For Immediate Release

RICHMOND, BC, CANADA – August 30, 2005

zCover Launches Counterclaim Against iSkin and Others 

zCover Inc. (“zCover”) has launched a counterclaim against iSkin Inc. (“iSkin”) in the parties’ ongoing litigation before the Ontario Superior Court of Justice.  zCover has also added Andrew Ackloo, the President of iSkin, and two iSkin employees, Ivan Harrilal and Julie Lee (collectively, the “Individual Defendants”), as defendants to the counterclaim.

 zCover’s counterclaim is based on its view that iSkin and the Individual Defendants have acted in concert in misusing zCover’s confidential and proprietary manufacturing techniques, in intentionally interfering with zCover’s business relations, and in causing damage to zCover’s trade-mark and goodwill in the marketplace. 

 Specifically, zCover alleges that iSkin and the Individual Defendants have, among others, (1) used zCover’s confidential information to manufacture iSkin products; (2) unlawfully registered various internet domain names including “zcover.net”, “zcover.info”, “zcover.biz”, and “zcover.co.uk”; (3) sent repeated emails and letters to zCover’s customers and potential customers threatening lawsuits should they deal with zCover; and (4) sent repeated anonymous emails to zCover threatening retribution for its defence of this lawsuit and its lawful business activities in the market.

 This lawsuit was initiated by iSkin on May 11, 2005 (iSkin Inc. v. Sa et al., Court File No. 05-CV-289300PD1).  iSkin has in the past contracted with zCover’s affiliated company, SA Group Ltd. (“SA Group”), to manufacture iSkin products.  SA Group has also counterclaimed against iSkin, alleging, amongst others, that iSkin has breached its supply contract with SA Group and currently owes SA Group payment for products worth in excess of US$370,000.

 On May 13, 2005, iSkin brought a motion to enjoin zCover from marketing its line of silicone protective cases.  zCover was wholly successful in defending this motion and currently markets one of the most comprehensive line of silicone protective cases in the industry.

 zCover is confident in the merits of its case and believe that it will emerge victorious from this litigation.

 zCover is represented by Gilbert’s LLP, a law firm in Toronto, Ontario.

 If you need more information, please contact zCover at info@zcover.com.

©2005 zCover, Inc. All products, services and company names are trademarks, registered trademarks or service marks of their respective owners.  Information in media advisories including without limitation product prices, specification, content of services, and contact information, is current on the date of the press announcement, but is subject to change without notice.