Advanced Encryption Technology - Court Dismisses Action Against Advanced Encryption Technology.

LONG BEACH, Calif.--(BUSINESS WIRE)--Sept. 28, 1998-- Mr. Steven Fox, President of Advanced Encryption Technology of America, Inc. (OTC BB: AETI), announced today that the lawsuit brought against Advanced Encryption Technology, Inc., Ken Andruski, Scavin Liow and McKen Mak ("the defendants") by Secured Communication Canada 95 Inc. was heard by Master Peppiatt of the Ontario Court in the morning on Friday September 25, 1998.

Master Peppiatt ordered that:

(1) the action be dismissed against the defendants; and

(2) the costs of the action and the motion be fixed and be paid by Secured Communication Canada 95 Inc. to the defendants.

"The fact, that the court has found the action intiated by Secured Communication Canada 95 Inc. to be without merit, vindicates the defendants. This ruling has brought to an end, a situation that was fraught with malicious intent to do nothing but discredit the defendants' good names, and to direct unwarranted suspicion on the company's product development," said Mr. Fox. "With this behind us, we can now move forward in a very positive manner, and become the force in the industry that we had originally anticipated that we would become," he concluded.

Advanced Encryption Technology, 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 AccessDenied suite of products capitalizes on leading-edge smart card 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 data encryption for confidentiality. AETI continues to be the leader in the cryptographic field with its technology advancements.