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SBN has defended its patents successfully in the past as indicated in announcement below in 2008.

Avitar Litigation
As advised in the April 2008 investor update a settlement of the claim against Avitar has now been
agreed upon, the terms of which are confidential. Although no cash amount was involved, the Board
believes that the outcome of this settlement was positive for SBN as, under the terms of the settlement,
Avitar has acknowledged the validity of SBNs patents (US patent nos. 6,046,058, 5,962,336,
6,372,516, 7,041,253 and 7,300,627) and that Avitar does not own, or claim to own, any right, title,
ownership interest, or any other interest in these patents, and that SBN has licensed the use of these
patents to Avitar.

KENS