Peerless Applauds the U.S. District Court, Northern District of Illinois Decisions

Federal Court Invalidates Neutral Tandem Patent 7,123,708

CHICAGO--(BUSINESS WIRE)-- Peerless Network Inc. is pleased with the decision of the U.S. District Court, Northern District of Illinois, Eastern Division to award summary judgment invalidating Neutral Tandem’s Patent 7,123,708. In addition to granting summary judgment against Neutral Tandem (NASDAQ:TNDM) and in favor of Peerless and John Barnicle, the court’s order permits Peerless to proceed with its counterclaims against Neutral Tandem.

“This is clearly a case of David vs. Goliath. Neutral Tandem could not stop us on the playing field and had to use its last resort of defending an invalid patent in the Courts,” stated John Barnicle, CEO and President of Peerless Network. “This victory was only possible with the strong support of our customers and the focus of our dedicated team members. This support has allowed Peerless to become cash flow and EBITDA positive even while defending this baseless legal action. I personally want to thank everyone for their support.”

The Court’s decision also denied Neutral Tandem’s motion for summary judgment on Peerless’ counterclaims, including Peerless’ claim that Neutral Tandem engaged in inequitable conduct before the U.S. Patent and Trademark Office. Peerless intends to pursue these claims aggressively. “No organization should be allowed to manipulate our court system to try to gain a competitive edge in the marketplace,” stated Barnicle “We believe that Neutral Tandem’s conduct needs to be addressed by the Court, and we will take the appropriate steps to ensure that others do not have to invest time and resources to defend their position in the marketplace.”

About Peerless Network

Peerless Network is a fully funded, privately held company focused on simplifying the interconnection process for other telecommunications service providers via a wide range of innovative services. Based in Chicago, the company currently delivers services in New York, Atlanta, Chicago, Miami, New York, Philadelphia, New Jersey, Connecticut, San Diego, Los Angeles, Orlando, Tampa, Indianapolis, Columbus, San Jose, Milwaukee, San Francisco, Minneapolis/St. Paul and St. Louis. Peerless is currently certified to provide a wide range of telecommunications services in twenty-three states. More information is available at www.peerlessnetwork.com.

CONTACT:

Pipeline Media Relations
Matt Batt, (847) 201-6588 ext. 222
matt.batt@pipelinemediarelations.com

KEYWORDS:   United States  North America  Illinois

INDUSTRY KEYWORDS:   Technology  Data Management  Internet  Networks  Telecommunications  Other Technology  Mobile/Wireless  VoIP  Professional Services  Legal

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