Litronic's NetSign Provides Smart Card Migration Path to Windows 2000 for Windows 95, 98 and NT Users.

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 18, 1999--

Litronic Inc. (Nasdaq:LTNX), a leading provider of Internet security solutions, Wednesday announced that NetSign, the company's ICSA certified enterprise security solution, will provide a smart card migration path to Windows 2000, Microsoft's (Nasdaq:MSFT) next release of the Windows operating system.

With NetSign, current Windows users can now add smart card capabilities similar to those that will be offered in Windows 2000. Through a strategic relationship with Microsoft, Litronic will provide enhancements that will prepare users for a smooth transition to the security features of Windows 2000.

"Users who are anxious to take advantage of the smart card functionality that will be built in to Windows 2000 can get started today with NetSign," said Bill Holmes, Litronic's vice president of sales and marketing. "This is a simple, affordable, no risk path to leading edge smart card capabilities."

NetSign enhances the security features offered by Microsoft Internet Explorer 4.x by integrating smart cards while offering greater convenience and portability to the user. Smart cards represent an emerging trend in enterprise authentication because they enhance the security strength of encryption packages, while offering portability for today's mobile user.

NetSign provides security credentials that are flexible and easy to integrate into new and existing applications. NetSign is based on Litronic's open multi-platform security middleware architecture, which includes Litronic's acclaimed CryptOS smart card API, with support for industry-leading standards including SSL, S/MIME, x.509 certificates, and Public Key Cryptography Standards such as Microsoft's CAPI and PKCS No. 11.

By adding NetSign to your system, mission-critical security functions such as key storage, public key encryption, and digital signatures are removed from your unsecured computer and performed on the smart card itself for significantly greater security that is completely portable for use with your desktop or laptop.

About Litronic

Litronic provides professional Internet data security services and develops and markets software and microprocessor-based products needed to secure electronic commerce business transactions and communications over the Internet and other communications networks based on Internet protocols.

Litronic's primary data security products use an advanced form of computer security technology referred to as public key infrastructure (PKI). Litronic's Internet security products can be used with World Wide Web browsers, including Netscape Communicator and Microsoft Internet Explorer.

Additional information on Litronic is available on the company's Web site at http://www.litronic.com.

Safe Harbor Statement Under the Private Securities Litigation 

Reform Act of 1995

With the exception of historical information, the matters discussed in this news release relating to the projected growth of e-commerce and of the Internet security market; and to Litronic's ability to penetrate the Internet security market, to integrate acquisitions and to transition to commercial markets are forward-looking statements that involve a number of risks and uncertainties, including competition from companies with greater financial and technical resources than Litronic, the difficulty in continuing technical innovation (particularly in light of the competitive market for technical personnel), the effect of differing corporate cultures on the integration of acquisitions and the acceptance of Litronic's products in the commercial marketplace. Other risks inherent in Litronic's business are described in Securities and Exchange Commission filings, including the company prospectus. Litronic undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.