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VirnetX Comments on USPTO Reexamination Decisions

By October 3, 2011Press Releases

SCOTTS VALLEY, Calif. – October 3, 2011 – VirnetX Holding Corporation (NYSE Amex: VHC), an Internet security software and technology company, today announced that, in response to the USPTO’s decision to grant Apple Inc.’s and Cisco Systems, Inc.’s reexamination requests on its U.S. Patent No. 6,502,135 , the Company welcomes these reexamination proceedings as they will further validate and strengthen its patent.

“We went into litigation against Apple and Cisco (Case 6:10-cv-00417-LED VirnetX Inc. v. Cisco Systems, Inc. et al) fully expecting reexamination requests,” said Kendall Larsen, VirnetX CEO and President. “These reexamination decisions are no surprise as the majority of reexamination requests made to the USPTO are granted. We welcome these reexamination proceedings as we believe the outcome will only further validate our patent that was already examined by the USPTO in 2010 when all of its claims were found valid and patentable. We are optimistic and remain confident that we will prevail at the conclusion of these reexamination proceedings.”

About VirnetX

VirnetX Holding Corporation, an Internet security software and technology company. 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 [21] U.S. and [18] 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 result of the re-examination, the affect of the re-examination on the litigation, and the validity and strength of the patent, 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 activities 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 March 16, 2011 and in the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 10, 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
831.438.8200
greg_wood@virnetx.com