Validian's Secure Instant Messenger Now Available for Download; With Validian's Secure Instant Messenger, You Instantly Can Exchange Messages and Files Simply and in Total Security.

Business & High-Tech Editors

OTTAWA, Canada--(BUSINESS WIRE)--July 31, 2003

Validian Corporation (OTCBB:VLDI), an international provider of communication security technologies for networked environments, today announced the availability of its Secure Instant Messaging (SIM) for the general business community and for individuals who require the ease of use of instant messaging but were, up to now, wary of the fact that current IM systems do not offer certificate-based security. SIM can be downloaded from Validian's site: www.validian.com/products.

Validian offers SIM for a quarterly fee of $9.95. Corporations and the business community are invited to experience the benefits of SIM during a 3-month trial period without charge.

Validian's SIM system offers the highest level of security available for real-time communication and file exchange. SIM creates "gated communities" of trusted users. It offers a real-time and fully secure system for collaboration between individuals and groups, including instant messaging, file exchange, synchronous and asynchronous collaboration, and enterprise-wide presence. All SIM participants are authenticated and messages and files of any size and of any type, including video and audio files, can be transferred with full security.

"SIM enables individuals and corporations to set-up interactive, distributed data exchange sessions with a degree of security and ease not otherwise available in the market today," said Dr. Andre Maisonneuve, President and Chief Executive Officer of Validian. "Bilateral and multilateral exchanges can take place between any number of individuals, and files of any size can be transferred in full security at the same time."

All messages are encrypted using a unique session key known only to the originator and the recipient, which ensures the authenticity of messages. Message content cannot be decrypted or altered by any source during transit.

No rogue user can penetrate SIM or send messages to any SIM community member. SIM users are protected from receiving SPAM messages from unauthorized sources. SIM users are uniquely identified in the SIM domain controller, and may authorize new users or deny users the possibility of communicating with them. SIM provides an audit trail of every exchange, which can be transferred to a secure archiving system. Installation of SIM can be monitored by the corporate network administrator to ensure compliance with corporate security policies.

SIM can reach people anywhere on the Internet, behind and across firewalls, and carries the highest level of security in all communications. SIM is ideal for corporations for whom the issue of security and speed of communication is paramount.

SIM can be implemented on a USB flash memory card, which makes it an ideal medium for the road warrior to keep in touch with his environment in full security. SIM USB users plug their USB flash memory card into any computer linked to the Internet and have instant access to all their IM contacts and archived exchanges. The USB memory cards can hold a large amount of files that can be exchanged securely with any other SIM user.

SIM operates over Validian's Application Security Infrastructure (ASI) and benefits from all the security features of the ASI infrastructure.

About ASI

Validian's ASI is a comprehensive integrated infrastructure for securing distributed applications and Web services. Based on open standards and a distributed architecture, ASI delivers a security level comparable to that of more expensive and complex PKI or VPN solutions, but with the ease of use, low cost, and dynamic scalability of SSL. ASI is specifically designed for distributed applications and distributed networks. It automatically manages all critical security functions between any applications, including authentication, encryption, key generation, key distribution, addressing, and data transport. ASI is completely network independent, supporting most major platforms, network architectures, transport protocols, and development environments. ASI guarantees the delivery of the messages and files to, and only to, the target destination, without offering any possibility of being intercepted at any point during its transit.

About Validian Corporation

Validian Corporation has developed the Application Security Infrastructure (ASI) and SIM to secure exchanges between mutually authenticated application processes over the Internet. It has been designed specifically to facilitate deployment and use of distributed applications and distributed networks. This easy-to-use infrastructure enables organizations to rapidly develop and deploy secure, collaborative, distributed applications for sharing data over public or private networks. The company has offices in the U.S., Canada, and Switzerland.

Investors should carefully consider the preceding information, as well as information contained in this news release, before making an investment in the shares of the company. Information contained in this news release contains "forward-looking statements," which can be identified by the use of forward-looking terminology such as "believes," expects," "may," "should," or "anticipates," or negative thereof or given that the future results covered by such forward- looking statements will be achieved. The preceding matters constitute cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties that could cause actual results to vary materially from the future statements. Other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements.