Competitive Technologies, Inc. Rolls-Out "Digital Ink, Inc." - A New Digital Wireless Pen Start-up Company.

- Pen Input device converts handwriting into

digital text for easy Internet access -

- Set to hit Internet, e-commerce, digital communications 

markets within a year -

- CTT provides a "one-stop-shop" of incubation

services for Start-up DI2 -

- Technology utilizes proprietary navigation,

sensor and software technologies -

Competitive Technologies, Inc. (AMEX:CTT) announced today the formal roll-out of Digital Ink, Inc. (DI2), a Brookline, MA, based start-up which has developed a proprietary wireless pen input device and technology for converting natural handwriting into computer format for improved access and communications with the Internet and other digital devices and networks.

CTT obtained a 15% equity stake in DI2 in exchange for its role in successfully raising seed funding on its behalf and providing essential business, technical and legal incubation services on an on-going basis.

DI2 expects to have a fully working prototype available by the end of the year and is already in discussions with major European, US and Japanese corporations about collaborating on a variety of new product concepts, ranging from easy input digital cell phones, to pen-activated internet appliances, wearable computers and intelligent watches with products expected to reach market within 18 months.

Ilya Schiller, Co-Founder and President of DI2 comments "We have applied our sensor, navigation and positioning expertise gained through military and commercial assignments over the last 30 years to provide an elegant solution to recording a person's handwriting and drawings, and then seamlessly converting them into computer readable form for recording notes, sending instant email and fax messages, providing signature authorization and even giving computer commands. Our goal is to offer products which bridge the gap between the human art form of handwriting and the digital worlds of the Internet and e-commerce, making communications between these worlds more creative, convenient and cost effective."

Dr. Peter D. Holden, Senior VP of CTT comments "The co-founders of DI2 are world-class inventors with remarkable technology. Together, we are adapting their highly specialized navigation and sensor expertise - which was used to design guidance systems for cruise missiles in the Cold War - towards the development of a new generation of data input devices for the digital age. Within six months, we have succeeded in advancing DI2 from a business concept to a funded, fully operational company with all the professional services support required to make it a success."

Dr Holden adds, "World-class R&D, particularly in the high growth areas such as the Internet and wireless communications, are now more likely to originate from start-up companies than large corporate R&D centers. By focusing on this sector and offering an integrated package of services, coupled with improved access to funds through our close ties with the venture capital and private angel communities, CTT can leverage significant equity and royalty-based positions in these exciting new companies. Our partnership with Digital Ink is precisely the kind of new venture activity that CTT plans to replicate on a on-going basis from now on."

Background:

DI2's pen will look like a normal pen without requiring special writing pads or other peripheral devices, and can be used to write on any surface. This makes it highly suitable to both low cost consumer as well as high-end professional and business-to-business markets. DI2's ingenious solution measures position and movement in absolute terms with excellent accuracy and repeatability compared with other emerging competing systems, whilst utilizing low cost, off-the-shelf components and electronics.

The idea of being able to convert handwritten text into digital has been explored intensively over the last 10 years as a more effective means of communicating with computer devices and, more recently, Internet appliances, digital phones and PDAs. Some companies have tried complex optical and image analysis solutions that, while offering moderate handwriting capture and digital conversion capabilities have proven to be too expensive, bulky and difficult to use. Other companies have tried defining the position movements of the pen nib and, through software algorithms and intensive processing, converting these into digital text. These systems though have suffered a fatal flaw in that the movement of the pen relative to the notepad or other writing material creates significant cumulative errors caused by indiscernible movements of the pen in the hand and across the paper.

Competitive Technologies, Inc.

Competitive Technologies is a global leader in the identification, development and commercialization of innovative technologies in the areas of life sciences, physical sciences and digital technologies. Competitive Technologies' specialized expertise and experience make it a valuable partner for companies of all sizes within the area of technology commercialization. CTT has evaluated more than 25,000 technologies and has been responsible for closing hundreds of license agreements.

Important CTT clients and licensees include: Sony, Lucent Technologies, Matsushita Electric Industrial, and Ribozyme Pharmaceuticals, Inc., among others. Competitive Technologies, Inc. is based in Fairfield, CT with affiliates in Osaka, Japan and London, England.

Digital Ink, Inc.: Further details on Digital Ink, Inc are available by request