Juridica, a leading provider of capital to the law market, provides the following portfolio update.

The Company is pleased to report a new investment in a patent portfolio from a Fortune 500 company and a supplemental investment in an existing case that insures a minimum return on the investment.

On 4 June 2010, Juridica made a $1.5 million investment in a new patent matter designated Case 0210-M. This is the Company’s second acquisition of a patent portfolio asset directly from a Fortune 500 company. The patent portfolio covers digital advertising technology where the claimholder expects a complaint to be filed against seven or more defendants during the third quarter of 2010. This new investment has broadened Juridica’s relationships which now include an additional Am Law 100 firm and one of the top intellectual property trial lawyers in the US.

On 22 April 2010, Juridica made a $400,000 supplemental investment in Case 6509-A by purchasing an insurance contract that provides certainty to Juridica’s minimum returns from this case. The underlying case involves a significant judgement for breach of contract, fraud and related claims. The judgement was rendered in a US Federal court and is currently under appeal. Obtaining this insurance contract reflects the Company’s strategy to manage investment risk and its desire to lock-in returns when appropriate. The terms of the insurance contract provide that the insurer will pay the Company either:

• $4.0 million if the case fails on appeal or at any future trial if the case is remanded for a new trial;
• the difference between $4.0 million and any settlement less than $4.0 million; or
• $4.0 million if the case is not completed within five years from the policy’s date of inception.

Juridica’s initial investment in Case 6509-A was $2.0 million. Once this case is resolved, the Company is entitled to a return of its $2.0 investment plus a premium calculated with regard to the time elapsed from the date of investment to the date of final resolution which, depending on timing, ranges from $2.0 million to $5.5 million.

Richard W. Fields, Chairman and Chief Executive of Juridica Capital Management, the Investment Manager, said: “We are delighted that an A.M. Best Company ‘A’ rated insurer has recognised the investment quality of our portfolio. This insurance policy is an industry first and eliminates Juridica’s risk profile for this particular investment.”

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