Vassallo Trust Announces Judgment Against Nayna Networks, Inc.

MINEOLA, N.Y., Feb. 14 /PRNewswire/ -- The Trust of Anthony Vassallo Jr. and Michael Vassallo announced that it intends to claim control of the outstanding shares in Nayna Networks, Inc.

The Vassallo trust entered a judgment in the amount of $348,821.39 against Nayna in the Superior Court of California on August 18, 2006. The judgment was entered based on an agreement between the trust and Rescon Technology Corp. This is the former name of the public company of Nayna Networks, Inc. This agreement is recorded with the Surpeme Court of New York.

In communications from Nayna's legal council dated Novebmer 13, 2006 and December 22, 2006, Nayna makes claims of insolvency and inability to pay the debt. They do however acknowledge the debt by offering Nayna shares in settlement of the matter. Nayna's council states, "Nayna has no cash, my client will probably be willing to offer stock as settlement. What kind of arrangement do you exactly have in mind?"

Nayna has addressed these events in their fillings and reports as they are obligated to be a fully reporting company with the Securities and Exchange Commission. In addition Nayna recently announced a buyout of a company called "PROSAT", a multi million dollar company. This leaves us asking ourselves which statement is true, "no cash" or "a buyout of a multi million dollar company".

The original agreement between the trust and Rescon refers to a lean on 72% of the company's outstanding shares. "This is the only acceptable settlement other than cash ... ", "I will stop at nothing to protect my children's future," stated Anthony Vassallo, a representative of the trust as well as a concerned parent.