Compaq Granted One of the First-Ever Bulk Licenses to Export 128-Bit Encryption to Financial Institutions.

CUPERTINO, Calif.--(BUSINESS WIRE)--Sept. 23, 1998--

Accelerated deployment--banks gain immediate access to 128-bit

encryption for international electronic commerce

In a move that further fortifies the secure global electronic commerce infrastructure, Compaq Computer Corporation (NYSE:CPQ) today announced that it is one of the first computer companies to obtain a bulk license from the U.S. government to export 128-bit public-key encryption technology for the banking industry. The announcement allows Compaq's banking customers to implement 128-bit secure communications with the iTP(tm) Certificate Security Solution (CSS) across their international operations without waiting the three months normally required to obtain an individual export license.

Until today's announcement, 128-bit public key encryption technologies sold by U.S. companies have been restricted by U.S. law to distribution only in the United States and Canada, except by special license from the U.S. Commerce Department's Bureau of Export Administration. For a bank or other organization, the approval process for an individual license can take several months. In contrast, Compaq is now able to distribute 128-bit encryption solutions to banks for deployment outside of North America with minimal delay--often within a day of when the order is received.

Public-key encryption provides security and enables authentication for messages sent over private and public networks such as the Internet. The greater the number of bits used in the encryption process, the more difficult the message is to crack. When compared with 40-bit encryption--currently the most powerful encryption technology available for immediate U.S. export--128-bit encryption is 3.09 x 10 to the 26th power times more difficult to decipher, thus making it the most secure encryption technology commercially available. Meaning, if the same technology that took eight hours to decipher a 40-bit message was applied to a 128-bit message, it would take more than two trillion years to break.

"While a 40-bit encrypted message has been cracked within 3 1/2 hours, using extensive computing resources, 128-bit encryption is seen as providing iron-clad protection for years to come," said Jerry Peterson, Vice President, Financial Services Industry, Compaq Computer Corporation. "We are pleased to enable our banking customers to be at the forefront of rapidly deploying such a powerful security solution for their communications outside of North America."

The 128-bit technology will be used in conjunction with the iTP(tm) Certificate Security Solution (CSS) from Compaq, a comprehensive family of integrated security products for applications requiring cryptography and the use of digital certificates to authenticate and authorize users, ensure the privacy and integrity of information, and provide data for non-repudiation. Introduced in March, CSS is part of a full range of Compaq products and services designed to provide organizations with the same reliability, scalability and security over the Internet that they have traditionally enjoyed over private networks.

In addition to encryption, CSS also provides administrative services to manage security policies, users, certificates, and keys. Users can be registered and their certificates managed throughout the certificate life cycle.

The iTP CSS solution from Compaq, with support for 128-bit public-key encryption, is available now. Customers requiring further information on iTP CSS can visit the web site of Compaq's Tandem Division at http://www.tandem.com or visit Compaq's website at http://www.compaq.com. Company Background

Founded in 1982, Compaq Computer Corporation is a Fortune Global 100 company. Compaq is the second largest computer company in the world and the largest global supplier of personal computers. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, networking and communication products, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.

Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at http://www.compaq.com.

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. Tandem and iTP are trademarks or registered trademarks of Tandem Computers Incorporated in the United States and/or other countries.