VirnetX Receives Markman Order in Patent Infringement Action Against Cisco, Apple, NEC and Aastra

VirnetX Optimistic, Views Ruling as Favorable

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Apr 26, 2012, 09:00 ET

ZEPHYR COVE, Nev., April 26, 2012 /PRNewswire/ -- VirnetX Holding Corporation (NYSE Amex: VHC), an Internet security software and technology company, announced today that on April 25, 2012, the United States District Court for the Eastern District of Texas, Tyler Division, issued its patent claim construction, or "Markman" Order ("Markman Order") in the ongoing patent infringement action between VirnetX Inc. ("VirnetX") and Cisco, Apple, NEC and Aastra.

In a Markman ruling, a district court hearing a patent infringement case interprets and rules on the scope and meaning of disputed patent claim language regarding the patents in suit. A Markman decision is often a significant factor in the progress and outcome of patent infringement litigation.

In the recently issued Markman Order, the Court adopted interpretations that VirnetX believes are favorable to VirnetX on many of the claim terms that were in dispute in the litigation.

The litigation, which the company previously announced it had filed in August 2010, involves certain products that the company believes infringe six patents owned by VirnetX.

"We are extremely pleased with the Court's Markman Order. We remain confident in our position concerning Cisco, Apple, NEC and Aastra's infringement of the patents at issue," said Kendall Larsen, VirnetX's chairman, president and CEO. "While the outcome of this and any legal matter is unpredictable, we believe the Court's Markman Order is another significant step towards the successful resolution of this litigation and further validates VirnetX's ongoing commitment to the enforcement of our intellectual property and protection of our investment in patent-protected licensing and research and development."

About VirnetX

VirnetX Holding Corporation is an Internet security software and technology company with patented technology for 4G LTE security. The Company's software and technology solutions, including its secure domain name registry and GABRIEL Connection Technology™, are designed to facilitate secure communications and 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 20 U.S. and 26 international patents and over 100 pending applications. 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, including statements regarding the strength of the patent portfolio, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's patent portfolio, legal proceedings and licensing efforts. Such forward-looking statements are based on expectations, estimates and projections about the markets in which the Company operates, management's beliefs, and certain assumptions made by management and 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, including but not limited to (1) the outcome of any legal proceedings that have been or may be initiated by the Company or that may be initiated against the Company; (2) the ability to capitalize on the Company's patent portfolio and generate licensing fees and revenues; (3) the ability of the Company to be successful in entering into licensing relationships with its targeted customers on commercially acceptable terms; (4) potential challenges to the validity of the Company's patents underlying its licensing opportunities; (5) the ability of the Company to achieve widespread customer adoption of the Company's GABRIEL Communication Technology™ and its secure domain name registry; (6) the level of adoption of the 3GPP Series 33 security specifications; and (7) the possibility that Company may be adversely affected by other economic, business, and/or competitive factors. 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 February 29, 2012 and in the Company's Quarterly Report on Form 10-Q filed with the SEC on November 9, 2011. Many of the factors that will determine the outcome of the subject matter of this press release are beyond the Company's ability to control or predict. Except as required by law, the Company is under no duty to update any of the forward-looking statements after the date of this press release to conform to actual results.

Contact:
Greg Wood
VirnetX Holding Corporation
775.548.1785
[email protected]

SOURCE VirnetX Holding Corporation