CORRECTING and REPLACING Paltalk Files Patent Infringement Suit Against Microsoft

NEW YORK--(BUSINESS WIRE)--Sept. 13, 2006--Please replace the release with the following corrected version due to multiple revisions to the contact information.

The corrected release reads:

“We have been creating cutting edge services for the entire history of our company”

PALTALK FILES PATENT INFRINGEMENT SUIT AGAINST MICROSOFT

Paltalk, the company that services the largest online video chat community on the internet, announced today that it has filed a patent infringement lawsuit against Microsoft in the U.S. District Court for the Eastern District of Texas. According to Paltalk's complaint, Microsoft infringes several Paltalk patents concerning group messaging systems. Paltalk seeks damages and a permanent injunction prohibiting Microsoft's continued infringement.

The Paltalk patents asserted against Microsoft protect innovations concerning systems and techniques for implementing messaging and communications with groups of users, such as groups of players of online games. Paltalk's complaint claims infringement of U.S. Patents No. 5,822,523 and No. 6,226,686. Paltalk seeks damages and a permanent injunction against Microsoft's alleged unauthorized use of Paltalk's patented technology. The complaint outlines that Paltalk's technology covers a number of aspects of online communications, including gaming communications through a group message server to maintain a consistent environment for all players, as well as establishing groups for online game play.

"We have been creating cutting edge services for the entire history of our company," said Joel Smernoff, President, Paltalk. "We are taking an important step to protect our intellectual property rights and continue the important developments that set Paltalk apart."

Paltalk is represented by David Marcus, Max Tribble, and Brooke Taylor of Susman Godfrey LLP and by Mike Heim and Doug Wilson of Heim, Payne & Chorush LLP, another leading firm specializing in patent litigation.

About Paltalk

Paltalk is the largest Instant Chat (IC) community on the Internet, with over four million active members participating in live voice- and video-enabled chat rooms. Paltalk Messenger allows Paltalk members to create and moderate their own voice and video chat rooms, allowing the millions of other Paltalk members to join in. Paltalk Messenger also makes it simple to instant message (IM) buddies on AOL, Yahoo, and ICQ. Paltalk Messenger has been downloaded over 42 million times and accounts for over eight billion voice minutes per year, making it the world's largest independent instant messenger. Founded in 1998, Paltalk is a privately held company based in New York. Paltalk also owns and operates Hearme (www.hearme.com), a B2B web conferencing service.

About Susman Godfrey L.L.P.

Susman Godfrey L.L.P., a law firm with more than 75 lawyers, was named one of the top litigation boutiques in the country by American Lawyer. The firm has offices in Houston, Los Angeles, New York, Seattle, and Dallas. For additional information, visit www.susmangodfrey.com.

About Heim, Payne & Chorush LLP.

Heim, Payne & Chorush LLP. is a Texas law firm focused on intellectual property litigation and antitrust litigation involving patents. The law firm litigates matters throughout the United States. Attorneys at the firm have been involved in several high profile patent and antitrust cases, often representing patent owners/plaintiffs against Fortune 500 companies, including Intel, Dell, Sony, Microsoft, Apple, Oracle, AOL, Bristol-Myers Squibb, Bayer Corp., and Abbott Laboratories.