Net Nanny Showcases New BioPassword Keystroke Dynamics Security Solution for Windows NT Server at Fall Comdex.

LAS VEGAS--(BUSINESS WIRE)--Nov. 16, 1998--

First Implementation of the Highly Anticipated Keystroke Dynamics 

Technology Will Replace Standard NT Logon, Resulting in Greater

Security for Windows NT Server

Net Nanny Software International Inc. (NNS.V, NNSWF), announced BioPassword(R) LogOn for Windows NT at Fall Comdex 1998.

The announcement marks the company's first implementation of BioPassword(R), their biometrics access control technology. Net Nanny will be demonstrating this latest application of the technology at the Microsoft Partner Pavilion, booth B17.

BioPassword(R) a totally software-based technology, uses a patented process to measure each individual's personal keystroke rhythm. While entering a password, a user's typing rhythm is measured to create an electronic "profile." This "profile," based on several samples of the typing rhythm, is stored by the system and authenticates users whenever they enter their password.

"As a first product, BioPassword(R) LogOn for Windows NT is our response to the industry's increasing need to improve password security in ways never before possible," said Gordon Ross, President and CEO of Net Nanny Software International Inc. "BioPassword(R) is cost-effective, reliable and designed to integrate easily with other security technologies. Because passwords are still the most widely deployed form of user-authentication today, integrating BioPassword(R) into the existing password logon for NT makes a great deal of sense."

Unlike other biometric security products, BioPassword(R) requires no additional hardware -- only a password and keyboard -- and is therefore less costly and less obtrusive than other biometric security products such as retinal scans, voice- and face-recognition technologies and fingerprint scanning. Initially, the BioPassword(R) technology will be offered as an excellent logon alternative for Windows NT administrators who are looking for an extra measure of security. The next phase of development will focus on a Software Development Kit that will allow third-party developers to weave it into other security solutions such as encryption, authentication and VPN technologies. In the future, the company plans to adapt BioPassword(R) into stand-alone login and document security products that can be purchased by consumers.

"The cost each year in security breaches alone runs in the millions," said Ross. "No existing security system is fool-proof. BioPassword(R) LogOn for NT makes sense for those who believe that layering their security technologies offers greater insurance against potential security breaches. BioPassword(R)," Ross continued, "addresses the increasing need to offer reliable, yet cost-effective security solutions. Though BioPassword(R) will be completely transparent to the end-user, IT professionals will immediately experience the benefits of this technology."

Because BioPassword(R) is based on the way that people press keys, uses for the technology include any application that requires a keyboard or keypad for access such as computers, automated teller machines, automobiles and telephones. Licensing the technology for integration directly into the BIOS to deter machine thefts and unauthorized boot-ups, or hard coding it onto a chip offers many exciting opportunities for hardware manufacturers who are looking for a security solution that will give them an extra edge over their competitors. BioPassword(R) is poised to become a key component in the security solutions adopted by consumers and businesses that depend on easy, cost-effective methods for protecting their data, both personal and professional.

System Requirements and Availability

Net Nanny(R) plans on making BioPassword(R) LogOn for Windows NT -- Net Nanny plans on making BioPassword LogOn for Windows NT available for download from its Web site in the first quarter of 1999. The program will be quick and easy to install, automatically deploying a file to each client. The company will also consider offers to distribute the product through the OEM channel.

Future development plans, based on available resources, include adapting the technology for the Unix, O/S2, Java and other operating system platforms. Net Nanny(R) will also incorporate BioPassword(R) into their existing product line, further enhancing the company's reputation as a leader in innovative product design and a market leader in the emerging Internet filtering market.

At Fall Internet World, early versions of BioPassword(R) were made available for download by the media, analysts, home and corporate computer users to experience the technology and offer their feedback. A demo of BioPassword(R) remains available for download from the BioPassword(R) Web site at www.biopassword.com.

About Biopassword(R) and Net Nanny Software International Inc.

Totally software-based, BioPassword(R) uses a patented process, owned exclusively by Net Nanny Software International Inc., which utilizes keystroke dynamic technology developed by top engineers at Stanford Research Institute. It uses biometric (body characteristic) measurements and a proprietary algorithm to record an individual's unique typing rhythm. The technology can be used with any keypad, from computer keyboards to ATM machines to telephones.

The Securities and Exchange Commission in the United States has accepted Net Nanny Software International Inc.'s 20F Registration Statement. The company's securities are now eligible to be reinstated for trading on the Over the Counter Bulletin Board, regulated by the NASD, with the symbol NNSWF.

The company is on the advisory committee of the U.S. Congressional Internet Caucus and a member of the Association for Interactive Media, a trade association that lobbies Congress on behalf of the Internet industry.

For additional information, visit BioPassword(R)'s web site: www.biopassword.com, or visit Net Nanny's web site: www.netnanny.com, or call the company directly at 425/688-3008 for PR information or 604/662-8522 for sales and technical information.