$6.9 Billion Navy Marine Corp Intranet -N/MCI- Contract Award Uses Kasten Chase RASP Secure Access System.

Business Editors

RESTON, Virginia--(BUSINESS WIRE)--Oct. 10, 2000

Kasten Chase (TSE:KCA.) today reconfirmed its bid participation with Electronic Data Systems (NYSE-EDS), the successful bidder for the $6.9 billion U.S. government joint Navy Marine Corp Intranet (N/MCI) project.

N/MCI is the largest Information Technology (IT) contract ever awarded by the U.S. federal government and is expected to be the largest private network in the world, signaling a strong move toward e-business.

The N/MCI initiative, which will service some 367,000 users, is intended to transfer the responsibility for providing and managing the vast majority of Navy and Marine Corps' desktop, server, infrastructure and communications assets to the commercial sector. This will include high assurance security systems and applications provided by Kasten Chase.

The four lead bidders - EDS, Computer Sciences Corporation, IBM, and General Dynamics - all selected and proposed Kasten Chase's RASP Secure Access to meet the stringent requirements for secure communications identified in the N/MCI Request for Proposal (RFP).

"It has been a truly gratifying experience partnering with four of the world's leading integration companies on such a prestigious and important project bid," said Alan Kittson, vice president of sales for RASP Secure Access. "They each quickly recognized and strongly endorsed the unique benefits and attributes of RASP Secure Access, ranging from its inherently high assurance security capabilities to its reliable operation, ease of implementation, simplicity of use and its proven ability to support large, widely deployed secure networks of users without compromise."

The N/MCI project is extensive, with a base contract that includes a minimum of 440,000 workstations, portable systems and servers to be deployed throughout 300 Navy and Marine Corps bases in the continental U.S., Iceland, Hawaii, Alaska, Puerto Rico, Guam and Guantanamo Bay, Cuba. The estimated value of the base contract is U.S. $4.1 billion, with an additional three-year option that brings the contract value to more than U.S. $6.9 billion. The potential value of the RASP Secure Access component for laptop computers is currently estimated as having a value of up to U.S. $15 million ($22.5 million CDN).

"The unanimous proposal of RASP by all four bidders for this major project, and the resulting inclusion of RASP Secure Access in the final project awarded to EDS, is a major accomplishment for a technology that was launched into the market such a short time ago," noted Jim Davies, president and chief operating officer at Kasten Chase. "When considered in conjunction with recent U.S. government awards for RASP Secure Solutions such as Scott Air Force Base and the U.S. Department of Energy, it is clear that our momentum is building and that the market sees significant value in our advanced, high assurance security products."

"This contract signals a leap forward in our efforts to create a strong, sustainable and predictable stream of long-term revenue growth," added Paul Hyde, Kasten Chase's chief executive officer. "We believe there is considerable room for additional opportunities for other RASP products such as RASP Secure Media and RASP Secure Access for fixed positions within this program. We also feel quite strongly that today's announcement represents only the dawning of new business development opportunities for RASP Secure Solutions as other U.S. federal agencies recognize the inherent benefits of the seat-management approach to IT taken by N/MCI."

"While much of the detail remains to be worked out, we anticipate that initial shipments will begin in early 2001 as assessment of the primary implementation begins," added Mr. Kittson. "Current estimates indicate that RASP Secure Access deployment will accelerate throughout the duration of the contract as the pace of system implementation increases and new opportunities for our RASP products are identified."

About RASP Secure Solutions

Certified by the U.S. National Security Agency, RASP Secure Access(TM) is the first complete remote access security solution designed to access and protect Government mission-critical information. When used in accordance with NSA policies and guidelines, RASP Secure Access may be used to protect Classified (up to and including the Secret-level) and Sensitive But Unclassified (SBU) data.

Portable and cost-effective, RASP Secure Access provides remote laptop users with secure, dial-up connections to local-area networks (LANs) from any location that offers a connection to the local telephone service. These remote users can access the same services available to users attached locally to the LAN. RASP Secure Access is a multi-faceted remote access security solution, providing user authentication and link encryption. It prevents unauthorized network access and protects against intercept attacks on data transmitted over public telephone lines.

RASP Secure Media(TM) is the only NSA-certified data-protection application that ensures the confidentiality and integrity of information stored on a personal computer. RASP Secure Media encrypts sensitive data stored on the PCs hard disk and removable media, including the operating system, system files, applications and user data. It protects all sensitive information stored on laptop and desktop PCs, and it works in conjunction with RASP Secure Access to safeguard data downloaded from secret networks.

To learn more, please visit www.rasp4secret.com.

About Kasten Chase

Kasten Chase is focused on providing technology for the purposes of delivering advanced, fully integrated data communications solutions in the areas of data security, Internet access and wireless data communications. The company is headquartered in Toronto, Canada with U.S. offices located in Reston, Virginia.

For further information, visit www.kastenchase.com.

About EDS

EDS is a recognized global leader in providing E-business and information technology services to 9,000 business and government clients in about 55 countries around the world. Having founded the IT services industry more than 35 years ago, EDS delivers high value management consulting, electronic business solutions, business process management, and systems and technology expertise to help clients simplify complexity and achieve superior value in the digital economy.

The company brings deep industry practice knowledge to solve challenges in a wide variety of industries, including communications, energy and chemicals, financial services, government, healthcare, products and retailing, and travel and transportation. EDS reported revenues of $18.5 billion in 1999. The company's stock is traded on the New York Stock Exchange and the London Stock Exchange. To find out more about the EDS vision, visit EDS via the Internet at http://www.eds.com.