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Oct 2, 2015

A Graceful Exit for ISC8 Inc. – Innovative Cybersecurity Company

Bankruptcy Court Confirms Liquidating Plan:

Santa Ana: ISC8 Inc. (“ISC8”) has obtained confirmation of its chapter 11 plan of liquidation (“Plan”) by order of the U.S. Bankruptcy Court entered September 14, 2015. The “effective date” of the Plan occurred September 14, 2015. By prior court order, the company sold substantially all of its operating assets – including its proprietary technology to detect and thwart hackers after they had breached protective firewalls – free and clear of all claims and interests under Section 363 of the Bankruptcy Code.

As provided in the Plan, all secured and priority creditors were paid in full unless they voluntarily agreed otherwise, and the Plan created a liquidating trust for the pro rata benefit of all holders of allowed general unsecured claims (“Liquidating Trust”). The Plan cancelled all equity interests in ISC8, prohibited any future public trading of ISC8’s stock (OTC: ISCI), and dissolved the company’s corporate entity, among other things.

The Liquidating Trust was funded with cash as well as any net recoveries on certain causes of action. Alfred M. Masse, who served as ISC8’s Chief Restructuring Officer, was appointed Trustee of the Liquidating Trust.

ISC8’s strategic and restructuring team was led by the company’s Chief Executive Officer, J. Kirsten Bay, and by Alfred M. Masse, the company’s CRO through Broadway Advisors, LLC. Management was advised by ISC8‘s legal counsel, Brutzkus Gubner LLP.

The Brutzkus Gubner LLP legal team was led by partners David Seror and Robyn B. Sokol, and by counsel Susan K. Seflin, with assistance provided by associate Jessica Bagdanov and partner Jerrold L. Bregman.

The Official Committee of Unsecured Creditors was advised by its legal counsel, Arent Fox LLP., whose legal team was led by partners Andrew I. Silfen and Aram Ordubegian, with assistance provided by associates Beth Brownstein and M. Douglas Flahaut.

The case is In re: ISC8 Inc., Bankr. C.D. Cal., Case No. 8:14-bk-15750-SC.

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