Advanced Encryption Technology of Canada, Inc. Updates Lawsuit With Secured Communications Canada 95, Inc.

MISSISSAUGA, Ontario--(BUSINESS WIRE)--Sept. 3, 1998--Ken Andruski, President of Advanced Encryption Technology of Canada, Inc. (OTC BB:AETI), announced today an update concerning the lawsuit filed against AETI and others by Secured Communications Canada 95, Inc.

"On Friday August 21, we attended a hearing in that case. The solicitors representing Secured were not present," said Mr. Andruski.

At the conclusion of that hearing the Court ordered:

1. Secured pay $25,000 into court within 30 days as security

for the costs of Advanced, Andruski, Liow and Mak up to and inclusive of the examinations for discovery;

2. The action be stayed until the $25,000 has been paid into

the court;

3. Advanced, Andruski, Liow and Mak are entitled to make a

further motion for increased security for costs subsequent to the examinations for discovery; and

4. Advanced, Andruski, Liow and Mak are entitled to make a

motion without notice to Secured to have the action dismissed if Secured fails to pay $25,000into court as required by the order.

Advanced Encryption Technology of Canada, Inc., is a marketer of Advanced Encryption Technology Holdings' sophisticated technology and solutions for the privacy and security of data communications and computer disks, directories and files. The company markets a suite of data encryption products based on the "Access Denied" Smartcard System.

   CONTACT:  Advanced Encryption Technology of America, Inc.
              Steve Fox, 888/292-2384
                                   or
              Advanced Encryption Technology of Canada, Inc.
              Ken Andruski, President, 905/848-3666
                                   or
              Columbia Financial Group, Inc. (brokers and analysts)
              888/301-6271