Sigaba statement on patent issue

Of arguments that "patents hinder innovation," contemplate the press release below:

Sigaba, the leading provider of secure messaging solutions, announced on May 31, 2005 the next step in its aggressive
defense against patent infringement claims that were held to have had no merit by both the Federal District Court in San Francisco and the Federal Appeals Court. Cleared of all charges, Sigaba continues to pursue justice while it supports and expands its customer base with award-winning secure messaging solutions.

A June 2005 trial date has been set for Sigaba's counterclaims against Mayfield Partners, a Northern California venture capital firm, and PostX(TM), a provider of ebusiness solutions. One claim, filed in April 2003, states
that Mayfield Partners and PostX conspired to restrain trade by filing unfounded patent claims against Sigaba to slow Sigaba in its market, a violation of the Sherman Act. The second claim involves similar accusations against PostX alone.

"Sigaba is innocent of the charge of violating PostX patents. That's a matter of law, and there should be no further concerns in the marketplace. We're focused on the pioneering and innovation that has brought success to Sigaba and to its customers, and we're working on exciting new solutions to be unveiled down the road. Meanwhile, we're moving forward with our counterclaims to resolve the damage done to Sigaba by those meritless claims
and erase any confusion caused by these bogus suits," said Robert E. Cook, executive chairman of Sigaba.

In September 2002, PostX filed a patent infringement suit against Sigaba, just days after Sigaba won the largest secure messaging contract in history. PostX then actively contacted customers and prospects in the secure document delivery market, warning them that it would be dangerous to do business with
Sigaba, as they could become implicated in the alleged patent infringement. [LBE note: remember ALAM and Henry Ford, 100 years ago.]

Sigaba was cleared of all charges in November 2004 by the Federal Appeals Court in Washington, D.C., which affirmed unanimously a decision by the Federal Court in San Francisco that a trial was not necessary to determine that Sigaba did not violate PostX patents, as a matter of law and that there was no basis for disputing this.

"Although this unfounded litigation has been a distraction, Sigaba's commitment to its customers is alive and well, and we're continuing to deliver great solutions based on our award-winning, patented secure messaging technology. The market is robust, and we're proud to be serving a growing base of blue-chip clients including Bank of America, Fidelity Investments, New
York Life, Agilent, First Data, and Blue Cross," said Cook.