Vadium Technology Announces Appointment of Strategic Distribution Partner for Japan.

Business Editors/High-Tech Writers

TACOMA, Wash. & TOKYO--(BUSINESS WIRE)--June 23, 2003

Vadium Technology, Inc., today announced that it has appointed PeerCom, Inc., as its distributor of its encryption software products for the country of Japan.

"We are very pleased to announce the appointment of our distributor for the country of Japan, PeerCom, Inc.," stated Rod Nicholls, President & CEO of Vadium Technology, Inc. "The leadership team at PeerCom has a long and successful track record of introducing new technology products to the Japanese market. We are very honored to be working with such an experienced group as this in introducing the AlphaCipher Encryption System to the Japanese marketplace."

Mr. Nobuo Hirao, President of PeerCom has over 30 years in successfully marketing sophisticated technology applications and business service solutions in Japan. "Because of the ever-growing and poignant awareness in Japan of the need for better IT security, we have been investigating various security products to introduce to the Japanese marketplace. It is clear that there is a very large demand for a product like AlphaCipher, and that AlphaCipher can meet and exceed the customer requirements. We are very pleased to be working with Vadium Technology, Inc., to provide this solid encryption system to Japanese customers," stated Nobuo Hirao.

Mr. Evan Jaqua, President of Paccess, Inc., located in Portland, Oregon played a critical role in bringing together Vadium and Peercom into this strategic alliance. "The winning combination of Vadium's superior encryption technology and PeerCom's unique ability to sell new technologies will mean great things for the increasingly security and privacy sensitive Japanese marketplace," stated Evan Jaqua.

In the next thirty days Vadium Technology anticipates announcing a strategic distribution operation in the United Kingdom, and with additional distribution partners in both in the United States, Western Europe and Asia being named during the later half of 2003.

About Vadium Technology, Inc.

Vadium Technology, Inc., (www.vadiumtech.com) located in Tacoma, Washington, is a developer of the newest generation innovative security solutions for digital communications, data transmission and robust secure information storage. Based on patent-pending technology and 18 years of research and development, Vadium's AlphaCipher Encryption System(TM), implements a true digital One-Time-Pad ("OTP") cipher. The OTP is the only method of encrypting data where the strength of protection is immune to the mounting threats posed by breakthroughs in advanced mathematics and the ever-increasing processing power of computers. The consistently accelerating increases in computing power are proven to be a present and severe threat to all the other prevalent encryption methods. The Company's flagship product, AlphaCipher Desktop(TM), combines a portable, easy-to-use key management and storage system for small to mid-size sensitive workgroups, with a user friendly desktop guide to deliver fast, ultra-strong protection for data stored locally or transmitted over communication networks -- all of which strictly adheres to the principles of a true OTP cipher. Vadium's technology is suitable for government and commercial enterprise solutions where critical information demands the highest protection. Vadium's products can be purchased directly from Vadium or through one of its distribution partners, ACEncrypt Solutions, LLC (www.acencrypt.com) located in the Washington DC metro area or PeerCom, Inc.

About PeerCom, Inc.

PeerCom, Inc., (www.peercom.jp) located in Tokyo, Japan is a privately held technology distribution firm in the information and the communication technology field. In this field, PeerCom, Inc. concentrates on providing improvements in data protection and computer system management, by offering more secure information security systems by delivering the newest technology and combining it with its consulting services. PeerCom, Inc. currently distributes advanced CAT5 technology based servers developed by, Minicom Advanced Systems Ltd., (www.minicom.com). These servers include a KVM management system, A/V solutions and computer based education solutions targeted for use by the major Japanese corporations in electronics and communication industries.

About Paccess, Inc.

Paccess, Inc., (www.paccess.com), founded in 1995, is a streamlined alliance of IT business and technology experts located throughout the world, with headquarters in Portland Oregon and Tokyo Japan. The Paccess team provides professional consulting and business development services to business enterprises, primarily focused on international distribution partner introduction, international marketing representation, and international market analysis.