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VirnetX Agrees to ETSI's Policy Request

Acknowledges 3GPP Role in Establishing World Class Standards


News provided by

VirnetX Holding Corporation

Apr 28, 2011, 09:00 ET

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SCOTTS VALLEY, Calif., April 28, 2011 /PRNewswire/ -- VirnetX Holding Corporation (NYSE Amex: VHC), an Internet security software and technology company, today announced that at the request of the European Telecommunications Standards Institute (ETSI), it has agreed to update its licensing declaration to ETSI under ETSI's Intellectual Property Rights (IPR) policy. This is in response to VirnetX's March 15, 2011, Statement of Patent Holder identifying a group of its patents and patent applications that VirnetX believes are or may become essential to certain developing specifications in the 3GPP LTE, SAE project.

VirnetX will make available a non-exclusive patent license under FRAND (fair, reasonable and non-discriminatory terms and conditions, with compensation), to 3GPP members desiring to implement the Technical Specifications identified by VirnetX, as set forth in the updated licensing declaration under ETSI's IPR policy.  

"This is a significant event for us and it's important that we acknowledge ETSI and the members of the 3GPP for their role in establishing the LTE telecommunications standards," said Kendall Larsen, VirnetX CEO and President.  "Now, VirnetX is uniquely positioned to license its essential security patents to 3GPP members as they move into 4G."  

VirnetX also announces that on April 26, 2011, it has been granted U.S. Patent No. 7,933,990, Network Protocol for Secure Communications with Assured System Availability, by the United States Patent and Trademark Office. This patent is included in the patent family identified in the licensing declaration submitted to ETSI.

About VirnetX

VirnetX Holding Corporation is 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 over 48 U.S. and international patents and 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 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.  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
[email protected]

SOURCE VirnetX Holding Corporation

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