Christie Capital Uses Validian's Secure Instant Messenger to Lower Costs in Its Financial and Investment Environment.

Business Editors/High-Tech Writers

OTTAWA--(BUSINESS WIRE)--Oct. 9, 2003

Validian Corporation (OTCBB:VLDI), an international provider of communication security technologies for networked environments, today announced the implementation of its Secure Instant Messenger system (SIM) in Christie Capital Management, an Investment Advisory and Portfolio Management firm.

"In our investment and analyst business, one of the constants is to exchange files between our partners and our customer base. As investors, contracts and attachments can be unusually large and often confidential, they are not suitable for transmitting by other electronic means," said Scott Christie, Christie Capital President. "We have had to send and receive courier packages, at a significant business cost. In the past we communicated with contacts by phone, one contact at a time, or suffered the time lags and uncertainties of corresponding by email. Now we use SIM to interact with several different people on different matters at the same time. Sending documents by SIM in lieu of one to two courier packages pays for one year's cost of SIM. So does using SIM for multi-party exchanges in lieu of long telephone conference charges, with the added benefit of the history features that means we don't have to take notes."

This commercial venture reinforces Validian's presence in the financial services sector, where the issues of size of documents to be exchanged, the number of times these documents change hands, speed of exchange and confidentiality of customer information are critical.

"SIM's cost efficiency has already provided a significant ROI to Christie Capital, as the yearly cost of the service has been recuperated in a number of weeks," said Dr. Andre Maisonneuve, president and chief executive officer of Validian. "The speed of the exchanges of very large files between the partners has been noted as a key benefit to Christie Capital."

Validian's Secure Instant Messenger system (SIM) offers the highest level of security available for real-time communication and file exchange. SIM performs encryption of both messages and attachments within its own operation, so that data never travels in the clear at any point in time. It offers real-time features for collaboration between individuals and groups, including synchronous and asynchronous collaboration, enterprise-wide presence and secure file transfer features. Within a SIM exchange, all participants are authenticated and messages and files of any size and of any type, including video and audio files, can be transferred with full security. SIM is currently the only secure instant messenger to be carried on a USB flash memory device.

SIM operates on Validian's Application Security Infrastructure (ASI) that provides SIM with all its security features. ASI addresses the requirement for secure transport of data, for authentication of participating entities and for establishment of a strong level of trust between these entities. ASI is particularly valuable in securing distributed applications operating over distributed networks. ASI automatically manages all critical security functions between any applications, including authentication, encryption, key generation, key distribution, addressing and data transport. SIM and ASI are software-only solutions, easy to install, manage and use. They allow organizations of all sizes to enjoy the benefits and flexibility of secure communications between applications, without the traditional costs and pain imposed by alternate solutions.

About Validian Corporation

Validian Corporation has developed the Application Security Infrastructure and the Secure Instant Messenger to secure exchanges between mutually authenticated application processes over the Internet. ASI and SIM have been designed specifically to facilitate deployment and use of distributed applications and distributed networks. This easy-to-use infrastructure enables organizations to rapidly develop and deploy secure, collaborative, distributed applications for sharing data over public or private networks. The company has offices in the U.S., Canada and Switzerland.

Investors should carefully consider the preceding information as well as information contained in this news release before making an investment in the shares of the company. Information contained in this news release contains "forward-looking statements," which can be identified by the use of forward-looking terminology such as "believes," expects," "may," "should," or "anticipates" or negative thereof or given that the future results covered by such forward-looking statements will be achieved. The preceding matters constitute cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties that could cause actual results to vary materially from the future statements. Other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements.