The United States Patent and Trademark Office ("PTO") issued a notice upholding all claims of CollegeNET's US patent no. 6,460,042 (the '042 patent) and closing its reexamination of that patent. These claims include 31 claims unchanged from the original patent granted by the PTO in 2002, 13 claims voluntarily amended by CollegeNET, and 9 new claims added by CollegeNET during the reexamination procedure. This latest and important action by the PTO reaffirms and strengthens CollegeNET's intellectual property rights to key technology and processes which underlie, among other things, the modern processing of web-based admissions applications for colleges and universities by commercial servicers.

This latest win by CollegeNET is a major step towards crumbling the various legal roadblocks erected by proven and alleged infringers in their continuing attempt to sustain unauthorized and unpaid usage of CollegeNET's valid intellectual property. Infringement of CollegeNET's '042 patent by ApplyYourself, Inc. of Fairfax, VA has already been proven in federal court and upheld on appeal to the Federal Circuit. Nonetheless, payment of over $1 million in damages by ApplyYourself to CollegeNET for past infringement of the '042 patent has been forestalled owing to various legal maneuverings by ApplyYourself, XAP Corporation, The Common Application, and The Princeton Review. One such maneuver--a request for "ex parte reexamination" of the '042 patent by The Princeton Review--led to the proceedings which have now been ended by the PTO.

While the PTO's affirmation of the '042 patent reinforces damages awarded to CollegeNET in the CollegeNET vs. ApplyYourself case, it does not impact the $8.5 million in damages awarded to CollegeNET in October, 2006 in the CollegeNET vs. XAP case. Those damages pertained to XAP's infringement of a separate patent of CollegeNET known as the '278 patent and to XAP's unfair competition in violation of the Lanham Act. Nor does the PTO's decision affect the judge's decision last March to award reasonable attorneys' fees to CollegeNET in view of XAP's willfully deceptive misconduct.

Tiffany Souza, CollegeNET associate vice president and corporate counsel, stated, "The PTO's decision on the '042 patent is an important affirmation of the validity of CollegeNET's intellectual property rights. It was CollegeNET's innovation and risk-taking beginning ten years ago that paved the way for the widespread acceptance of the web for applying to college. By using the application processing services powered by CollegeNET's patented technology, our customers don't have to worry about the operational, payment, and security risks related to hosting web-based applications." Ms. Souza continued, "Now that the claims of the '042 patent have been confirmed, perhaps infringers will take note and get out of denial mode."

About CollegeNET, Inc.
CollegeNET, Inc. is focused on web-based, on-demand technologies that save institutions money and improve educational access and affordability for citizens. The company provides innovations in event and academic scheduling, decision support, admissions, web-based tuition processing, prospect management, alumni development, and course evaluation to colleges, universities, and nonprofits worldwide. More than 1,000 institutions use CollegeNET solutions. The company is headquartered in Portland, OR.

For more information, please contact Paul Casey, Director of Corporate Communications, CollegeNET. Phone: 503.973.5200. Fax: 503.973.5252.