CTT Announces the Incorporation of Its Licensed Encryption Technology for Use in Digital Music Security and Media Distribution Security.

Business Editors

FAIRFIELD, Conn.--(BUSINESS WIRE)--Jan. 19, 2000

- NTRU and Blue Spike Partner for Digital Music Security

- Digital Media on Demand, Inc. Adopts NTRU for Media Distribution

Security

Competitive Technologies, Inc. (AMEX: CTT) today announced that its client, NTRU Cryptosystems, Inc. (NTRU) a creator of a secure public key cryptography system, and Blue Spike, Inc., the leading developer of secure digital watermarking applications reported the formation of a partnership that will incorporate NTRU's public key encryption technology with Blue Spike's leading-edge "end-to-end" music security solution.

NTRU also announced a partnership with Digital Media on Demand, Inc. (DMOD) in which DMOD will use NTRU public key encryption technology in its innovative media distribution software.

CTT has provided NTRU with a suite of custom incubation services to launch the company - including patent filings support, interim business management, technical marketing and public relations. In return, CTT has an interest in NTRU revenues. CTT has also been instrumental in forging strategic relationships for NTRU in order to raise funding and secure tools and applications partnerships worldwide, including orchestrating a licensing and investment deal with SONY Corporation of America (NYSE:SNE) on behalf of NTRU.

"We are quite pleased to see NTRU expand its market position. The marketplace is demanding security for digital distribution which is now available from NTRU, Blue Spike and DMOD," said Frank McPike, President of CTT.

NTRU confirms in a release today that its cryptography delivers encryption, decryption, authentication and digital signature features at speeds over 100 times faster than alternative systems, including those from RSA Security (NASDAQ:RSAS) and Certicom (Toronto:CIC), at equivalent security levels.

Blue Spike is offering a complete "end-to-end" music security solution encompassing packaged media and electronic delivery. This is the first implementation of an exciting new area of security - "trusted transactions." The system allows copyright owners to protect their products from piracy while maintaining for consumers all of the flexibility they have come to expect from their current music libraries. The system also allows music producers to develop and securely deliver innovative music packages, including audio enhancements, text, images, and video. The system is scalable for use on a range of products, from portable players to personal computers to high-end stereo equipment.

"NTRU has the most sophisticated encryption technology on the market," said DMOD Chief Operating Officer, Brett Fasullo. "Their ability to let us 'encrypt on the fly,' and encrypt up to one key per second of a digital file, is exactly the level of security our customers are demanding. Providing both high speed and high security solutions, NTRU is a perfect fit for us."

Today's NTRU's release reconfirmed that its speed enables a completely new paradigm in encryption - "disposable keys" - which deliver significantly enhanced security compared to other cryptography systems. In the DMOD application, approximately every second of a music or video clip is encrypted with a different key. This means that on a three-minute clip, the time and cost to break the encryption increases by 180 times, with no performance penalties for users. Unlike other systems which claim to generate multiple encryptions keys to protect media, NTRU disposable keys are completely independent of one another, dramatically enhancing security.

"DMOD encrypts each media clip with keys unique to each user, bringing a new level of protection to our content owners," said Dusty Hester, DMOD's Chief Technology Officer. "This 'on the fly' encryption helps prevent unauthorized sharing of our media clips. Other systems encrypt media in batch, using the same key for every user, or even for every song. This is another reason why DMOD provides the highest level of protection available, and is a direct result of NTRU'S speed."

NTRU is currently participating in the RSA Conference 2000 in San Jose, CA.

About Competitive Technologies, Inc.

Competitive Technologies is a global leader in identifying, developing and commercializing innovative life sciences, physical sciences and digital technologies. Competitive Technologies' specialized expertise and experience make it a valuable partner for companies and universities of all sizes. CTT has been responsible for closing hundreds of licensing agreements. CTT clients include: SONY, Lucent Technologies, Matsushita Electric Industrial and Ribozyme Pharmaceuticals, Inc. Competitive Technologies, In c. is based in Fairfield, Connecticut and has affiliates in Osaka, Japan and London, England.

Statements about the Company's future expectations, including development and regulatory plans, and all other statements in this document other than historical facts are "forward-looking statements" within the meaning of applicable Federal Securities Laws and are not guarantees of future performance. These statements involve risks and uncertainties related to market acceptance of and competition for the Company's licensed technologies and other risks and uncertainties inherent in CTT's business, including those set forth in Item 1 of the Company's Form 10-K for the year ended July 31, 1999 and other factors that may be described in CTT's filings with the SEC, and are subject to change at any time. The Company's actual results could differ materially from these forward-looking statements. The Company undertakes no obligation to update publicly any forward-looking statement.

Direct inquiries to: Mr. John Fitzpatrick Competitive Technologies, Inc. 1960 Bronson Road P.O. Box 340 Fairfield, CT 06430 [phone] [phone] (fax) [e-mail] www.CompetitiveTech.net

Johnnie D. Johnson Strategic IR [phone]