Cardxx Appoints New Management Team, Achieves NIST FIPS 140-1 Authorization, and Signs Letter of Understanding to Manufacture Smart Cards.

Business Editors & Technology Writers

DENVER--(BUSINESS WIRE)--Sept. 6, 2002

Cardxx, Inc. (the "Company")(Pink Sheets:CXCQ) today announced that it has appointed a new Chief Executive Officer, a new President, and a new Technology Director to lead the company. In addition, the Company has signed a Letter of Understanding to produce Smart Cards for Spyrus, Inc.

"I am truly excited about the quality management team assembled and our strong long-term prospects in the Smart Card Fabrication market," stated Paul Lewis, the company's new President. "Our patented process has been given the stamp of approval by the National Institute of Standards and Technology, under the FIPS 140-1 Data Encryption Standard. Level 3 Intelligent Smart Cards are produced and licensed no where other than at Cardxx. No other company has achieved this level of authorization."

Mr. David Ziegler has been appointed Chief Executive Officer of the Company. Mr. Ziegler's background and experience includes over 25 years of international expertise in finance, marketing and communications. As the CEO and Founder of The Solutions Group International, Ltd., for more than two decades, he has arranged significant financing commitments for his technology clients. His depth of industry experience with both public and private companies includes: finance and credit cards, advanced technologies, the Internet, and consumer marketplaces. Mr. Ziegler received the National Republican Congressional Committee's (NRCC) National Leadership Award and is Colorado's Honorary Co-Chairman of NRCC's Business Advisory Counsel. Mr. Ziegler received his Bachelor of Arts Degree in 1978 from St. Lawrence University.

Mr. Paul Lewis has been appointed President of the Company. Mr. Lewis has over 16 years of executive management experience in communications and security. Mr. Lewis is the founder and former CEO of MC2 Corporation, a world leader in information systems, which was wholly acquired by Volt Information Sciences (NYSE:VOL) in 1999. He has been featured on CNBC-TV and a number of other broadcasts as an expert strategist in security technology. Mr. Lewis advised The President at The White House on business issues related to technology and security. He was also the former President and CEO of Mobilentity Technologies, a company formed around patented intellectual property in Voice Over IP (VOIP), RF Signaling, and broadband data delivery. He is a former member of Cisco Systems' Steering Committee and Novell's Advisory Board. Mr. Lewis received his Bachelor of Science Degree in Computer Science from Fairleigh Dickinson University in 1988.

Mr. Harry J. Tiffany has been appointed Technology Director of the Company. Mr. Tiffany is the founder of the Company and formerly served as its President and Chief Executive Officer. He has over 35 years of mechanical engineering and design, machine design, robotics and manufacturing experience, and was the inventor of Cardxx' numerous patented and patent-pending technologies and processes. Since 1996, Mr. Tiffany has served as the CEO of ICON Industries, Inc., a firm engaged in the engineering and manufacturing business. Previous to ICON, Mr. Tiffany owned and operated Tackle Incorporated, a company engaged in the machine design and fabrication business. Mr. Tiffany received his Bachelors of Science from The Laurence Institute of Technology in 1964.

Cardxx has partnered with Spyrus, Inc. to engineer the world's first and only intelligent Smart Card technology that has been approved by the United States Government's Level 3 Standards (NIST FIPS 140-1) of the National Security Council's standards for Smart Cards. By using Cardxx' patented processes, Spyrus has been selected by the Department of Defense (DOD) as a qualified small business authorized to supply Common Access Cards (CAC) firmware, contract no. N00104-02-D-Q669. This contract is part of the DOD Enterprise Software Initiative.

In a Letter of Mutual Intent dated August 31, 2002, Spyrus states: "SPYRUS has depended heavily on the Cardxx process for Smart Card development in the past, and intends to utilize the Cardxx process in the future to meet its development needs for FIPS 140-1 Level 2 and Level 3 validated Smart Card devices."

Cardxx, Inc. is in the business of manufacturing and licensing secure Smart Cards using our proprietary and patented encapsulation process known as the Reaction Assisted Molded Process ("RAMP"). RAMP is used to securely integrate a microcircuit into a small form factor Smart Card, or Radio Frequency Identification (RFID) Smart Tag. A Smart Card looks and feels like a credit card but acts like a computer. It can be used to verify a user's identity to log on to a computer network; allow a physician to scan a patient's medical records and history; and in theory could replace many of the ever-growing assortment of I.D., travel, credit and access cards that are a seemingly inescapable part of modern life. Using Cardxx' patented process creates the world's first and only intelligent Smart Card technology to have been validated to the NIST (National Institute of Standards and Technology) FIPS (Federal Information Processing Standards) 140-1 Level 3 National Security standard for Smart Identification Card manufacturing.

Statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve a high degree of risk and uncertainty that exist in the company's operations and business environment. Such statements are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include the development of the Company's new and uncertain business model, uncertainty regarding acceptance of the Company's products and services and the Company's limited operating history in this business segment.