Lawsuit Filed Against Microsoft & Compaq

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February 27, 2002 - E-Pass Washington

Lawsuit Filed Against Microsoft & Compaq

PRESS RELEASE

E-PASS TECHNOLOGIES FILES PATENT INFRINGEMENT ACTION AGAINST MICROSOFT CORPORATION and COMPAQ COMPUTER CORP.

On February 8, 2002, e-pass Technologies, Inc. filed a patent infringement complaint against Microsoft Corporation and Compaq Computer Corp. in the Federal Court of Houston, Texas, accusing the defendants of infringing its U.S. Patent No. 5,276,311.

In addition to asserting its patent, e-pass claims that Microsoft offered to buy a license, and that Microsoft insisted that the license include a one year option permitting it to acquire the patent for $10 million. e-pass claims it rejected that offer, and that Microsoft, rather than negotiate in good faith, chose to ignore the patent, believing that e-pass would not have the financial ability to enforce its rights against Microsoft.

The Microsoft offer, made on behalf of the company by one of its senior officers, Michael Cooper, is attached as an exhibit to the complaint filed with the Federal Court in Houston.

FOR ADDITIONAL INFORMATION, CONTACT E-PASS WASHINGTON.

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