On October 9, 2009, VirnetX Holding Corp received a letter from the NYSE AMEX LLC stating that, based upon a review of publicly available information, the Company has now resolved the continued listing deficiencies referenced in the Exchange's letter dated April 30, 2009. The Exchange noted that the Company's continued listing eligibility will continue to be assessed on an ongoing basis. The Company is now subject to the provisions of Section 1009(h) of the Exchange's Company Guide that states that if the Company, within 12 months of October 30, 2009, is again determined to be below the continued listing standards, the Exchange staff may take appropriate action, which, depending upon the circumstances, may include providing the Company with an opportunity to submit a plan to the Exchange advising the Exchange of action the Company has taken, or will take, that would bring it into compliance with the continued listing standards, or the Exchange may immediately initiate delisting proceedings.

To discuss company's current Markman Order in its litigation with Microsoft and the Order's impact on VirnetX's business strategy

VirnetX Holding Corporation said in a SEC 10-Q filing, “In January 2009, we closed an underwritten public offering of 2,470,000 shares of our common stock, including 270,000 of which were issued pursuant to the underwriter’s over-allotment option, plus warrants to purchase 1,235,000 shares of common stock at $2.00 per share, including 135,000 of which were issued pursuant to the underwriter’s over-allotment option, warrants to purchase 1,235,000 shares of common stock at $3.00 per share, including 135,000 of which were issued pursuant to the underwriter’s over-allotment option, and warrants to purchase 1,235,000 shares of common stock at $4.00 per share, including 135,000 of which were issued pursuant to the underwriter’s over-allotment option. We anticipate that our existing cash and cash equivalents are not currently sufficient to fund our operations through September 2009. In order to obtain additional capital, we are evaluating alternative financing sources, including, but not limited to, the issuance of equity or debt securities, corporate alliances, joint ventures and licensing agreements; however, there can be no assurance that funding will be available on favorable terms, if at all. If we are unable to obtain additional capital or generate sufficient revenue from such efforts in the short term, we may be required to cease operations or to reduce cash used in our business, including the termination of commercialization efforts that may appear to be promising, the sale of our patent portfolio or other assets, the abandonment of our litigation with Microsoft or others and the reduction in overall operating activities.”