VirnetX Announces Filing of Registration Statement For Sale of Common Stock

SCOTTS VALLEY, Calif. – September 24, 2008 –VirnetX Holding Corporation, or VirnetX, has filed a registration statement with the U.S. Securities and Exchange Commission, or SEC, for a proposed public offering of up to $30,000,000 in common stock and warrants to purchase shares of its common stock. The common stock of VirnetX currently trades on the American Stock Exchange under the ticker symbol "VHC".

VirnetX is developing and commercializing software and technology solutions for securing real-time communications over the Internet. VirnetX intends to use the proceeds of the offering to fund product development, to pursue its litigation strategy, and for general working capital needs.

Cowen and Company, LLC and Craig-Hallum Capital Group LLC have agreed to act as lead placement agent and co-placement agent, respectively, in connection with this offering. The placement agents are not purchasing the securities offered by VirnetX and are not required to sell any specific number or dollar amount of securities, but will use their reasonable best efforts to sell the securities offered. A copy of the preliminary prospectus may be obtained by contacting your Cowen and Company, LLC sales representative or Cowen and Company, LLC c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 at Phone: (631) 274-2806 or Fax: (631) 254-7140, or Craig-Hallum Capital Group LLC at 222 South Ninth Street, Suite 350, Minneapolis, MN, 55402, Main Phone: (612), 334-6300, Toll Free: (800) 752-1476 or Fax: (612) 334-6348.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

This press release contains certain forward-looking statements that reflect the current views and/or expectations of VirnetX Holding Corporation with respect to its business, future events and the use of proceeds from the offering. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.

Press Contacts

Sameer Mathur
VirnetX Holding Company
831.438.8200
sameer_mathur@virnetx.com

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