Cylink Corp. Wins U.S. Government Approval for Key Recovery Plan; Leading Provider of Network Security will Export 56-Bit Encryption Technology.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 3, 1997--Cylink Corporation (Nasdaq:CYLK), the world's leading provider of network security and management solutions since 1984, today announced that the U.S. Department of Commerce awarded Cylink approval to export 56-bit encryption technology.

Cylink is one of the first companies to satisfy new U.S. export requirements and win approval of its key recovery plan since the government implemented its new export policy on encryption. The policy reduces export restrictions on strong encryption products that offer key recovery options.

"Within days of the Clinton Administration's December announcement, Cylink's team of scientists and engineers developed what the government termed as the most comprehensive plan," said Fernand Sarrat, president and CEO of Cylink. "This immediate execution and resulting approval is indicative of Cylink's ability to quickly assess market potential and implement a solution."

Cylink's key recovery proposal responds to government and law enforcement concerns about access to encrypted data. The plan also offers an effective alternative to businesses that want the ability to recover data encryption keys.

Cylink's key recovery mechanism, CyKey(TM), is simple, unique and straightforward. CyKey(TM) gives customers the ability to recover lost keys and unlock encrypted data. The mechanism is optional and may be turned on or off depending on business requirements or government regulations. If key recovery is activated, the system will allow the customer to act as its own key recovery agent or assign that responsibility to a third party.

"Many Cylink customers consider the ability to recover data encryption keys critical to successful business management," Sarrat said. "This feature adds tremendous value to our existing line of enterprise security products and will further Cylink's ability to service our multi-national customers."

Cylink will offer key recovery across its product line. Its products incorporate strong encryption such as DES, triple DES, SAFER, RSA and proprietary algorithms. "We are very pleased that companies like Cylink have chosen to take advantage of the Administration's new policy on encryption exports," said Sue E. Eckert, assistant secretary for Export Administration/U.S. Dept. of Commerce.

"Our policy balances the needs of law enforcement and industry so that U.S. companies can compete effectively overseas. The decision to allow Cylink to export 56-bit DES products under a license exemption marks the start of a new flexibility in U.S. encryption export policy."

Cylink Corporation is the recognized world leader in information security solutions, providing the most comprehensive portfolio of public-key cryptographic hardware and software products available today. Cylink's products enable secure data transmissions over local area networks (LANs), wide area networks (WANs), public packet switched networks such as the Internet, asynchronous transfer mode (ATM) and frame relay networks.

Cylink, headquartered in Sunnyvale, is also the leader in outdoor spread spectrum microwave radio communications. Cylink's customers include national and multinational corporations, financial institutions, and government organizations. For more information about Cylink and its products, call the fax-on-demand number 800-735-6614, or visit the company's Web site at http://www.cylink.com .

For more information or questions regarding the encryption export issue, please contact Cylink at 408/523-5993, or send an e-mail to [e-mail].

CONTACT: Edelman Public Relations 

Ina McGuinness, 415/433-5381 x. 213

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Cylink Corp.

Paula Contos Dunne, 408/523-5993

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