TROY Group Expands Wireless Initiative; Company Will Add 802.11b Technology to Complement Bluetooth Strategy.

Business Editors

SANTA ANA, Calif.--(BUSINESS WIRE)--July 18, 2000

TROY Group Inc. (Nasdaq:TROY) announced that its subsidiary, TROY XCD, has expanded its wireless connectivity initiative to include the development of 802.11b wireless networking printing and connectivity. With this announcement, the company will address both of the major mobile wireless connectivity standards: Bluetooth(TM) and 802.11b.

The 802.11b standard is a high-performance, 11 megabits-per-second wireless technology that has emerged rapidly during the past year. The big advantage of 802.11b is that it allows mobile laptop computer users to access most corporate networks in a seamless manner because of its compatibility with the highly popular Ethernet Local Area Network (LAN) standard. This compatibility enables 802.11b users to take advantage of corporate file servers, printers, and other resources just as if their computer was hardwired to the network. 802.11b is also perfect for building small business and home networks, since it eliminates the need to run cables through walls and ceilings.

Leading computer technology companies such as Cisco, 3Com, Lucent, Dell, Apple, and others have introduced 802.11b products in recent months. According to a recent study by Cahners In-Stat Group, the enterprise wireless LAN market will expand at a 25% compound annual growth rate from 2000 to 2004, reaching $2.2 billion in worldwide sales.

The 802.11b standard complements the company's Bluetooth wireless technology by providing a solution for high-end laptop and handheld computer users, especially those who need wireless access to enterprise corporate networks. Users will select 802.11b products over Bluetooth in applications that require higher performance speed (11 megabits per second compared to 1 megabit per second), longer range (hundreds of feet compared to about 30 feet), and superior multi-user networking capabilities. Bluetooth will be the preferred choice for devices that require less electrical power, including small battery-powered products such as cell phones and PDAs. In addition, Bluetooth products are simpler to use and have a lower price point.

"It is the company's intent to offer products that meet the requirements of both the 802.11b and Bluetooth standards, maximizing our market penetration and revenue potential," commented Patrick Dirk, TROY Group's Chairman and CEO. "The 802.11b has become the new standard for wireless access to corporate enterprise networks and is a natural addition to our solution offering. Our 802.11b solutions should be timely since we already have most of the hardware and software completed from our existing network printing product line. By adding 802.11b devices to our upcoming lineup of Bluetooth products, we intend to rapidly expand our technology leadership position in wireless connectivity solutions."

The company will be combining its field-proven network printing software with the 802.11b wireless technology. The product will allow multiple laptop computers, handheld computers, and other devices operating on the 802.11b standard to send jobs to a printer simultaneously without the need for cables. The solution will support all of the popular network operating systems, including TCP/IP, Windows NT/2000, NetWare, AppleTalk, and Windows 95/98 peer-to-peer networks. The product will be especially ideal for applications where the printer must be moved frequently when the printer must be located in an area where conventional cabling is not practical. It will also be ideal for wireless small business and home applications.

TROY Group plans to make 802.11b product announcements during or before the COMDEX Fall show, November 13-17, in Las Vegas.

About TROY Group

TROY Group (www.troygroup.com) is recognized as a worldwide leader in financial payment solutions. The U.S. Treasury has printed all its checks using TROY payment systems since 1984. The company is also a leading supplier of network printing and Internet connectivity solutions. TROY (Nasdaq:TROY) has established a number of strategic relationships with companies such as Hewlett-Packard (NYSE:HWP), IBM (NYSE:IBM), Standard Register (NYSE:SR) and Equifax (NYSE:EFX) and distributes its solutions in 55 countries. TROY's current technologies enable the company to remain on course to become a leading worldwide provider of e-commerce payment solutions and network and Internet connectivity solutions. The company announced a Bluetooth wireless technology initiative in March, and became the first company to demonstrate a product for PC printing across a Bluetooth wireless link in June.

Forward-looking statements of TROY (statements that are not historical fact) in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by the statements made in this release, including the continued growth in acceptance of eCheck Secure by e-merchants and e-consumers; the ability of TROY to integrate and offer ACH solutions with its eCheck Secure software; the timely and successful development of Bluetooth and 802.11b products; the market acceptance of products incorporating wireless printing technologies; the ability to continue to develop and market other e-commerce payment, networked payment and wireless and other connectivity technologies; TROY's ability to refocus its management and resources on these emerging technologies; the ability to hire and retain qualified management, technology and other personnel; the impact of competition from existing and new technologies and companies; the ability to identify and assimilate acquired companies and technologies; the continued demand for printed financial documents; and the other factors set forth in TROY's periodic reports and other documents filed with the Securities and Exchange Commission from time to time.