Biz Interactive Zone Selects Litronic to Provide Real-Time Secure Internet Products.

Business Editors and High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--Sept. 14, 2000

Litronic Delivering High-Speed Encryption Authentication Technology to

Satisfy BIZ's Core to the Edge Model

Litronic Inc. (Nasdaq:LTNX), a leading provider of public key infrastructure (PKI)-based Internet security solutions, Thursday announced it has been selected by Biz Interactive Zone (BIZ), a technology company working to develop and market a system with the ability to process real-time, secure business transactions over the Internet.

Litronic joins other BIZ "best-of-breed" partners and suppliers in designing a system that will provide unprecedented levels of security, capability, extensibility and speed.

BIZ has developed a new model for trusted transactions in the real-time exchange of authenticated financial and intellectual information.

Marketed under the brand name SSP, for "Secure Solution Provider," the complete suite of firmware, software products and applications will support all e-commerce requirements, and will incorporate Litronic's crypto technology at the core and other secure access technologies and tokens at the edge.

These technologies offer high speed PKI encryption authentication required for secure transactions in the online business-to-business and business-to-consumer environments. SSP is also the foundation providing support for automatic rules handling, digital rights management, micro-payment processing, transaction clearing, authentication and content preparation.

"The goal of BIZ Interactive Zone has been to develop a universal industry standard for embedded, high-speed Internet security," said Rob Gorman, president and COO of BIZ. "By developing this model with leading-edge technology companies like Litronic, we have answered the need for an end-to-end solution that protects every link in the transaction chain.

"By incorporating Litronic's technology, the BIZ's SSP model will be able to increase current levels of PKI security transactions at least tenfold."

Litronic will provide a proprietary broadband technology for very high-speed, high-density PKI encryption authentication and transaction processing, integrating high performance cryptographic chips provided by Broadcom Corp. (Nasdaq:BRCM).

The system is being designed to achieve FIPS 140-1 level three certification, the same security used by the Federal Reserve and other financial institutions performing high value e-transactions. Shipment in quantities is planned to commence during the first quarter of 2001.

"Our alliance with BIZ enables us to excel at our expertise -- making the Internet a safer place for business," said Kris Shah, president and CEO of Litronic. "With the significant growth of the Web, it's crucial that companies keep the entire transaction chain safe and secure. This can now be offered with confidence through our technology and a standard worldwide system of trust on the Internet."

Gorman said Litronic and Biz are also planning to develop other SSP products, including access systems for user devices.

About BIZ Interactive Zone

BIZ is pioneering the only core-to-edge security solution that enables merchants, consumers and vertical virtual communities to confidently transact commerce and exchange confidential information online, by delivering a new worldwide broadband industry standard for real-time, secure, private transactions.

BIZ has assembled a "best of breed" team of providers, combining the leading broadband technologies of Broadcom and Litronic with the leading Trust @ the Edge technologies of Wave Systems (Nasdaq:WAVX), to embed security and trust throughout the transaction chain, from the core to the edge of the Internet.

These technologies, when combined with those of industry leaders such as Verisign and other BIZ partners, will complete the Secure Solution Provider (SSP) suite of products and services.

About Litronic

Litronic provides professional Internet data security services and develops and markets software and microprocessor-based products needed to secure electronic commerce business transactions and communications over the Internet and other communications networks based on Internet protocols.

Litronic's data security products use an advanced form of computer security technology referred to as public key infrastructure (PKI). Litronic's Internet security products can be used with World Wide Web browsers, including Netscape Communicator and Microsoft Internet Explorer. Additional information on Litronic is available on the company's Web site at http://www.litronic.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, the matters discussed in this news release relating to the projected growth of e-commerce and of the Internet security market; and to Litronic's ability to penetrate the Internet security market, to integrate acquisitions and to transition to commercial markets are forward-looking statements that involve a number of risks and uncertainties, including competition from companies with greater financial and technical resources than Litronic, the difficulty in continuing technical innovation (particularly in light of the competitive market for technical personnel), the effect of differing corporate cultures on the integration of acquisitions and the acceptance of Litronic's products in the commercial marketplace. Other risks inherent in Litronic's business are described in Securities and Exchange Commission filings, including the company prospectus. Litronic undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.