SOURCE: SmartMetric, Inc.

SmartMetric, Inc.

June 30, 2011 09:15 ET

Recent Court Ruling on Patent Definitions Validates SmartMetric Patent for Contact Smartcards Now Being Used by Banks and Credit Card Companies in the United States

BAY HARBOR, FL--(Marketwire - Jun 30, 2011) - SmartMetric, Inc. (OTCBB: SMME) President & CEO C. Hendrick said today that the company is looking forward to moving forward in prosecuting its Patent against all offenders and that we have reserved our rights to do so in the joint stipulations entered into between American Express, Visa and MasterCard.

According to the company, serious errors of interpretation of the Patent have been made in the Markman hearing and the company intends to file an appeal with the sound belief that it will succeed in overturning the narrowing of its Patent by the wrongful and inaccurate interpretation.

Nonetheless, the company, SmartMetric, Inc., realizes that even using the recent Court interpretation in the Markman hearing "contact" chip cards, smart cards and microchip data cards used in ATM machines and point of sale machines used in retail outlets all infringe on the SmartMetric, Inc. patent.

SmartMetric, Inc. is looking forward to the next stage of legal procedures in defending and enforcing its Patent, including seeking substantial damages from all and every offender.

Below are excerpts from the Joint stipulation entered into and agreed between American Express and SmartMetric, Inc.

3. Based on the Court's construction of certain of the disputed phrases of the asserted claims of '464' patent, namely "insertion of said data card into said data card reader," or "plurality of network service providers," (the "disputed phrases"), Plaintiff and Defendant stipulate that American Express's ExpressPay system and/or methods of using this system have not infringed and do not infringe the '464 patent.

This stipulation makes it very clear that if one is to accept the Court's "construction" of certain phrases in the SmartMetric Patent, then American Express does not infringe when using "contactless" or RFID cards. However, SmartMetric asserts with great confidence that the Court's construction of meaning is fundamentally wrong and flawed and that the Court has made a substantial error that SmartMetric, Inc. is confident will be overturned in a Higher Court.

While the company considers its legal options in appealing the Court's construction of certain words and phrases, SmartMetric, Inc. is free to litigate against Patent infringers who fall within the Court's own interpretation of the Patent, namely the use of "contact" cards to make a connection to a network.

5. The parties stipulate that each party should bear its own fees and costs, including attorney fees, in connection with this action.

Yesterday a rumor was spread on certain investor chat rooms that American Express is suing SmartMetric and its CEO, C. Hendrick, for legal costs. This erroneous rumor appears to be deliberate misinformation. As can be seen in section 5 of the joint stipulation: each party has agreed to bear their own costs.

About the SmartMetric:
The SmartMetric, Biometric Card Computer provides powerful computing with large memory capacity in a revolutionary size that has taken more than 10 years of research and development. Using the latest in sub micro technology electronics, the company has achieved a level of miniaturization that allows it to release a solution of portable computing power that combined with SmartMetric's biometric fingerprint in-card scanning technology, is so revolutionary it will change the way business is done and information is handled across a broad range of industries. For further information please go to the company website: www.smartmetric.com

Safe Harbor Statement:
Certain of the above statements contained in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors.

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