SPYRUS Enters Public Key Infrastructure - PKI - Market Through Acquisition of Signet Systems Pty.Ltd.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 23, 1998--

Combined Software and Hardware Products to Offer High-Assurance

PKI Solutions to Manage Valued Digital Property

SPYRUS(R), a leading provider of high-assurance public key-based security solutions for the enterprise, today announced that it has acquired Signet Systems Pty. Ltd. of Australia, an international provider of Certification Authority (CA) solutions for Public Key Infrastructure.

"The Signet acquisition represents a key strategic move for SPYRUS," said Sue Pontius, president and CEO, SPYRUS. "With the addition of high-assurance PKI products from Signet, SPYRUS can now provide a complete digital chain of trust for enterprise and government customers to manage their valued digital property. The scalable architecture of the PKI permits the adoption of almost any business and policy model to truly enable trusted global electronic commerce. The PKI, in conjunction with the SPYRUS ROSETTA(tm) public key smart card, will allow the enterprise to provide physical and logical access control for the employee and allow the individual to access digital business services through the enterprise."

"The addition of Signet uniquely positions SPYRUS as the only single-source technology provider of both PKI solutions and proven high-assurance cryptographic hardware- and software- based solutions," said Charles Moore, managing director, Signet. "This combination will appeal to enterprises, developers, and large system integrators seeking solutions for the total end-to-end protection of electronic transaction content. Globally, our customers are expressing their strong preference for buying high-assurance security solutions from a single supplier to assure interoperability and to achieve a faster time-to-market. SPYRUS Pty. Ltd. will be the first company in the Asia Pacific region to provide a complete range of PKI solutions. Becoming part of the SPYRUS group enables us to have a global focus, yet provide national and regional solutions to our customers."

This move positions SPYRUS for the rapidly emerging enterprise information security market. SPYRUS also expects the acquisition to expand electronic commerce opportunities horizontally, for payment, messaging and EDI systems, as well as in a variety of vertical markets such as finance/banking, healthcare, postal services and legal.

SPYRUS and Signet have been collaborating closely for more than three years on several projects, including the joint development of a PKI for secure global electronic trading for the United Nations Trade Point Development Center (UNTPDC), implemented with the UNTPDC's partner, KPMG.

"To successfully deploy customer-oriented electronic commerce solutions, it is essential for KPMG to team up with leading technology firms like SPYRUS and therefore take advantage of the complementary core competencies of both organizations," explains Andre J. Biesheuvel, partner of KPMG TTP Services. "With this alliance KPMG commits once again to offering customers the best of both worlds, our implementation methodology on top of the high-assurance technology of SPYRUS."

"KPMG is today providing Certification Authority services using the SPYRUS /Signet high-assurance PKI products," said Kevin Fitzgerald, director of KPMG Information Solutions. "After extensively evaluating the leading PKI solutions available today, KPMG selected the combination of SPYRUS and Signet because their high-assurance PKI solution is proven, scalable, and flexible."

Since its inception in 1995, Signet has developed a reputation for excellence in certification technologies by offering solutions that provide the basis for "trust" for business applications and PKI for electronic commerce. Having developed trusted certification and security solutions for the Australian Defense, in 1995 Signet Systems recognized the emerging role of electronic commerce and that the commercial arena would need its high-assurance approach to secure solutions. It spent the last three years, in partnership with SPYRUS, developing its leading-edge products to meet the needs of this market. Since 1997, Signet Systems products have been selected for use by KPMG to form the basis for their trusted third party services, the UNTPDC, and several governments around the world.

The acquisition moves the two companies beyond collaboration and enables SPYRUS and Signet to meld into one organization that has the complete set of hardware and software cryptography tools needed to become the leading provider in the global electronic commerce market.

"The acquisition of a Certificate Authority firm such as Signet gives SPYRUS the capability to round out its hardware and software products," says Larry Dietz, director of Information Security and Legal Strategies for Current Analysis, Inc. Sterling, VA. "We believe that large end user organizations are looking for complete solutions not just components. The SPYRUS/Signet combination will be in a far better position to attract PKI clients then either would have been able to do alone."

Dietz notes, "We believe SPYRUS has made a wise move in acquiring a firm that can offer professional services and a base outside the U.S. These are the kinds of combinations that are likely to succeed in the global Internet commerce marketplace."

The combined company will retain the SPYRUS name, and SPYRUS will begin operations in Brisbane. Charles Moore, managing director of Signet, will be managing director, Australia for SPYRUS. Financial terms of the acquisition were not disclosed.

ABOUT SPYRUS

SPYRUS is a privately-held high-technology company that applies high-assurance public key-based security solutions for enterprises and governments to manage valued digital property. The end-to-end security solutions protect corporate IS, WWW/Internet and Intranet applications, electronic commerce, and government applications. SPYRUS products enable encryption, digital signature, access control, and metering solutions through a combination of Algorithm Agile(tm) software and hardware technologies. The Company's portable tokens, including its LYNKS Privacy Card(R) and ROSETTA(tm) Smart Card, provide a personal, portable electronic identity that enables people to conduct secure electronic transactions anywhere, anytime. Its software solutions include Certification Authority (CA) and Public Key Infrastructure (PKI) services, Secure Electronic Transaction (SET(tm)) payment card security, Secure Sockets Layer (SSL) channel security, and Secure HTTP (S-HTTP) document security. SPYRUS is headquartered in San Jose, California and has branch offices in Maryland, Massachusetts, New Jersey, Virginia, England, and Australia. In 1997, SPYRUS acquired Terisa Systems(R) Inc., which operates as a wholly owned subsidiary in Los Altos, California. For more information about SPYRUS, visit the Web site at www.spyrus.com.

SPYRUS(R), SPEX/(R), Security In A Box(R), and LYNKS Privacy Card(R) are registered trademarks of SPYRUS. ROSETTA(tm) and Algorithm Agile(tm) are trademarks of SPYRUS. Terisa Systems(R) is a registered trademark of Terisa Systems, Inc., a wholly owned subsidiary SPYRUS.

All other trademarks are the property of their respective owners. EDITORS NOTE: This release is available on the SPYRUS Web site at www.spyrus.com