BioNet Systems, LLC, Sells Net Nanny Internet Safety Solution in $5.3 Million Transaction.

Business Editors/High-Tech Writers

ISSAQUAH, Wash.--(BUSINESS WIRE)--April 29, 2004

Company to Focus on BioPassword(R), the Leading Keystroke 

Biometrics Strong User Authentication Technology

BioNet Systems, LLC, a provider of software solutions that secure access to critical data and network resources, announced today that it has completed the sale of its Net Nanny software products to LookSmart Ltd., in a $5.3 million cash and stock transaction. Net Nanny, the first parental Internet safety and control software, was introduced in December 1994, and has become the world's brand-name leader in consumer Internet filtering.

"BioNet Systems has long prided itself on addressing the growing need to control access to mission-critical computer data and give users the freedom to choose options that match their individual needs and value systems," said Mark DiSalle, chief executive officer of BioNet Systems. "While Net Nanny has been a very successful product for BioNet Systems and for the millions of parents who rely upon it, given the heightened demand and market growth for security solutions worldwide, we are turning our complete focus to the increased development, marketing and sales efforts for BioPassword, our patented strong user authentication biometric technology."

LookSmart, a leader in commercial search services and a developer of innovative web search solutions, plans to not only continue the existing Net Nanny consumer sales channel but to also integrate its web search technology into Net Nanny in order to offer a family-friendly experience in the area of online searching.

BioPassword is a patented, software-only solution that uses keystroke dynamics, a security technology based on biometrics, to accurately identify a user by the way they type. BioPassword solves the two main problems associated with this popular security standard: password stealing and sharing. BioPassword solutions are licensed to thousands of users at over thirty global organizations through its large network of technology partners and resellers. Major customers include market leaders in the financial, healthcare, government, and media and entertainment industries.

Biometric technologies are automated methods of recognizing a person based on physiological or behavioral characteristics. By 2005, worldwide spending on IT security will grow to $37 billion, according to technology research firm, IDC, and the International Biometric Group, LLC, states that worldwide biometric sales are expected to top $4 billion by 2007. Until recently, fingerprints, facial recognition and iris scans were considered the major biometric products for strong user authentication. However, BioPassword's keystroke dynamics solution has several advantages over other biometric offerings: it is a software-only solution that requires no additional hardware to purchase, install, maintain, and replace; it requires no specialized knowledge to use or maintain, it is a layer of security that can be used in conjunction with other security mechanisms; and it is the most cost effective method of two-factor authentication available on the market today.

BioNet Systems' management team, led by founder and chief executive officer Mark DiSalle, has a strong track record of identifying and acquiring cutting-edge technologies and developing them to their full potential. In 2002, BioNet Systems acquired the assets of Net Nanny Software International, Inc., moving them out of bankruptcy and firmly into profitability while continuing to grow the technology and the brand. In 2002, BioNet Systems also acquired all rights to the technology, trade secrets and patents for BioPassword, and it intends to apply similar techniques and resources to expand the market share for this innovative product.

About BioNet Systems, LLC

BioNet Systems, LLC, a privately held company located in Issaquah, Washington, is a provider of software solutions that secure access to critical data and network resources, while improving process efficiencies and decreasing IT costs. The company's flagship product, BioPassword(R), is a patented software-only solution that uses keystroke dynamics, a security technology based on biometrics, to accurately identify a user by the way they type. Product offerings include BioPassword(R) 4.6 for enterprise networks, BioPassword(R) SDK 2.0 for developers, and BP-127(TM) BioPassword(R) Logon Protection 4.5 for individual workstations.

About LookSmart Ltd.

LookSmart is a leader in commercial search services and a developer of innovative web search solutions. The Company provides consumers with highly relevant search results through a distribution network that includes LookSmart.com and other top portals and ISPs, while delivering targeted sales leads to online businesses. LookSmart is based in San Francisco, California. For more information, visit www.looksmart.com