VirnetX Files New Lawsuit Against Microsoft Corporation Citing Willful Infringement

Skype Products Subject of Complaint

PR Newswire

ZEPHYR COVE, Nev., April 22, 2013 /PRNewswire/ -- VirnetX™ Holding Corporation (NYSE MKT: VHC), an Internet security software and technology company, announced today that on April 22, 2013, it filed a complaint against Microsoft Corporation in the United States District Court for the Eastern District of Texas, Tyler Division.  The complaint includes allegations of willful patent infringement regarding six patents owned by VirnetX, U.S. Patent Nos. 6,502,135,  7,188,180,  7,418,504,  7,490,151,  7,921,211, and 7,987,274.  Specifically, the complaint references Microsoft's Skype products as infringing the VirnetX patents.  Skype was purchased after the limited license was signed between Microsoft and VirnetX.    This infringement falls outside of the scope of the prior license.  In its complaint, VirnetX seeks both damages and injunctive relief.

"Although Microsoft previously signed a patent license with Virnetx, we believe they are infringing our patents in ways that are outside the scope of the original license," said Kendall Larsen, VirnetX CEO and President. "We look forward to quickly resolving this matter."

About VirnetX

VirnetX Holding Corporation is an Internet security software and technology company with patented technology for secure communications including 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 Virnetx's intellectual property, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  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; (7) whether or not the Company's patents or patent applications may be determined to be or become essential to any standards or specifications in the 3GPP LTE, SAE project or otherwise; (8) the extent to which specifications relating to any of the Company's patents or patent applications may be adopted as a final standard, if at all; and (9) 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 1, 2013.  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
greg_wood@virnetx.com

VirnetX and GABRIEL Connection Technology are trademarks of VirnetX Holding Corporation. Other company and product names may be trademarks of their respective owners.

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