New SPYRUS Hydra Privacy Card(R) Series II V2.0 Provides Unbreakable Security to Protect Personal Information and Digital Assets.

Secures Encrypted Personal Data on a Travel-Size Token; Data Can Only Be Accessed after Authentication on Authorized Computers; Stores Confidential Data Securely Even on Internet-Accessible Storage Drives for Complete Compliance

SAN JOSE, Calif. -- SPYRUS, Inc., an innovator in portable hardware security products and solutions, today used the RSA Conference 2007 to announce the availability of its next generation Hydra Privacy Card[R] (Hydra PC[TM]) Series II version 2.0 USB personal encryption device with major new security features. The new Hydra PC Series II v2.0 device provides superior security and compliance features for securing sensitive data on removable memory devices that can easily be lost, stolen or misused.

With a number of high profile data breaches in the news during the past year, unsecured data on memory drives poses significant compliance issues for organizations. Statutes and regulations such as the Gramm-Leach-Bliley Act, California SB-1386, the Payment Card Industry Data Security Standard, and the Health Insurance Portability and Accountability Act (HIPAA) call for the protection of personally identifiable information (PII). Adopting the Hydra PC Series II v2.0 would comply with all of these legislative requirements while providing individuals with the flexibility to easily and securely use corporate critical data in remote and mobile situations.

The proliferation of mobile devices such as laptops, thumb drives, external portable drives, and smart phones with huge amounts of memory storage significantly increases the likelihood of data theft, loss or misuse of sensitive personal and enterprise data, and identity theft. Encryption provides some level of protection, but security policies that dictate how personnel can access, store, or travel with sensitive data are often violated, either accidentally or intentionally.

"Many of the data breach incidents reported over the past two years are from insiders who are trusted, authorized users," said Tom Dickens, Chief Operating Officer, SPYRUS. "Hydra PC implements our innovative split knowledge mechanism that does not explicitly trust either a user or computer. We split the knowledge, or secret, between people, machines and our product so that data walking out the door can't be copied to an unauthorized machine at home."

The new features of the Hydra PC Series II v2.0 personal encryption device announced today solve issues of data protection on mobile devices and the intentional or inadvertent policy violation by employees for storing, accessing, transporting and protecting data. These features include the following:

* Encrypted files can be stored on miniSD storage cards, on the computer's hard drive, on a shared network drive, on an external storage drive, or even on an Internet-accessible storage drive such as Yahoo Briefcase. This feature helps protect data-at-rest (DAR) and data-in-transport (DIT).

* All data is encrypted and sealed on a file-by-file basis in the Hydra PC hardware, ensuring that rogue software or malicious viruses cannot compromise any files or data.

* The Hydra PC implements a Host Authorization Code mechanism, a unique SPYRUS technological breakthrough, so the Hydra PC will only function when used with computer platforms authorized by administrative policy. This prevents a user from removing sensitive data at the office and using an unauthorized computer at home or elsewhere to either maliciously or inadvertently cause a data security breach.

* A unique Hydra PC Sentry feature locks out the use of unauthorized USB storage devices, Firewire disk drives, or any other mass storage class devices from the protected computer platform. This feature ensures compliance because users can't violate policy by taking unencrypted data out of the office on unprotected storage devices.

* The encryption keys are destroyed and access to encrypted files is blocked after 10 incorrect PIN entries, rendering it completely useless to a hacker if the Hydra PC is lost or stolen.

Hydra PC also supports personal security token functions for smart card log on, secure email and secure network log on for Microsoft Windows 2000, Windows XP, Windows Server 2003, and Windows Vista. It is also the first personal encryption device to support removable storage on commercial miniSD cards used in cell phones and digital cameras, including the latest High Capacity miniSD 4GB cards.

"The Hydra PC uniquely complements WISeKey's mission to create a global Trusted Ecosystem on the Internet," said Kevin Blackman, Chief Technology Officer, WISeKey. "Hydra PC secures the digital identity, protects an individual's privacy, and uses the strongest data security protection for data stored on Internet-accessible storage drives."

"The Hydra PC is cleverly designed to be compact and portable and can work with any locally-purchased commercial removable miniSD storage cards," said Shuki Dvir, Managing Director, Sim-Tech. "Hydra PC meets our customer requirements for strong cryptography to protect the data they want to carry in their pockets, eliminating the need to carry a laptop with them."

Hydra PC Series II will allow you to rest with peace of mind, knowing that data encrypted by the Hydra PC, even if lost or stolen, will be absolutely protected against compromise for decades to come.

"We are impressed that Hydra PC is an encryption device that uses the strongest algorithms to protect any data type on miniSD storage cards, PC's, and other external drives, and that it also operates as a PKI authentication token," said Han Mutlu, President, Global Forte. "Hydra PC provides both the future-proof security and multi-application authentication and encryption services our customers need as they transition from Windows XP to Vista."

About SPYRUS, Inc.

SPYRUS has provided innovative portable security products and solutions for the information security market since its inception in 1992. Our primary product lines of Hardware Security Modules, Rosetta Client Authentication (smart cards, USB tokens and readers), Hydra PC Series II and Identity Management products (Signal Identity Manager and SPYRUS PKI) meet customer needs for high-assurance security. Our mission is to set the standard for the new era of multinational information sharing and long term data protection. SPYRUS, Inc. is headquartered in San Jose, CA. Further information is available at www.spyrus.com.

SPYRUS, Hydra Privacy Card, and Hydra PC are either registered trademarks or trademarks of SPYRUS, Inc. in either the United States and/or other countries. Other products mentioned herein may be trademarks and/or registered trademarks of their respective owners.