QualMark Corporation Prevails In Copyright Infringement Litigation.

DENVER -- QualMark Corporation (OTCBB: QMRK) today announced that on Friday, June 18, 2004, a Judge sitting in the United States District Court for the District of Colorado issued an Order granting QualMark's November 3, 2003, Motion for Summary Judgment.

The Judge's Order states that the summary judgment was granted based on Dr. Hobbs inability to prove ownership of the copyrights, and his argument was "insufficient to defeat summary judgment with respect to ownership of the seminar materials."(1) The Judge's Order also states that Hobbs and HEC (Hobbs Engineering Corporation) unambiguously conveyed to QualMark all intellectual property rights, including pre-September 1995 copyrights with respect to the seminar materials plaintiff Hobbs has put at issue in this case."(1) The Court finally ordered, adjudged, and decreed that "...defendant QualMark Corporation shall recover its attorneys' fees and costs."(1)

Based on the Judge's June 18, 2004, Order, the Company will submit an application for attorneys' fees and costs incurred since the commencement of this case and will seek to collect (from Hobbs) the entire amount to be awarded by the Judge. The Company also intends to vigorously pursue all available legal remedies, including injunctive relief, as appropriate, to prevent Hobbs and Hobbs Engineering (and those persons working for Hobbs Engineering) from conducting seminars using copyrighted material owned by QualMark.

The Court's Order granting summary judgment brings to a conclusion a year and a half long copyright infringement litigation commenced by Dr. Gregg K. Hobbs, a former director and officer of the Company. On March 10, 2003, the Company and other parties were served with a complaint filed in U.S. District Court in Denver, Colorado, by Dr. Hobbs alleging infringement of copyrights purportedly owned by Dr. Hobbs, in violation of the Copyright Act, 17 U.S.C. Sec. 101, as well as violation of Section 43(a) of the Lanham Act, 15 U.S.C. Sec. 1125(a) and common law unfair competition. The Company filed an answer on March 31, 2003, which denied all allegations of the complaint and on June 23, 2003, the Company asserted a counter-claim against Dr. Hobbs seeking damages for copyright infringement, alleging that Dr. Hobbs had sold all of his HALT- and HASS-related intellectual property to the Company in 1994 for valuable consideration. On November 3, 2003, the Company filed a motion for partial summary judgment, and on May 21, 2004, the Company filed a motion for leave to supplement the motion based on newly obtained documents. These motions were granted by the Judge on Friday, June 18, 2004. The Judge also dismissed, without prejudice, QualMark's counterclaim against Dr. Hobbs, so that QualMark may re-file this counterclaim in a new action. Finally, the Judge granted QualMark's motion for attorney's fees and costs, finding that "the flimsy legal justifications for (Hobbs') positions justify an award of attorneys' fees and costs."(1)

QualMark Corporation, headquartered in Denver, Colorado, is the leader in designing, marketing, and manufacturing accelerated life-testing systems, which provides the world's largest corporations with products that improve product reliability and allow a faster time to market. The Company has installed more than 500 of its proprietary testing systems in 18 countries and operates four of its own testing and consulting facilities in Denver, Colo.; Santa Clara, Calif.; Hopkinton, Mass.; and Huntington Beach, Calif. The Company also has established strategic alliances with large testing facilities throughout Europe and Asia-Pacific. The Company offers engineering services and products that complement the core technologies of QualMark and other test equipment providers.

(1) June 18, 2004, Order Granting Defendant QualMark Corporation's Motion for Partial Summary Judgment and Order Granting Defendant QualMark Corporation Motion for Leave to Supplement Motion for Partial Summary Judgment (Civil Action No. 03-WY-0196-AJ (MJW))

The statements included in this press release concerning the potential impact of the Hobb's litigation the Company's financial condition and management's view of the litigation constitute forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, factors detailed in the Company's Securities and Exchange Commission filings, the judge's decision on awarding attorneys' fees and costs, the impact of the motion ruling on the Company's other pending litigation with Dr. Hobbs, the Company's future cash flows, timing of any payment required to be made to Dr. Hobbs and other factors.