Automated Benefits Corp.

Automated Benefits Corp.

August 05, 2005 16:00 ET

Automated Benefits Corp. Wholly Owned Subsidiary, Symbility Solutions, Responds to Complaint Served By Competitor Xactware in United States

TORONTO, ONTARIO--(CCNMatthews - Aug. 5, 2005) -

Not for dissemination in the United States of America

Automated Benefits Corp. (TSX Venture:AUT) (the "Corporation") advises that its wholly owned subsidiary, Symbility Solutions Inc. ("Symbility"), has been served with a complaint and a motion for preliminary injunction in the United States District Court for the Central District of Utah by Xactware, Inc., a Utah based company ("Xactware"). Xactware is the holder of certain United States patents and is alleging that Symbility is infringing on certain unidentified claims of those patents. Xactware's motion asks the court to enjoin Symbility from making, using, selling or importing its mobile claims product into the United States.

The alleged infringement is apparently related to an aspect of the Xactware software which is common to the claims estimating business and in use by a number of companies that serve the market in which both Symbility and Xactware compete.

Symbility is of the view the complaint is completely without merit. US counsel has been engaged to vigorously defend the complaint and the company has been advised by US patent attorneys that the Symbility products do not infringe any valid claim of any of the Xactware patents.

Symbility recently executed a contract with a Canadian insurance company which had a prior contract with Xactware. In addition, Symbility was recently short-listed to compete with Xactware and another software provider in respect to a high profile contract opportunity.

"It appears that Xactware is attempting to exploit the legal system in an effort to slow Symbility's marketing of superior products to our customers and prospective customers. We think that products should be judged on their technical merit and on the value they can add to customers", states Automated Benefits Corp. Chief Executive Officer, James Swayze. "At Symbility, our customers are our number one priority and we intend, notwithstanding Xactware's action, to continue to focus all our efforts on the productivity, service and value proposition that we endeavour to afford our customers".

About Automated Benefits Corp.

The Corporation is a software company dedicated to applications for the insurance industry with its head office in Toronto, Ontario. The Corporation currently has two subsidiaries, Autoben and Symbility.

Symbility has developed the Symbility mobile claims system focusing principally on residential and commercial property claims estimation for use by insurance company adjusters and independent contractors. With offices in Waterloo, Ontario and Montreal, Quebec, the Symbility mobile claims system is currently under contract with Economical Insurance Group and Allstate Insurance Company of Canada in addition to running pilots with Gore Mutual, Disaster Kleenup Canada and ServiceMaster Canada. With the success of the Canadian launch, Symbility intends to expand its sales efforts of the Symbility mobile claims system in the United States and Europe.

Autoben is focused on the employee benefit segment of the life insurance industry. Located in Edmonton, Alberta, Autoben provides claims management software for health and dental plans in addition to insurance products for employer groups. The proprietary software of Autoben, ABI, assists in reducing the cost of employee benefits programs by allowing local adjudication and administration to over 23,000 employees across Canada.

Anyone wishing to obtain further information or clarification respecting this matter is invited to participate in a conference call on Monday, August 8th, 2005, at 9:30 AM EST on the following dial in numbers: 416-406-6419 / 888-575-8232. At this time, James Swayze, President & CEO of the Corporation will be available to answer any questions.

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