Advanced Encryption Technology, Inc. Signs $40 Million in Contract.

LONG BEACH, Calif.--(BUSINESS WIRE)--April 21, 1998--Steve Fox, President of Advanced Encryption Technology of America, Inc. OTC-BB: AETI. Announced today the signing of 40 million dollars in contracts since December of 1997. The contracts range from one year to three years, with the 40 million dollars being generated over the life of the contracts.

Dec. 4/ Contract with X-Border Communications Inc., a Canadian reseller specializing in information security and telecommunications products. The agreement is for 3 years and enables X-Border Communications, Inc. to act as a reseller and will market AETI's product in the province of Manitoba and to Canadian Telecom companies nationwide. The agreement calls for a minimum of 4.5 million dollars over 3 years. The agreement could exceed 10.5 million dollars over its term of 3.5 million dollars a year.

Jan. 22/ Contract with Midisonic S.L., one of Spains premiere distributors of computer and telecommunications products, with sales offices throughout Spain and Portugal. The agreement has a potential of $11 million over 3 years, with a minimum of $2 million during the first year.

Feb. 3/ Contract with The Adler Group, a sales and marketing agency based in Arlington VA, with sales associates in the Washington D.C. area. The multi- year agreement gives the Adler Group exclusive rights to market the Access denied suite of secured data products on behalf of AETI to all U.S. Government, Military, and Commercial clients in the Washington D.C. area. The agreement provides for a minimum of $12 million in sales during 1998 and is effective immediately.

Mar. 16/ Contract with Chrysalis-Its, an Ottawa, Canada based developer of information security products using PCMCIA tokens. The multi-year agreement gives AETI the rights to sell the Chrysalis-Its suite of data security products in Europe and Latin America. The agreement has the potential of 6.5 million dollars over 3 years and is expected to generate 2.5 million dollars in revenue during the first year.

"We are very happy with the success the company has had since coming out of research and development", says Steve Fox President of AETI, and "with our unique suite of Access Denied products, we feel that our growth will escalate substantially."

Advanced Encryption Technology of America, Inc. is a developer, manufacturer, licenser/licensee and supplier of cryptographic software and hardware solutions to militaries, governments, and fortune 500 customers. The company's Access Denied suite of products capitalizes on leading-edge smartcard and software technology which presents customers with cost- effective, general purpose security tokens, plug-in cryptographic subsystems (APIs and libraries) and off-the-shelf cryptographic controls for user identification, network access for authentication, digital signatures for integrity, and date encryption for confidentiality. Advanced Encryption Technology holdings has sales offices in Mississauga, Ontario: Ottawa, Ontario; Long Beach, California; and Amsterdam, Holland.

CONTACT: Advanced Encryption Technology

Ken Andruski, 905/848-3666

or

Columbia Financial Group,Inc.

Brokers and Analysts, 888/301-6271. (AETI)