CopyTele Encryption Enhances Boeing Satellite Telecommunications Services.

Business Editors

MELVILLE, N.Y.--(BUSINESS WIRE)--April 15, 2004

CopyTele, Inc., (OTCBB:COPY), announced today that it has entered into an agreement with Boeing Satellite Systems International, Inc., allowing Boeing to provide CopyTele's encryption products for use over the Boeing-built Thuraya satellite communications network.

Boeing will use CopyTele's USS-900 for fax and/or voice encryption, and the DCS-1200 and DCS-1400 for voice encryption. Boeing will sell these units for use with its Thuraya handsets throughout the Thuraya satellite network. CopyTele's encryption technology will be integrated directly into this phone system. CopyTele's products will enable the Thuraya satellite network to provide encrypted communications between satellite phones, from satellite phones to desk-based phones or between desk-based phones. CopyTele's encryption products can provide high-grade hardware security over the Thuraya, Iridium, Globalstar, Inmarsat M4 and Mini M satellite networks utilizing Harris Corporation's Citadel(TM) CCX encryption chip. Boeing will shortly announce more information about our joint program.

The use of encryption is expected to benefit Thuraya satellite telecommunications customers that Boeing is currently serving in Iraq under a recently awarded contract. Boeing is providing mobile satellite services to the Coalition Provision Authority, to officials in Baghdad's 18 governing ministries, to U.S. military forces and to other U.S. personnel in Iraq.

Denis A. Krusos, Chairman and CEO of CopyTele, stated that "Encrypting information over satellite networks is in the early stages. We expect this field to be an expanding opportunity for our encryption products due to the rising demand for information security over many regions of the world, especially in the Middle East. We believe that our encryption business will continue to grow as the focus and awareness of security in government and commercial areas increases."

CopyTele's principal operations include the development, production and marketing of multi-functional encryption products, and the development, production and marketing of high-brightness thin flat CRT video displays. The encryption product line provides information security for domestic and international users over virtually every communications media, including marketing a broad line of hardware and software based high-grade information security products to accommodate cellular, satellite, digital and ordinary telephone lines for voice, fax and data encryption. These products are being marketed through a worldwide network of dealers and distributors. For additional information, visit CopyTele's website at www.copytele.com.

Forward-Looking Statements 

Statements that are not historical fact may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but rather reflect CopyTele's current expectations concerning future events and results. CopyTele generally uses the words "believes", "expects", "intends", "plans", "anticipates", "likely", "will" and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning CopyTele's expectations, involve known and unknown risks, uncertainties and other factors, some of which are beyond CopyTele's control, which may cause CopyTele's actual results, performance or achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. In evaluating such statements as well as the future prospects of CopyTele, specific consideration should be given to various factors, including the following: CopyTele's prior history of losses and negative cash flows from operations; CopyTele's ability to obtain debt or equity financing to continue our marketing, research and development activities, on terms acceptable to CopyTele, if cash generated from operations is insufficient to satisfy our liquidity requirements; CopyTele's ability to develop a full-color video display; the possible development of competitive products that could render CopyTele's products obsolete or unmarketable; and other risks as detailed from time-to-time in CopyTele's filings with the Securities and Exchange Commission. CopyTele undertakes no obligation to update any forward-looking statements as a result of new information, unanticipated events, or otherwise.