VirnetX Receives European Security Patent

Patent for Network Protocol for Secure Communications Bolsters Patent Portfolio

Dec 02, 2010, 13:33 ET from VirnetX Holding Corporation

SCOTTS VALLEY, Calif., Dec. 2, 2010 /PRNewswire/ -- VirnetX Holding Corporation (NYSE Amex: VHC), an Internet security software and technology company, today announced that it has been granted Patent # EP99958693 by the European Patent Office.  The patent for network protocol for secure communications builds upon the Company's important patent portfolio that address critical communication security needs of large enterprises, managed service providers and technology OEMs.

The methods in this patent are used to create a special kind of Virtual Private Network (VPN). This VPN not only includes the normal authentication and privacy, but also includes a stealth feature. This stealth feature is achieved by randomly changing the IP packet addresses on a packet-by-packet basis. Methods are described that enable the computers at each end of the VPN to use cryptographic techniques and synchronize the random address sequence. Third party observers cannot predict the sequence and the packets appear to be unrelated and not part of the same network connection. 

"We are very pleased with the issuance of this patent," said Dr. Robert Short lll, VirnetX Chief Technical Officer and Chief Scientist and one of the inventors of the patent.  "The technologies described in this patent were originally developed for protecting National Security assets, but we believe that they could prove equally important for protecting extremely valuable commercial assets.  The issuance of this patent also signifies VirnetX's ongoing commitment to R & D with focus on the challenges facing both national and international security."

About VirnetX

VirnetX Holding Corporation, an Internet security software and 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 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 that were recently declared as essential for 4G security specifications and provide the foundation for the Company's unique GABRIEL Connection Technology. 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 potential value of Virtual Private Networks and the Company's patent portfolio, the anticipated changes in the network market, the ability of the Company to market and license its patents and the anticipated future growth prospects of the Company. 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 ability to capitalize on the Company's patent portfolio and generate licensing fees and revenues; (2) the ability of the Company to be successful in entering into licensing relationships with its targeted customers on commercially acceptable terms; (3) potential challenges to the validity of the Company's patents underlying its licensing opportunities; (4) the ability of the Company to achieve widespread customer adoption of the Company's GABRIEL Communication Technology™ and its secure domain name registry; and (5) 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 31, 2010 and Quarterly Report on Form 10-Q filed on November 8, 2010.  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

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