posted 08-04-2004 02:13 PM                       

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E-Data Commences Litigation Against 14 Companies in the United States; New Litigation Follows Successful Settlement with Apple Computer in Europe
8/4/2004 10:42:00 AM

PORT WASHINGTON, N.Y., Aug 4, 2004 (BUSINESS WIRE) -- E-Data Corporation (EDTA) announced today that it has commenced litigation, and is seeking damages from the following companies: Cinemark USA, Inc.; Regal Entertainment Group (RGC); the Thomson Corporation (TOC); International Data Group, Inc.; Amazon.com, Inc. (AMZN); Movietickets.com, Inc.; Ticketmaster, L.L.C., Marcus Theaters Corporation, Fandango, Inc., Franklin Electronic Publishers, Inc. (FEP), The New York Times Company (NYT); Hallmark Cards, Inc.; American Greetings Corporation (AM); and NewsBank, Inc., in the United States District Court, Eastern District of Texas (Docket: 4 04 CU 256), for having infringed upon its patent (U.S. patent No. 4,528,643) also known as "the Freeny patent," prior to its expiration within the United States in January 2003. The Freeny patent covers the downloading and recording of information from a computer onto a tangible object.

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This action follows the company's recent settlement with Apple Computer, Inc. (AAPL). Additionally, the company has pending litigation against Getty Images (GYI) and Corbis in the United States and Europe. The United States litigation has been commenced in the U.S. District Court, Western District of Texas (Docket: A 04 CA 230LY). In Europe, the company has filed litigation in the United Kingdom (Docket: Pat04007 and Pat04008) for infringing upon its European patent (EP 0 195 098 B-1).

Bert Brodsky, chairman of E-Data Corporation stated, "These 14 companies have violated our patents. We have a very strong track record enforcing our intellectual property rights, as evidenced by our favorable decision with the U.S. Court of Appeals, and our recent settlement with Apple Computer. In addition, we have obtained settlements from Microsoft, Tiscali, HMV, and On Demand Distribution, further reinforcing the strength of our patents. We are represented by two of the leading intellectual property law firms--Simon, Galasso & Frantz in the United States, and Howrey Simon Arnold & White, MNP, in Europe. Given our strong representation and recent success, we will aggressively enforce our rights."

Within the U.S., the company has already secured more than 30 domestic licenses and has received a favorable decision by the Court of Appeals for the Federal Circuit on November 6, 2000 - supporting the scope of the company's patents. E-Data has alerted additional companies to their need for a license under the Freeny patent, and is analyzing the activities of others. The company will not hesitate to start additional legal actions if necessary.

About E-Data Corporation

E-Data Inc. (EDTA) owns North American and European patents covering a specific system and method of distributing digital content over electronic and wireless networks. The company believes that this patent is the basic building block of an emerging global market for information, music, books, films and other products digitally distributed through electronic systems, networks or kiosks, including the Internet. Under its business model, E-Data will seek to partner with companies in various markets to leverage its intellectual-property rights by practicing, as well as licensing, its proprietary technology.

Forward-Looking Statements

This press release contains forward-looking statements which involve known and unknown risks and uncertainties or other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used herein, the words "may," "could," "estimate," "believes," "anticipates," "thinks," "intends," "will be," "expects" and similar expressions identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Prospective investors are cautioned that forward-looking statements are not guarantees of future performance. Actual events or results may differ from the Company's expectations, which are subject to certain risks and uncertainties, including but not limited to protracted judicial proceedings, growth trends in e-commerce and the ability of the Company to finance its licensing and marketing activities.

SOURCE: E-Data Corporation

Lippert/Heilshorn & Associates
David K. Waldman, 212-838-3777
dwaldman@lhai.com

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