Arbitrators Decide That Microsoft is Not Obligated to Pay REFAC Any Additional License Fee Under the Priest Patent.

NEW YORK--(BUSINESS WIRE)--Oct. 16, 1998--In May, 1997 REFAC Technology Development Corporation's (AMEX: REF) patent licensing subsidiary, REFAC International, Ltd., and Microsoft Corporation signed a non-exclusive License Agreement under U.S. Patent No. 5,167,011 (the "Priest Patent") which describes the systems for coordinating information storage and retrieval. Both parties agreed to keep the terms of the License Agreement confidential except for the fact that the amount of the license fee would be determined through an arbitration proceeding. This proceeding was conducted in August and the arbitrators have decided that no further license fee is payable by Microsoft for a license under the Priest Patent.

Robert L. Tuchman, REFAC's President and Chief Executive Officer stated that "While we are naturally disappointed with the results of the arbitration, we think that it provided a reasonable procedure for resolving a complex patent matter in a timely and cost effective manner. We are glad to have Microsoft as a licensee and appreciate the professional manner in which it conducted itself throughout the entire process."

REFAC is a leader in technology, product and trademark licensing, and in the industrial design and engineering of consumer products, medical devices and business equipment. The Company's expertise centers on its ability to maximize the earning potential of intellectual property rights through creative licensing strategies, enterprising brand extension ventures, and entrepreneurial product design/engineering programs.