CopyTele Licenses State-of-the-Art Transparent E-mail Encryption System to Digital Info Security Co.

MELVILLE, N.Y. -- CopyTele, Inc. (OTCBB:COPY) and Digital Info Security Co., Inc. (DISC) announced today that DISC has licensed from CopyTele an encryption system integrating CopyTele's encryption technology into DISC's secure e-mail services. The system, CopyTele's Model DCS-2200, is intended to allow companies to encrypt all e-mail transactions, transparent to the individual user. The system was jointly developed by CopyTele and DISC. The product leverages CopyTele's state-of-the-art technology to differentiate DISC from other e-mail compliance companies.

DISC Chairman and CEO James R. Clark stated "We are pleased with the synergy between CopyTele's exemplary encryption system and DISC's competitive hosting services for e-mail compliance. Our goal is to provide a product that will ensure the safety of corporate and private e-mail and other communications."

In furtherance of the relationship between the two companies, CopyTele and DISC exchanged shares of their common stock. As a result of the exchange, CopyTele will hold approximately 9% of the outstanding common stock of DISC.

CopyTele's line of encryption products provides information security for domestic and international users over virtually every communication medium. This broad line of high-grade information security products accommodates cellular, satellite, digital and ordinary telephone lines for voice, fax and data encryption.

Digital Info Security Co. is a privately held corporation that provides world class secure e-mail, e-mail archiving, e-mail surveillance, spam and virus filtering, electronic legal discovery services, website hosting, Blackberry and other business solutions. Whether a company is just starting out or has thousands of employees, DISC can handle the company's needs with professionalism and first class customer service.

CopyTele's principal operations include the development, production and marketing of thin, high brightness, flat panel video displays and the development, production and marketing of multi-functional encryption products, hardware and software based, that provide information security for domestic and international users over virtually every communication media. These products are being marketed directly to end-users and through 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; 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.