MedCom USA, Inc. Announces Subsidiary Company's Patent Infringement Lawsuits Against McDonald's and Walgreen

MedCom USA, Inc. announced today that its new Chicago subsidiary, Card Activation Technologies Inc., through its law firm, Orum & Roth, LLC, has initiated lawsuits against McDonald’s Corporation and Walgreen Co. for infringing its payment transaction patent.

According to Bill Bednarski, COO of MedCom USA, “We have engaged Orum & Roth, LLC to work with us to solicit and obtain license agreements from those companies that have been utilizing our patented payment transaction technology. Orum & Roth LLC is continuing to contact other entities, including retailers and product suppliers, to provide them with a licensing agreement that will permit them to practice the patented technology.”

As previously reported (August 1, 2006) MedCom USA, Inc. intends to spin off the payment transaction technology into a separate publicly traded company. Under the current plan, shareholders will receive, as a dividend, a share in the new entity for each share of MedCom USA, Inc. they own on the record date, which will be announced in the near future.

Additionally, as announced September 18, 2006, MedCom USA, Inc. will retain a substantial interest in the new company, Card Activation Technologies, Inc. MedCom USA Inc. and Card Activation Technologies, Inc. acquired all rights in the patent through New View Technologies, Inc.