CyberGuard Corp. reinforces commitment to providing security solutions worldwide by partnering with Australian-based QPSX Communications, a subsidiary of Telstra Corp.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--July 8, 1996 CyberGuard Corp. (NASDAQ:CYBG), a leading provider of computer security solutions, Monday announced it has entered into a strategic distribution partnership with QPSX Communications Pty Ltd., a wholly owned subsidiary of Australia-based Telstra Corp.

Under the agreement, QPSX, a leading high technology firm providing a wide range of communications products and services, will function as a CyberGuard Value Added Reseller. The CyberGuard Firewall will be added to QPSX's total secure networking solutions offerings, and will be marketed and sold in Australia, New Zealand, and throughout Southeast Asia.

The CyberGuard Firewall is a multi-level secure computer that resides between a company's internal networks, or intranets, and other external networks, such as the Internet, to prevent intrusion from outsiders looking to penetrate a company's sensitive and proprietary data.

As more and more companies utilize the Internet and corporate intranets, the risk of penetration from unauthorized users continues to increase, and the need for a proven, complete security solution grows. Datapro Information Services Group, a technology research company, recently completed its 1996 international Information Security issues survey. Based on that study's results, Becky Duncan, senior information security analyst, noted: "The Australian market is poised to receive security solutions from vendors. They're looking for answers to their problems and are finding their options limited."

Bob Carberry, CyberGuard Corp.'s chairman, president and chief executive officer, noted, "Telstra is the leading provider of telecommunications services in Australia, and we are excited about our partnership with their QPSX subsidiary because it highlights our commitment towards expanding our distribution channels to meet the rapidly growing demand for network security solutions on a global basis. Introducing our CyberGuard Firewall to QPSX's leading-edge networking and security offering provides customers with a strong enterprise-wide security solution and further strengthens our worldwide distribution channels."

Since its inception, QPSX has developed the original cell switching concept on which the company was founded, into a range of sophisticated, leading edge Broadband Service Network (BSN) products. Today, QPSX is also leading in the development and introduction of a range of communication security products. These new products, encompassing both hardware and software, address the requirements of electronic messaging to the desktop, Internet and electronic commerce security, Certification Authority and Multifunction Secure Communications devices. QPSX has a substantial systems integration team that provides consultancy and assists customers deploy network security in their business applications.

"Our customers are knowledgeable and concerned about network security," said Kevan Penter, Manager of QPSX Secure Products Group. "We selected the CyberGuard Firewall product because it is a proven and complete solution, with an excellent management interface. CyberGuard utilizes proven certified technology. Its operating system and networking product have been evaluated by the National Computer Security Center at the B-1 level of trust. Other firewall vendors may claim to offer this kind of protection, but CyberGuard was the only one we found that had the certificate to back it up. Companies that are serious about electronic commerce over the Internet should consider the CyberGuard Firewall."

QPSX, headquartered in Perth, Australia, was formed in 1987 and became a wholly owned subsidiary of Telstra Corporation in 1995. With offices in Sydney, Perth and Melbourne, the company has a wide range of communications networking products and security enterprise products. QPSX provides comprehensive high performance solutions for private and public networks. The company has a leading high technology research and product development team and is considered Australia's foremost fast packet and cell switching network systems integrator.

CyberGuard Corporation, headquartered in Fort Lauderdale, develops commercial network security products designed to protect data on computer networks worldwide from access by unauthorized users. The company targets organizations in industries such as finance, healthcare, communication, education, manufacturing and government that require a proven security solution. The company's CyberGuard Firewall has an operating system and networking product that have been tested and certified by the National Computer Security Center (NCSC) at the B1 level of trust and by the National Computer Security Association (NCSA). CyberGuard Corp. is a publicly held company and can be found on the Nasdaq National Market System under the symbol 'CYBG'. Product and security information can be accessed via the company's World Wide Web site at http://www.hcsc.com -0-

Note to Editors: For additional company or product information from CyberGuard Corporation via fax, please call 800/344-4297; via Internet, access their home page at http://www.hcsc.com. CyberGuard and CyberGuard Firewall are trademarks of CyberGuard Corp. All other trademarks are property of their respective owners.

In the World Wide Web address noted in this news release, there is a double slash between http: and www.hcsc.com. This symbol may not appear properly in some systems.

In the Internet/email addresses noted in this news release, there is an "at" symbol between kpenter and qpsx.oz.au and in between bosborne and qpsx.oz.au. This symbol may not appear properly in some systems.

CONTACT: CyberGuard Corp., Fort Lauderdale

Lisa Thornhill, Media/Investor Relations

954/977-5615

or

FitzGerald Communications

Fred Bateman

617/494-9500

or

QPSX Communications Ltd.

Kevan Penter, Business Development

09/262-2000 or [e-mail]

or

Secure Communications

Bill Osborne

04/933-0722 or [e-mail]