V-ONE Receives U.S. Government's Broadest Approval To Export Strong Encryption, Offers Solution To Encryption Debate.

GERMANTOWN, Md.--(BUSINESS WIRE)--May 10, 1999--

V-ONE(R) Corporation (Nasdaq: VONE), the market leader in client/server Virtual Private Network (VPN) technology for extranets, today announced it has received the broadest approval granted by the U.S. Department of Commerce's Bureau of Export Administration (BXA) for exporting strong encryption (i.e., Triple DES (Digital Encryption Standard)) with its SmartGate(R) VPN product. Approval by BXA of SmartGate's key recovery feature, KRAKit(tm), means that organizations worldwide can ensure the confidentiality and integrity of their encrypted sessions and avoid third party/escrow agent requirements with this easy to operate, inexpensive approach that solves one of today's critical business problems - how to conduct global business communication protected by strong US encryption.

SmartGate and KRAKit together create a key recovery methodology V-ONE calls Trusted First Party(tm) (TFP), which enables the use of strong encryption to protect any application, in any vertical industry, by any customer, in any non-embargoed country. TFP also does not require export approval on a case by case basis, thus avoiding the prior restraint of freedom of speech issues cited by the Ninth Circuit Court of Appeals in their recent ruling on government encryption policies.

The KRAKit software necessary for re-creation of session encryption keys is available free with SmartGate 2.6, which is shipping today. SmartGate 2.6 uses 168-bit Triple DES encryption.

Because of federal restrictions on encryption export, strong U.S. encryption products can only be used to protect communications for companies operating domestically, with their overseas subsidiaries, in a few select vertical markets or in a limited number of countries - unless the product has key recovery or recoverable capabilities. With TFP's key recovery, SmartGate makes possible truly global Virtual Private Networking by offering a business solution for virtually any country that takes advantage of today's legal and commercial infrastructure and satisfies the requirements of government and the private sector alike.

"Without TFP, international organizations wanting to use strong encryption technology globally face an difficult choice - give up control of their own keys to third parties, protect mission-critical data with inferior encryption products or don't communicate over public networks," said David D. Dawson, Chairman and CEO of V-ONE Corporation. "V-ONE has solved this problem with an approach that is the essence of simplicity and ease of operation, for both end users and system administrators. While we seem to be in store for years of legal and political wrangling to determine U.S. encryption export policy, we have solution that business can implement quickly and inexpensively today."

William A. Reinsch, Commerce Under Secretary for Export Administration, said, "V-ONE's key recovery management process puts control of the keys in the customer's hands and provides a commercially acceptable approach while still permitting access by proper legal authorities."

V-ONE's TFP method provides strong encryption by meeting the key recovery needs of the U.S. government as well as business. Appropriate government authorities can gain access to individual session keys through existing legal channels, much the same way that law enforcement agencies gain approval for wiretaps. With TFP, they recover the keys directly from the V-ONE customer, who maintains their own internal key management procedures. Commercial organizations can now create VPNs for meaningful global electronic commerce with strong encryption while controlling the keys to their own communications. This eliminates the need to have either different encryption strengths for domestic and international use or to give a third party the ability to access their encryption keys - literally, the keys to all of their proprietary electronic transmissions.

V-ONE Viewpoint On Recent Court Ruling

On Friday, May 7, 1999, V-ONE Chairman and CEO David D. Dawson commented on the previous day's ruling by the Ninth Circuit Court of Appeals on encryption export:

"While it's too early to know the full ramifications of

yesterday's decision, a few things do seem clear at this point.

The government is virtually certain to appeal and continue

aggressively advocating its case, especially considering that the

court opinion cited its own "Agree(ment) with the government"

that government can indeed regulate properly constructed

encryption export provisions. Media reports indicate that the

government is expected to receive an emergency stay, which will

postpone the court's ruling from taking effect. It will probably

be a year or more before the courts definitively resolve this

matter.

U.S. companies cannot be left in legal limbo until this 'food

fight' is settled. Global customers must be allowed to use strong

encryption from US companies today in a way that is palatable to

the private sector and protects the legitimate concerns of law

enforcement.

A solution for today must avoid any tinge of prior restraint of

freedom of speech cited by the court in its decision. This means

an approach that does not require government approval for

specific export requests.

A solution for today must avoid any hint of third party or escrow

agent possession of session encryption keys so that organizations

are assured that they alone possess the keys to their own

communications kingdom.

And a solution for today must allow for any application to be

protected, by any customer in any non-embargoed country.

Fortunately, there is such a solution from V-ONE Corporation."

V-ONE's SmartGate VPN runs on a variety of platforms, including Windows NT from Microsoft (Nasdaq: MSFT), HP-UX from Hewlett-Packard (NYSE: HWP), Solaris and Trusted Solaris from Sun Microsystems (Nasdaq: SUNW) BSD UNIX and Linux. SmartGate features an open architecture that perfectly complements any network firewall, including products from BorderWare, Check Point Software Technologies (Nasdaq: CHKPF), Axent Technologies (Nasdaq: AXNT), Network Associates (Nasdaq: NETA), IBM (NYSE: IBM) and Cisco Systems.

About V-ONE Corporation

Providing enterprise-level network security protection since 1993, V-ONE(R) Corporation's flagship product is SmartGate(R) VPN, the industry's leading client/server VPN technology for secure extranets. Fortune 1000 corporations and sensitive government agencies worldwide use SmartGate for its integrated authentication, encryption and access control features. SmartGate's patented client deployment and management capabilities make SmartGate an unmatched solution for making meaningful electronic commerce in business-to-business environments an easy to use reality. V-ONE is headquartered in Germantown, MD. Product and network security information, white papers and the company's latest news releases may be accessed via V-ONE's World Wide Web site at www.v-one.com.

This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ in a material way from actual future events. For instance, factors, which could cause results to differ from future events, include rapid rates of technological change and intense competition, among others. Readers are also referred to the documents filed by V-ONE Corporation with the SEC, specifically the Company's registration statement as filed on the last report on Form 10-K which identify important risk factors for the Company. V-ONE, SmartGate and "Security for a Connected World" are registered trademarks of V-ONE Corporation. All product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.