Identita Deal to Acquire CardXX Is Imminent/Legal Claims By CardXX Against Innovatier For Alleged Trade Secret Theft...

Rockley, Christ Church, Barbados,– March 3rd , 2009 – Identita, The Powered Card™ provider of cross platform access, authorization and identity management solutions, announces that Identita and Cardxx have been engaged in extended negotiations to consummate an acquisition of CardXX by Identita. Although current extraordinary economic conditions have delayed negotiations, both companies are pleased to report that the completion of the acquisition is now expected to occur very soon. Identita is the worldwide leader in the high-volume production of advanced smart cards and other embedded electronics devices, having scaled and perfected CardXX’s patented Reaction Assisted Molded Process (RAMP) technology, and look forward to continued growth and development as world leaders in the market.

Further, the long running legal disputes by Identita and CardXX against Innovatier remain pending, particularly as to Innovatier’s alleged theft of trade secrets, breach of contract and misappropriation of other proprietary rights related to the patented Cardxx RAMP technology. Two cases against Innovatier are pending between Cardxx/Identita and Innovatier in Florida state court and in Colorado federal court. Although Innovatier originally filed these lawsuits, Cardxx has asserted several claims against Innovatier arising out of Innovatier’s breach of a license agreement and misappropriation of rights relating to RAMP technology.

In January, on the eve of full discovery, Innovatier’s litigation counsel withdrew from representation of Innovatier in both cases. As a result, the Florida state court action brought by Innovatier against Identita is now subject to dismissal. In early February following its attorneys’ withdrawal and in order to avoid defending CardXX’s claims in the Colorado action, Innovatier filed a petition for Chapter 11 reorganization in Florida. Innovatier’s bankruptcy filing has temporarily stayed the legal claims by Cardxx against Innovatier in the Colorado action. As a result, Innovatier has again avoided its discovery obligations to disclose what CardXX expected to reveal as evidence of Innovatier’s intentional and bad faith breach and misappropriation of the RAMP technology. However each and every one of the legal claims against Innovatier will remain alive and pending. The enforcement of CardXX’s claims will resume immediately upon the conclusion of Innovatier’s reorganization or earlier order of the court. CardXX and Identita’s firm view, after review of Innovatier’s bankruptcy filings to date, is that Innovatier has petitioned for reorganization to avoid defending the serious legal claims asserted by CardXX and disclosing the extent of its malfeasance relating to the RAMP technology rights owned by CardXX. It is also evident from representations made to the Florida bankruptcy court that Innovatier continues to illegally offer and attempt to sell CardXX’s RAMP technology to third parties for illegitimate licensing and customer opportunities in an effort to maintain business operations during the reorganization proceedings. Both CardXX and Identita will vigorously pursue their legal and equitable rights through all available legal channels against any party who transacts licenses, purchases products or engages in other commercial activity with Innovatier in connection with RAMP technology.

“We’ve spent a considerable amount of time and money on perfecting and more importantly scaling this process. We know the parties that have spoken to Innovatier in the past and presently, whether they are in Europe or Brazil is of no concern to me. What should concern these parties is that we will diligently pursue and prosecute them to the fullest extent of the law”, said Identita CEO, Rocky Stefano

Press Contacts

Identita Technologies International SRL Archie Cuke, (246) 435-4614 e-mail – info@identita.com