Certicom Corp. Reports Third Quarter Results.

TORONTO--(BUSINESS WIRE)--March 17, 1998--

Results Show Growth in OEM Business Segment Over Previous Quarter

Certicom Corp., a leading provider of cryptographic technologies, today announced its results for the third quarter ended January 31, 1998.

For the three months ended January 31, 1998, revenue was approximately CDN$0.26 million, versus approximately CDN$0.38 million for the same period in 1997. As expected, third quarter revenue was lower than the comparable period last year primarily due to the continued hiatus in secure fax product shipments, which resumed at the end of January. In spite of the decline in overall revenue, revenue from OEM customers comprised most of the total, representing growth in that segment over the previous quarter. These results were consistent with management's expectations. Continued growth in the company's OEM revenue stream is anticipated in the months ahead as customers begin shipping their products secured with Certicom's technology.

"While the growth of our OEM business has been steady over the past year, it has really accelerated during the third quarter," said Philip C. Deck, president and CEO, Certicom. "In the months ahead, we anticipate more customer product shipments and the addition of several strategic partners to our customer base."

For the three months ended January 31, 1998, loss increased to approximately $3.4 million from a loss of approximately $1.8 million for the same period in 1997. This increase is due to significant investment in selling and marketing, and ongoing research and development. During the third quarter, Certicom increased its San Mateo-based Sales and Marketing team to 22 people, bringing the company's total headcount to 85 people. Loss per share decreased slightly from the previous quarter to $0.38 from $0.40 for the three-month period ended January 31, 1998, and compared to $0.22 for the three-month period ended January 31, 1997. As of January 31, 1998, the company had 9,613,551 shares outstanding.

The company's working capital as of January 31, 1998, was approximately CDN$48.8 million, including cash of approximately CDN$48.0 million. -0-

This press release may contain forward-looking statements relating to the receipt by Certicom of revenue and the timing thereof. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are delays in product development, undetected software errors and bugs, competitive pressures, technical difficulties, market acceptance, changes in customer requirements and general economic conditions. Certicom shares are traded on the Toronto Stock Exchange under the symbol "CIC". Visit Certicom's web site at www.certicom.com.

For further information, please contact: Kim Morningstar, Corporate Communications Manager ([e-mail]) or Bruce MacInnis, VP Finance & Chief Financial Officer ([e-mail]) Certicom Corp., Tel: [phone] or 800/561-6100 (in the U.S.)

CONTACT: A&R Partners Public Relations 

Carolyn Federman, 650/363-0982 x223

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