Com-Guard.Com Inc. Announces Manufacturers Affiliate Agreement with Technotrade Informatikai.

Business Editors/High-Tech Writers

CARLSBAD, Calif--(BUSINESS WIRE)--Jan. 29, 2004

Com-Guard Inc. (www.com-guard.com) (OTCBB: CGUD) a provider of enhanced system security for the PC computer industry, today announced that it has signed a Manufacturer Affiliate Agreement with Technotrade Informatikai Rt., the authorized Toshiba distributor for Hungary to provide its Com-Guard security software for Toshiba notebooks for the Hungarian market.

The Agreement includes a revenue sharing provision associated with the resultant sales of the Com-Guard security software in a similar manner as several firewall and anti-virus software providers have done with computer manufacturers. Because access to the software will be provided on a trial basis on the Toshiba notebook, customers will be introduced to the Com-Guard product when they begin using their new computer. Com-Guard will enable the user to lock files so that they cannot be accessed, hide files so they cannot be seen if an intruder gains control of the machine, and encrypt files with 256-bit encryption so that even if the notebook is stolen, the data on the hard drive cannot be read. Additionally, Com-Guard will notify the owner of the computer if an attempt is made to access any Com-Guard protected file regardless of the method the attacker employs. The customer will benefit by knowing they can safely operate their system anywhere and their data will not be at risk when they use public and private networks. This peace-of-mind will enhance the quality and safety of their computing experiences.

By their very nature, notebook computers are more vulnerable to both physical theft because they are easily picked up and carried away and data theft or destruction from hackers who roam the rapidly increasing number of public and private networks on an international scale. Also fueling the need for increased notebook security from Com-Guard is the growing concern over identity and data theft with the advent of Wi-Fi "Hot Spots" using 802.11b. mobile technology and new low power, longer life and faster laptops. These wireless connections have increased the possibility that systems will be compromised. Now signals can be picked out of thin air wherever the Hot Spot exists. Wireless home or office use is equally vulnerable. Experts agree that, whether connected by wire or wireless, hackers can scan for open ports and infiltrate a machine without the users knowledge.

Technotrade has recognized the risks associated with modern day computing. By entering into this Agreement, they have taken a proactive approach to help protect their customers from the threats that linger in the computer community.

From a Com-Guard standpoint, one of the most important aspects of formulating this Agreement is that it represents the first one of its kind with a recognized distributor of a major name brand laptop computer. Technotrade Informatikai supplies Toshiba notebook and desktop computers to the Hungarian market with product support and training services.

According to Joe Sigismonti, president and COO of Com-Guard, "The Technotrade program is an excellent application for our Com-Guard product. Notebook computing is growing, as are the associated risks that new networking technologies introduce. Most knowledgeable customers are seeking increased security in the areas of privacy and access control solutions that go beyond firewall and anti-virus protection. Technotrade's decision, to provide Com-Guard software will help their customers utilize the increasingly available networks with a comforting assurance of privacy in a very easy-to-use fashion, underscores our interest in getting computer owners to think more seriously about today's many online and internal security threats."

Dr. Edward Savarese CEO and chairman of Com-Guard.com said, "The last few years have been marked by a steady barrage of increasingly malicious viruses, worms, and attacks on businesses and home users. Blaster, SoBig, Nimda and the I Love You Virus, are just a sample of the types of security threats that users have had to cope with in the online environment."

"The vast majority of our business users keep sensitive information on their laptop PC's, including personal, corporate and financial data. Almost all will connect to the Internet and they will be vulnerable," said Csaba Stavinovszky, president and general manager of Technotrade.

About Technotrade

Technotrade Informatikai Rt. has its principal place of business at H-1147 Budapest, Ov utca 185. Technotrade is the Toshiba Authorized Hungarian Distributor providing the latest advanced products to the market with an emphasis on high quality sales and service activities.

About Com-Guard.com Inc.:

Com-Guard.com Inc. develops and markets a line of software and hardware products for the computer industry that provide enhanced system security for both individual users and network administrators. The company focus is on detection, protection, and notification of various security threats. The company provides a group of products, based on its state-of-the-art software technology, Com-Guard(TM), that provides PC users with an extensive set of security measures that address Internet security, file locking and encryption security (including e-mail) and internal facility security. The company's patented product, Com-Guard Pro(TM), utilizing the company's Sensor Card(TM), includes the Com-Guard unique software technology that enables users to protect and limit access to sensitive data while providing a physical security system to guard against tampering, theft of the computer, or unexpected intrusions into the environment. The Com-Guard system also provides environmental security by supporting external sensors. Security violations are immediately communicated to predetermined people or locations via a page, phone or email transmission.

This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Expression of future goals and similar expressions reflecting something other than historical fact involve risks and uncertainties. The actual results the company achieves may differ materially from any forward-looking statements due to such risks and uncertainties.

Except for the historical information contained herein, this news release contains forward looking statements that are subject to risks and uncertainties, including the current economic and geopolitical environment, information technology spending trends, lack of Com-Guard's operating history, uncertainty of product acceptance, uncertainty of ability to compete effectively in a new market and the uncertainty of profitability and cash flow of Com-Guard's. These risks and uncertainties may cause actual outcomes and results to differ materially from expectations in this press release. These and other risks are detailed in Com-Guard's quarterly reports on Form 10-QSB's and annual report on Form 10-KSB.

Com-Guard, Com-Guard Pro and Sensor Card are trademarks of Com-Guard.com Inc 2003. All other trademarks referenced herein are the property of their respective owners.