Statement by VirnetX

SCOTTS VALLEY, Calif., April 3 /PRNewswire-FirstCall/ -- VirnetX Holding Corporation (NYSE Amex: VHC), a leader in secure real-time communications and collaboration technology, announced, in compliance with Section 610(b) of the AMEX Company Guide, that in connection with the recent filing of its annual report on Form 10-K for the year ended December 31, 2008, the report of its independent public accounting firm included in its annual report contains a "going concern" qualification.

In addition, the Company announced that in connection with VirnetX's ongoing litigation with Microsoft Corporation, a Markman hearing on claim construction was conducted on February 17, 2009 and the parties are currently awaiting the Court's order with respect to the hearing.

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. For more information, please visit

http://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 VHC 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," "will," 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 VHC's reports and registration statements filed with the Securities and Exchange Commission, including those under the heading "Risk Factors" in the company's final prospectus filed pursuant to Rule 424(b)(5) with the SEC on January 27, 2009.

    Contacts:

    Greg Wood
    VirnetX Holding Corporation
    831.438.8200
    greg_wood@virnetx.com

    Rudy Barrio (Investors)
    Allen & Caron
    212.691.8087
    r.barrio@allencaron.com

    Brian Kennedy (Media)
    Allen & Caron
    212.691.8087
    brian@allencaron.com

SOURCE VirnetX Holding Corporation