (www.dickdavis.com) January 6, 2010 (Volume 29, Issue 662) VHC is also highlighted among the "Top Stock Picks for 2010" in investment ideas from the best minds on Wall Street. In the technology sector, the Davis Digest reports: The VHC "stock was recommended at $2.06 and is heading for its first target of 5 to 6. We would Add/Buy," in view of upcoming collaborations to "enable the company to secure the next generation Internet. Ultimate target low-teens."

Dawson James Securities, an institutional research firm based in Boca Raton, FL, reported in its Institutional Research Technology Company Update (www.dawsonjames.com) December 30, 2009 edition: It's "just the tip of the iceberg related to VHC's secure network technology and that more announcements will come in 2010" to secure other important partnerships. "We believe VHC's shares have further appreciation potential, and thus we are maintaining our Buy rating on VHC and 18 to 24-month price target of $6.00, still below highs of just last year."

To read the complete KonLin Letter analysis of VirnetX, go to: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjU4ODd8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1

The opinions expressed in "The KonLin Letter" are those of the analyst and not of VirnetX Holding Corporation. VirnetX does not accept responsibility for the accuracy of any of the information or statements contained in this report. For information provided by VirnetX with respect to its business and business prospects, as well as associated risks with an investment in VirnetX's stock, please see the Company's reports filed with the Securities and Exchange Commission, copies of which are available at www.sec.gov and also on the Company's website www.virnetx.com

About "The KonLin Letter"

"The KonLin Letter" is a unique service that recommends 5 low priced selections each month including a featured stock of the month, and reviews 30-35 different stocks while monitoring a broad range of technical indicators for the best possible Market Timing Advice. For more information go to www.konlin.com

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

Safe Harbor Agreement

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.