Taking the Contagion Out of Computer Viruses: CopyTele's Cryptele USS-900 Makes E-Mail Safer.

Business Editors/Technology Writers

MELVILLE, N.Y.--(BUSINESS WIRE)--June 19, 2000

Encryption Device Prevents Computer Viruses From Spreading

CopyTele, Inc., a developer and provider of multi-functional telecommunications and encryption products, today announced that its Cryptele(TM) USS-900 now offers protection from computer viruses that spread through e-mail attachments.

According to Frank W. Trischetta, Senior Vice President, Sales and Marketing for CopyTele, the USS-900 provides virus protection capability by encrypting e-mail address books on computers. This virus protection solution is CopyTele propriety technology, and CopyTele has applied for patent protection on this technology. While a computer may be infected with a virus, the contacts listed in the e-mail address book will not.

"The cost to recover from an e-mail virus attack can be devastating," said Frank W. Trischetta, Senior Vice President, Sales and Marketing for CopyTele. "By making address books inaccessible to a virus but accessible to the e-mail program user, the USS-900 encryption solution provides a high level of security against a virus running rampant throughout an organization."

CopyTele's USS-900 is compatible with Microsoft's Outlook(TM) program. Compatibility testing on additional e-mail programs is currently underway. CopyTele plans its first public demonstration of the USS-900's virus protection capability during the Armed Forces Communications & Electronics Association (AFCEA) conference June 20 through 22 at the Washington Convention Center in Washington D.C.

Continuing a family of products under the brand name Cryptele(TM), CopyTele's USS-900 hardware solution links the high-grade strength of the CITADEL(TM) CCX encryption chip from Harris Corporation with CopyTele's unique technology for combining multiple communication data streams into a single-button system that is totally transparent to the user.

Priced for the commercial marketplace at under $1,000 per unit, the USS-900 is the first high-grade hardware product to combine in a single device the capability to encrypt voice, fax, e-mail attachments and data file transfer over ordinary telephone lines or satellite communication terminals -- as well as to secure computer-stored files.

CopyTele has introduced its products to commercial, military and government end users via its direct sales team as well as a network of integrators, value-added resellers (VARs) and dealers.

Additional information on the USS-900 and other CopyTele products is available via the Internet: www.copytele.com. "CopyTele" and "Cryptele" are trademarks of CopyTele, Inc. "Citadel CCX" is a trademark of Harris Corporation. Outlook is a trademark of Microsoft Corporation.

Forward-Looking Statements:

Statements that are not historical fact may be considered forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. Consequently, actual events or results may differ materially from those expressed or implied by those set forth in such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, our ability to successfully market the USS-900 and our other encryption products; our continuing ability to purchase the Citadel(TM) CCX encryption chip from Harris for use in the USS-900 and our other encryption products; our production capabilities and those of our suppliers as required for the production of the USS-900 and our other encryption products; long-term product performance and the capability of our dealers and distributors to adequately service our products; our ability to maintain an acceptable pricing level to end-users for our products; the ability of suppliers to meet our requirements and schedule; our ability to successfully develop our new products under development, particularly our new encryption products; the possible development of competitive products that could render our products obsolete or unmarketable; and other risks as detailed from time-to-time in our filings with the Securities and Exchange Commission. We undertake no obligation to update any forward-looking statements as a result of new information, unanticipated events, or otherwise.