Court Issues New Order in VirnetX – Apple Lawsuit

Court Orders Retrial of Previously Consolidated Cases as Two Separate Matters

ZEPHYR COVE, Nev., Aug. 1, 2016 /PRNewswire/ — VirnetX™ Holding Corporation (NYSE MKT: VHC), an Internet security software and technology company, announced today that on July 29, 2016, the United States District Court for the Eastern District of Texas, Tyler Division, issued a new order in the Company’s pending litigation, Case No. 6:10-cv-417 (“Apple I”) and, Case No. 6:12-cv-855 (“Apple II”), against Apple Inc., vacating it’s previous order consolidating the two cases and ordering the parties to retry them as separate cases. According to the order, Apple I is now scheduled for Jury selection on September 26, 2016, unless the parties agree otherwise on an alternative date, and Apple II will now be retried after Apple I. The issue of willfulness in each case has been bifurcated and will be tried separately after each trial.

“We are disappointed by the Court’s decision to vacate its prior ruling on consolidation and ordering the parties to retry the cases as two separate matters,” said Kendall Larsen, VirnetX CEO and President. “We are reviewing all our options and will follow the Court’s direction as we start preparing for these retrials. We are confident that we have the resources required for these retrials. We trust that the jury will again make the right decision in the retrials.”

VirnetX has two currently-pending patent infringement lawsuits against Apple Inc., in United States Court for the Eastern District of Texas, Tyler Division. The Apple I case includes unresolved remanded issues related to (1) damages owed to VirnetX for infringement by Apple’s original VPN-on-Demand (VOD) and (2) the alleged infringement, damages and willfulness of Apple’s original FaceTime product. The Apple II case covers issues of alleged infringement, damages and willfulness by Apple’s redesigned VOD in iOS 7 and 8, the redesigned FaceTime in iOS 7 and 8 and OS X 10.9 and 10.10 and iMessage.

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 over 115 U.S. and international patents and over 50 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; including pending and future inter-partes review proceedings in the Patent and Trademark Office; (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 Quarterly Report on Form 10-Q filed with the SEC on May 10, 2016. 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:
Investor Relations
VirnetX Holding Corporation
775.548.1785
ir@virnetx.com

VirnetX, Gabriel Collaboration Suite, Gabriel Secure Communications Platform 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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