CyberKey's R3technology Allows Users to Revise and Renew the Functionality of Their CyberKeys Via the Internet.

Business Editors/High-Tech Writers

ST. GEORGE, Utah--(BUSINESS WIRE)--April 15, 2003

CyberKey (Pink Sheets:CYKY):

-- CyberKey's R3technology(TM), Dynamic Block Management,

FlashDRM(TM), and vertical market focus are each critical

parts of the company's market differentiation strategy among

USB manufacturers known as the KeyStone Initiative(TM)

CyberKey(TM) (Pink Sheets:CYKY) today unveiled its R3technology(TM) which allows users to remotely revise and renew the functionality of USB drives known as CyberKeys via the Internet.

CyberKeys are Universal Serial Bus (USB) storage devices commonly categorized as USB drives that can be connected to personal computers or other electronics devices with a USB port. Such CyberKeys are roughly the size of an adult's "pinky" finger and range in storage capacities from 16MB to 1GB of solid-state flash memory.

"CyberKey's new patent-pending R3technology makes it possible for the first time for individuals to have the latest and greatest functionality on a USB drive," said Jim Plant, president and chief executive officer of CyberKey. "As a result, the risk of having outmoded or outdated capabilities on a CyberKey USB drive just vanished."

R3technology takes its name from the term "remote revision & renewal." All CyberKeys are shipped with R3technology pre-installed on the devices.

Utilizing CyberKey's R3technology requires a one-time declaration of the user's preference for automated or manual functionality updates, which is done while a CyberKey is attached to a personal computer or other electronic device connected to the Internet. Thereafter, anytime that specific CyberKey is connected to the Internet, functional updates will either occur automatically or can occur manually, depending upon user preference.

CyberKey's KeyStone Manifesto(TM)

According to CyberKey's Jim Plant, success in the USB drive marketplace will only come for those companies able to avoid commodity status.

"The biggest challenge faced by any company entering the data storage or memory device industries is how to avoid becoming a manufacturer of a commodity product," Plant said. "History has shown us that data storage and memory prices tend to move towards zero very quickly, meaning that only the very largest companies can make any money building such products, and even then, the margins are often razor thin.

"Our research suggests that the dozens of USB drive manufacturers on the market today are all providing essentially the same products -- a Flash memory device that plugs into a USB port to offer portable data storage capabilities. All companies except one: CyberKey.

"We refuse to play in a commodity marketplace because to do so is insane. Rather, we have created three unique USB drive technologies which we believe that when folded into our vertical market focus create unbeatable value-added and profitable opportunities for our partners. We call this the KeyStone Initiative."

Based upon its KeyStone Manifesto(TM) (see http://www.cyberkeycorp.com/about/technology.htm), CyberKey's KeyStone Initiative is presently supported by four major points:

-- R3technology, which allows remote revisions and updates of

CyberKey functionality;

-- Dynamic Block Management, which allows CyberKeys to

automatically detect and "map around" bad or marginal flash

memory data storage blocks;

-- FlashDRM(TM), CyberKey's Digital Rights Management technology

which provides the ability to encrypt digital content on a USB

device so the applications or media cannot be illegally copied

or stolen off that device; and

-- CyberKey's focus on vertical markets, initially the

automotive, education, entertainment, finance, and medical

industries.

"No other company has assembled the types of technologies that we have that deliver the unique capabilities to the marketplace that CyberKey has," Plant said. "We encrypt digital content so it cannot be stolen off a USB drive; no other company does this. We automatically prevent data from being stored in bad Flash memory blocks on a USB drive; no other company does this. We allow remote updates and revisions of USB drive functionality; no other company does this. We are also focused on delivering complete solutions to vertical market partners and end-users; no other company has done this either. These four reasons alone give me great hope for the success of CyberKey and its partners."

The terms KeyStone Initiative and KeyStone Manifesto take their name from the word "keystone" which is defined as the topmost stone in an arch that holds other stones in an arch in place.

About CyberKey

Based in St. George, Utah, CyberKey Corporation partners with industry leaders to market USB drive solutions to vertical markets, such as the automotive, education, entertainment, finance, and medical arenas. CyberKey technologies allow users to easily and securely transport and utilize large amounts of electronic data and the attendant software applications from one electronic device to another by utilizing Universal Serial Bus (USB) drives, addressing serious issues of data portability and accessibility in the process while creating new market opportunities at the same time. For more information, visit CyberKey's Web site at www.cyberkeycorp.com.

CyberKey, R3technology, FlashDRM, KeyStone Initiative and KeyStone Manifesto are trademarks of CyberKey Corporation.

Forward-Looking Statements 

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "intend," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the maturing of historical business, the companies' abilities to generate significant revenues from new business initiatives, Internet security risks, and other risks detailed in the companies' periodic report filings with the U.S. Securities and Exchange Commission. By making these forward-looking statements, the companies' undertake no obligation to update these statements for revisions or changes after the date of this release.