Absolute Software Reaches Favorable Settlement Agreement in Precedent Setting Anti-Theft Patent Infringement Case

May 08, 2012

Following the Ruling by the United States Court of Appeals for the Federal Circuit in Favor of Absolute Software, Stealth Signal Consents to Final Settlement

Vancouver, Canada: May 8, 2012 – Absolute® Software Corporation (“Absolute” or the “Company”) (TSX: ABT), the leading provider of firmware-embedded endpoint security and management solutions, today announced it has reached a settlement with Stealth Signal (now known as XTool Mobile Security, Inc.) by way of a stipulated judgment. The agreed damages were $5.17m USD and Stealth Signal satisfied the judgment by granting Absolute a 30 day option to acquire all of the assets of Stealth Signal at no additional cost. Stealth Signal also agreed to begin the steps to dissolve the company within 60 days. The monetary damages in the final judgment have not been recorded as an asset as Absolute believes Stealth Signal has no material assets. Accompanying the monetary damages will be an injunction permanently restraining and enjoining Stealth Signal from making, using, offering to sell, selling or importing into the United States products infringing Absolute Patents.

In October 2011, the US Court of Appeals reversed the District Court’s summary judgment ruling that Stealth Signal did not infringe Absolute Patents (U.S. Patent Nos. 6,244,758, 6,300,863, and 6,507,914) and remanded the issue of whether Stealth Signal is infringing Absolute Patents to trial. The Court of Appeals also affirmed the District Court’s summary judgment that Absolute did not infringe Stealth Signal Patent (U.S. Patent No. 5,406,269), as Stealth Signal had claimed.

“We are glad to have reached a settlement in this case following the US Court of Appeals decision on this matter as it validates our growing patent portfolio and innovative Computrace technology platform,” stated John Livingston, Chairman and Chief Executive Officer at Absolute Software. “The decision by the Court and subsequent settlement reinforces our position that Absolute is indeed the true inventor and market leader that pioneered the development of the remote location tracking and anti-theft category for electronic devices. We will continue to offer patent licenses to those who wish to deliver similar functionality in the marketplace. Equally, we will continue to vigorously defend our patents as required.”

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About Absolute Software

Absolute Software (NASDAQ: ABST) (TSX: ABST) is the only provider of self-healing, intelligent security solutions. Embedded in more than 600 million devices, Absolute is the only platform offering a permanent digital connection that intelligently and dynamically applies visibility, control and self-healing capabilities to endpoints, applications, and network connections - helping customers to strengthen cyber resilience against the escalating threat of ransomware and malicious attacks. Trusted by more than 18,000 customers, G2 recognized Absolute as a leader for the tenth consecutive quarter in the Summer 2022 Grid® Report for Endpoint Management and as a high performer in the G2 Grid Report for Zero Trust Networking.

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