E-data grants Internet patent license to VocalTec

Business Wire, March 20, 1996

SECAUCUS, N.J.--(BUSINESS WIRE)--March 20, 1996--E-data Corp. (NASDAQ Bulletin Board:GIFT) today announced that it has entered into an agreement to license VocalTec Ltd. (NASDAQ National Market:VOCLF) of Herzliah, Israel for worldwide non-exclusive use of its key electronic distribution patent.

The Freeny system and method patent (U.S. Patent No. 4,528,643 and corresponding Canadian and European patents) was acquired by E-data in 1994. It covers certain types of point-of-sale transactions, such as those on the Internet, involving the purchase of products that are composed of digital data.

E-data Corporation patent counsel David Fink said that the licensing agreement prohibits disclosure of its terms and conditions. The license settles all aspects of the infringement litigation which E-data brought against VocalTec in 1995.

E-data is currently litigating or negotiating with nearly two dozen other companies for damages for infringement of its proprietary technology, which was invented by computer scientist Dr. Charles Freeny before there was commercial use of the Internet. The company has given legal notice of infringement to more than 150 violators and initiated suits against 21 of them.

"Our goal remains to license rather than to litigate," said E-data president Arnold L. Freilich. "We are delighted that such a highly successful industry leader as VocalTec has chosen to join IBM on our roster of licensees." IBM took the first E-data license in September 1995.

Freilich also announced that E-data has completed equity private placements of $650,000 to demonstrate its determination to enforce the Freeny patent. Terms of the placements were not disclosed.

CONTACT: E-data Corporation

Arnold L. Freilich

201/866-8456

or

Legal Contact:

David Fink, Esq.

203/325-3344

or

Agency Contact:

Warren J. Cavior

212/687-6070