[0] XTec and SEMTEK Unveil ``THE CUBE''; At Booth 830 - Card Tech/SecurTech 2000, May 1-4 - Miami Beach, Florida.

Business Editors/Technology Writers

CardTech/SecurTech 2000

MIAMI--(BUSINESS WIRE)--May 1, 2000

XTec and SEMTEK will showcase "THE CUBE"(TM) at CardTech SecurTech's advanced card and security technology conference in Miami Beach, Florida.

Developed jointly by XTec and SEMTEK - recognized leaders in secure micro-controllers and magnetic stripe technologies - "THE CUBE" is a tamper resistant, remotely programmable, universal chip and magnetic card acceptor that offers unmatched privacy, security, and functionality. It is the only off the shelf universal card acceptor that can accommodate magnetic cards, inexpensive memory chip cards, and smart card technologies.

"THE CUBE" is a "trusted" card acceptor that can be deployed in just about any environment - home, merchant, network, or enterprise. It is designed to provide absolute privacy and authentication for all types of tokens and transactions including secure logon, online purchases, e-mail, stored value transaction, as well as for data entered on a keyboard, PIN pad, or other peripherals.

"THE CUBE" brings together XTec's Mediametric(TM) Security Processor, with SEMTEK's Mediametric SECURE-STRIPE(TM) technology. This powerful combination makes the "THE CUBE" the only card acceptor in the market today that can unequivocally validate the authenticity of standard magnetic cards and memory cards in the field, without the need of communicating with a central database.

"One of the barriers to exponential growth in E-business has been the issues surrounding privacy and authentication", said Albert Fernandez, President and CEO of XTec. "Authentication requires that a 'trusted agent' validate at least two of the following things - something you have, something you know, and something you are. THE CUBE is designed to be that 'trusted agent', regardless of where - home, business, or merchant - the transaction is taking place," he added.

"THE CUBE's" value goes beyond providing a critical building block for secure E-business systems," explained Bob Mos, President of SEMTEK. "This card acceptor will have a major impact on reducing the ever-growing problem of identity theft through skimming. Unlawful duplicates of magnetic stripe cards - the most common form of identity theft - can be detected by the device without the need of modifying existing infrastructure or maintaining a centralized database. Transactions by perpetrators using duplicate cards can therefore be rejected and the point of interaction ," he added.

What is Mediametrics?

Mediametrics is a technology grouping engineered to offer a universal security solution that can be applied to multiple mediums and operating environments. It is not limited in scope or application to any specific medium, device, industry, or environment.

Similar to biometric technology, Magnetic Mediametrics is based on the precise measurement of the physical properties of the objects that are used to record information. It determines the authenticity of data by the measurement of the anomalies introduced by the inherent imperfections in the storage media.

Memory Mediametrics uses the same concept to secure EEPROM memory and inexpensive memory chips. When information is stored in an EEPROM memory cell, it is stored as a series of binary numbers. Typically, a "large" charge injected into the cell's floating gate represents a binary zero, while a "small" charge represents a binary one. The actual level of the charge is impossible to accurately control, but it can be precisely measured. It is the measurement of these charges that is used to create a unique fingerprint.

Mediametric(TM) Security Processors provide out-of-band security which, combined with code protection, can be used to produce highly secure, versatile, trusted devices with integrated cryptography and key management capabilities. Mediametric Security Processors are used in applications where there is a need for trusted and secure storage of data, remote programming, and irrefutable authentication. Devices equipped with Mediametric Security Processors can be used to authenticate external tokens such as magnetic, chip and memory cards.

Mediametrics guarantees the authenticity of data, documents, chips, cards, as well as their respective content.

What is SECURE-STRIPE?

An authentication technology for magnetic stripe credit or debit cards. Each card becomes a secure token. The authentication of the magnetic card is done by identifying and verifying the magnetic signature on each card. SECURE-STRIPE...

-- Assures the authenticity of the card.

-- Assures security of transaction data transmissions over networks, including
the Internet with a "trusted" transaction terminal, module or components.

-- Readers are low cost, compared with those using current technology.

-- Allows the use of low cost magnetic stripe cards for secure applications.

-- Detects fraudulent duplicated and copied cards.

XTec Incorporated is an independent developer, producer, and licensor of security solutions for electronic commerce, domain and key management, transaction and data processing, access control, communications, and information systems. XTec was founded in 1990, and is headquartered in Miami, Florida. The Company's products, services, and operating systems are based on its proprietary Mediametric technology. Mediametrics is a revolutionary technology founded on the premise that it will always be possible to measure a physical quantity more precisely than it can be duplicated -- the Magnetic Fingerprint(TM). XTec's technology enables others to securely process, store, and manage their proprietary information. XTec's patents, engineers, and development teams are highly respected by the cryptographic community. The Company is well versed in the integration of their Mediametric technology to a vast array of electronic commerce, communications, and access control applications.

SEMTEK I.S. Corporation is an independent company with extensive experience in the manufacturing of products for the transaction card market. SEMTEK was founded in 1998, and is headquartered in San Diego, California. The Company has manufacturing capabilities in San Diego, Korea, and China. Initially, SEMTEK concentrated on the development of standard magnetic stripe card products. Today, the Company's patents and technologies are being applied and incorporated to a number of innovative product solutions related to e-commerce, gaming, financial transactions, point-of-sale transactions, and many other commercial applications. SEMTEK's senior management and technical staff have over 30 years of experience in the field of transaction product design and manufacturing. SEMTEK's products are widely distributed in Americas and Europe.

Mediametric(TM)and Magnetic Fingerprint(TM)is a registered trademark of XTec Incorporated SECURE-STRIPE(TM)is a registered trademark of SEMTEK I.S. Corporation