Biodata ensures compliance with HIPAA Regulations; Advanced Acoustical Concepts Uses BabylonMETA To Deliver Encryption To Its Telemedicine Customers.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--November 30, 2000

Biodata Information Technology, (BIT:GR) the global leader in network and communications security, has announced the formation of a strategic alliance with Advanced Acoustical Concepts (AAC), the leading provider of telemedicine technology.

The alliance will provide Biodata's world-class encryption products to AAC's portfolio of clients, including those in the medical industry required to meet the federal Health Insurance Portability and Accountability Act (HIPAA) standards for protecting the privacy of patient information.

The new US privacy legislation requires healthcare providers and related organizations to strengthen their IT security regulations, which includes technical guidance as well as administrative requirements for doctors and hospitals that transmit confidential patient information over voice and data networks. The HIPAA mandates that organizations protect all electronic health information from improper access or alteration and that health information about individuals be protected during transmission.

In an ongoing effort to secure a technological advantage in providing its customers a first rate means of meeting HIPAA compliance, AAC will now offer Biodata's high-speed encryption solution, BabylonMETA, as part of their core competency to ensure the integrity and confidentiality of health information. BabylonMETA will be integrated into AAC's full line of telemedicine products, including Med Rover, a medical diagnostic cart that can transmit medical exams to remote locations for long distance consultation. AAC is applying Biodata's security products into an initiative with the United Nations to provide telemedicine support from the US to children's hospitals in third world countries and into other services it offers to multi-national corporations and a number of high level government organizations.

Biodata's BabylonMETA is the only encryption device that secures multipoint audio and video conferencing. With its Automated Line Encryption System, BabylonMETA encrypts voice, data, fax and video conferencing in a discrete manner. Every communications session with Babylon equipped partners is secure against illicit interception. BabylonMETA is based on the globally recognized Data Encryption Standard DES3. Even with a clustering of several computers programmed to try out all of the possible combinations, years of processing would be required to crack the encryption. As an added level of security, BabylonMETA generates a new key string for every communication.

"Biodata's technology is helping us give our customers the highest level of security available for their communications," said Dr. Terry Torbeck of AAC. "This allows us to offer our telemedicine customers a means of meeting the HIPAA standards that came into effect this year and protect the confidentiality of the patients who need this service for important and often life saving consultations."

"All ISDN communications can be secretly monitored, including dial-up and leased-line voice, fax, data transfer and video conferencing," said Al Ewers, CSO of Biodata Information Technology. "Unaware of this danger, companies lose important information, research results and data that were only meant for internal use. The ability to encrypt medical communications and build patient's trust that the transfer of their medical information through cyberspace will not violate the confidentiality of the doctor-patient relationship is vital if telemedicine is to prosper as a means of conducting long distance examinations."

Already Biodata's BabylonMETA is a market leader, accounting for 85% of commercial audio and video conferencing encryption worldwide. Biodata, the leading provider of IT Security Solutions in Europe and Asia, is quickly establishing itself as major player in the US market. Its corporate and personal firewall and encryption products are technology leaders, offering better defence with a wider range of features than their competitors. AAC is a Biodata Platinum Partner.

About Biodata

Biodata is a global provider of cryptographic devices as well as network and communications technology products. The company's portfolio includes Internet firewalls ("BIGfire+", "SPHINX") and data encryption products ("Babylon") for public telecommunications networks. With Babylon, Biodata is the world market leader in ISDN encryption. Biodata offers worldwide support and distribution with offices in the UK, Germany, Switzerland, Netherlands, Tunisia, UAE, United States, Australia, Singapore, Taiwan, Malaysia, Hong Kong, China and Japan. The worldwide production and logistics center is located in Switzerland. www.biodata.com