VirnetX Patent Claims Confirmed Valid in Dispute With Microsoft

US Patent Office Confirms Three Claims

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Mar 19, 2010, 11:22 ET

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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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.