VirnetX And Aastra Sign A Patent License Agreement

VirnetX Holding Corp. (VHC) and Aastra USA, Inc. (the "Parties") today announced that on May 3, 2012, they signed a Patent License Agreement (the "Agreement").  Under the terms of the Agreement, VirnetX has agreed to license certain of its patents to Aastra USA, Inc., for a one-time payment to VirnetX and an ongoing reasonable royalty for all future sales through the expiration of the licensed patents as outlined in the Agreement with respect to certain current and future IP-encrypted products.

Under the terms of the Agreement, the Parties have also agreed to dismiss the patent infringement case between the Parties and their affiliates before the U.S. District Court for the Eastern District of Texas.  All other aspects of the agreement were not disclosed.

"We are pleased to have come to an agreement with Aastra on terms consistent with our VirnetX IP Licensing program," said Kendall Larsen, Chief Executive Officer and Chairman of VirnetX.

"We are pleased to reach a settlement with VirnetX to resolve these matters," said John Tobia, Vice President and General Counsel, Aastra USA, Inc.

About Aastra USA
Aastra USA Inc. is the US business unit of Aastra Technologies Limited, a company at the forefront of the enterprise communication market. Headquartered in Concord, Ontario, Canada, Aastra develops and delivers innovative communications products and applications for businesses. For additional information on Aastra, visit our website at www.aastrausa.com.

About VirnetX
VirnetX Holding Corporation is an Internet security software and technology company with patented technology for 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 20 U.S. and 26 international patents and over 100 pending applications. For more information, please visit www.virnetx.com.

Forward Looking Statements by VirnetX Holding Corporation
Statements in this press release that are not statements of historical or current fact, including statements regarding the strength of the patent portfolio, 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 proceedings 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 February 29, 2012 and in the Company's Quarterly Report on Form 10-Q filed with the SEC on November 9, 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:

Media contacts:
Robyn Thompson
+1.469.365.3249
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Greg Wood
VirnetX Holding Corporation
775.548.1785
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