Settlement of Patent Litigation Between ActivIdentity and Intercede

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Legal Action Terminated in California and UK; Intercede announces settlement of patent infringement disputes in the U.S. and the UK; The parties have settled the U.S. and UK litigations on mutually acceptable terms

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Richard Parris, Intercede's Chairman and Chief Executive, said: "We are pleased to end all outstanding legal disputes between Intercede and ActivIdentity and look forward to progressing our business.

Intercede today announce that they have settled on mutually acceptable terms a lawsuit filed by ActivIdentity in the United States District Court for the Northern District of California (Case No. C08-4577) on 1 October 2008, and a lawsuit filed by Intercede in the UK High Court in London (Case No. HC09C04824) on 22 December 2009.

The settlement entered on 23 March 2010 resolves patent litigation brought by ActivIdentity accusing Intercede’s MyID products and Intercede’s counterclaims alleging invalidity, violations of US antitrust law, fraud and unfair competition. This settlement includes a patent license, and the details of the settlement are confidential.

Richard Parris, Intercede's Chairman and Chief Executive, said:
"We are pleased to end all outstanding legal disputes between Intercede and ActivIdentity and look forward to progressing our business. This settlement ensures that Intercede’s worldwide partners and customers can continue to benefit from our leading MyID Identity and Credential Management System with confidence."

Intercede will take a charge to the current financial year for all of the exceptional costs associated with the legal fees relating to this case. It is not anticipated that the patent license agreement will have a material impact on Intercede’s current or future earnings.

About Intercede
Intercede is the producer of the MyID® Identity and Credential Management System (IDCMS). Intercede's MyID is the only IDCMS software product that enables organizations to easily and securely manage the identities of people and their associated identity credentials within a single, integrated, workflow driven platform. This includes enabling and managing: secure registration, biometric capture, application vetting and approval through to smart card personalisation, issuance and management.

Intercede's MyID is being used around the world by large corporations, governments and banks to manage millions of identities for employees, citizens and customers. Notable deployments in the US include 10 Federal Agencies, a program with Lockheed Martin and two major US financial institutions. In Europe and the Middle East, Intercede's MyID is being deployed in support of government identity, health and corporate employee ID security projects.

For more information visit http://www.intercede.com

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Richard Parris
Intercede
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