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Counsel Corporation Subsidiary, C2 Communications Technologies Inc., Files Patent Infringement Lawsuit Against Telecommunications Companies

Counsel Corporation (TSX: CXS) today announced that C2 Communications Technologies Inc. ("C2"), a wholly-owned subsidiary of C2 Global Technologies Inc. (OTCBB: COBT), has filed a patent infringement lawsuit against AT&T, Inc., Verizon Communications, Inc., Qwest Communications International, Inc., Bellsouth Corporation, Sprint Nextel Corporation, Global Crossing Limited, and Level 3 Communications, Inc. Counsel Corporation owns approximately 91% of C2 Global Technologies Inc.

The complaint was filed in the Marshall Division of the United States District Court for the Eastern District of Texas and alleges that the defendants' services and systems utilizing Voice over Internet Protocol ("VoIP") infringe C2's U.S. Patent No. 6,243,373, entitled "Method and Apparatus for Implementing a Computer Network/Internet Telephone System". The complaint seeks an injunction, monetary damages and costs.

C2 is represented in this litigation by Susman Godfrey, LLP and Monts & Ware, LLP.

About Counsel Corporation

Counsel Corporation (TSX: CXS) is a diversified company focused on the acquisition of businesses in diverse industry sectors and at various stages of their business life cycles. Its goal for acquired businesses is to create value within these businesses and to realize on the value creation at the appropriate time. Counsel currently operates in four specific sectors: long-term care, real estate, patent licensing and custom case goods. For further information, visit Counsel's website at www.counselcorp.com.

Forward-Looking Statements

The statements made in this release that are not historical facts contain forward-looking information that involves risks and uncertainties. All statements, other than statements of historical facts, which address Counsel Corporation's expectations, should be considered as forward-looking statements. Such statements are based on knowledge of the environment in which the Company currently operates, but because of the factors listed herein, as well as other factors beyond Counsel Corporation's control, actual results may differ materially from the expectations expressed in the forward-looking statements. Important factors that may cause actual results to differ from anticipated results include, but are not limited to, obtaining necessary approvals and other risks detailed from time to time in the Company's securities and other regulatory filings.

Contacts:Counsel CorporationStephen WeintraubExecutive Vice President, Secretary & CFO(416) 866-3058sweintraub@counselcorp.com

Monts & Ware, LLPLeslie D. WarePartner(214) 744-5000

SOURCE:  Counsel Corporation

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