WinMagic Awarded FIPS 140-1 Level 2 and First AES Validations At the Opening Ceremony of the CMVP Conference 2002 in Washington DC, March 26 2002.

Business Editors

WASHINGTON--(BUSINESS WIRE)--March 26, 2002

Abstract:

- WinMagic Inc has scored two major successes by receiving the first AES
Cryptographic Module Validation Program (CMVP) certification from NIST and also
the first FIPS 140-1 validation for a disk encryption software product.

- Federal regulations make FIPS 140 validation mandatory for Government
application.

- Certification positions SecureDoc as the highest-security disk encryption for
both Governmental and commercial use.

- PKCS-11 architecture allows SecureDoc to be the most versatile encryption
solution, as stand-alone software or integrated with smart cards, biometrics or
PKI systems.

WinMagic Inc. will be honored to accept the worldwide first Advanced Encryption Standard (AES) certification pursuant to the Cryptographic Module Validation Program (CMVP) at the opening ceremonies of the CMVP Conference 2002 in Washington DC. This special award is being presented jointly by the US Government National Institute of Standards and Technology (NIST) and the Canadian Government Communication Security Establishment (CSE).

The National Institute of Standards and Technology (NIST) has been working with industry and the cryptographic community to develop an Advanced Encryption Standard (AES). The objective is to develop a Federal Information Processing Standard (FIPS) that specifies an encryption algorithm capable of protecting sensitive government information well into the 21st century. In October 2000 NIST announced that Rijndael algorithm has been selected as the proposed AES. In early March 2002, it published the AES test tool for the CMVP. On March 26, 2002, NIST shall recognize WinMagic Inc. accomplishments with the first AES validation in this program.

Coincidentally, NIST approved WinMagic's SecureDoc Disk Encryption FIPS 140-1 level 2. Both the FIPS 140-1 certification as well as AES CMVP certification will be awarded to WinMagic Inc. at the CMVP conference 2002 in Washington DC, March 2002.

US federal agencies and departments are required to comply with FIPS 140-2 and utilize FIPS 140 certified cryptographic devices when they exist. Any possible waivers to this requirement must be approved directly by the head of the agency. By receiving FIPS 140-1 certification for its SecureDoc Disk Encryption, WinMagic fulfills these requirements, and additionally, can support security initiatives such as HIPAA.

"WinMagic's commitment to excellence is again demonstrated by their decision to reach for the higher FIPS 140-1 level 2 security rating by NIST," says Laurie Mack, director cryptographic services at IBM Global Services, Domus lab in Ottawa, Canada, the lab conducting the FIPS validation for SecureDoc. She goes on to point out that: "While most software products can only achieve level 1 validation, WinMagic's excellent design has enable SecureDoc to go for level 2 and a number of the level 3 requirements. This achievement underscores a trusted platform not only for the government, but for any enterprise that wishes to protect its valuable digital data and transactions."

"We are pleased with the speed the industry is embracing the AES algorithm. NIST has been validating cryptographic products that may be used in the US Federal Government" Annabelle Lee, director of CMVP, for NIST says about WinMagic's achievement. "Because FIPS is an acknowledged standard, we expect commercial customers will also demand FIPS validated products. The availability of such products is just helpful to users".

"WinMagic Inc. has the only disk encryption certified by the NSA for classified data. Now, SecureDoc has the only disk encryption with FIPS 140-1, thus approved for sensitive but unclassified data for US government agencies and departments." says Jim Armstrong, WinMagic's National Sales Manager. "We believe we have the most secure Disk encryption products worldwide, both affordable and extremely versatile products for all organizations undertaking the protection of its valuable data."

About DOMUS Information Technology Security Laboratory, IBM Canada Limited. DOMUS ITSL was one of the original three, and the only Canadian laboratory, accredited to conduct FIPS 140 validation testing in 1995. They have conducted validation testing for the most cryptographic modules with experience in software, hardware, VPNs, smartcards and tokens, PKI, wireless, etc, ranging from Level 1 to 4. The first software cryptographic module validation testing, the first Java cryptographic module and now the first AES algorithm were all achieved through DOMUS ITSL. DOMUS ITSL is also approved to conduct Common Criteria evaluations in the Canadian Common Criteria Evaluation and Accreditation Scheme.

About WinMagic Inc.

WinMagic Inc. is a privately held company located in Mississauga, Ontario, Canada, that develops and markets data security products for governments and the private sector.

Utilizing Public Key Cryptographic Standards PKCS-11 from the ground up, WinMagic designs its Disk Encryption products with security and flexibility unparalleled in the industry. Its SecureDoc disk encryption easily integrates with popular third-party smart cards and Public Key Infrastructure (PKI) right at pre-boot time. SecureDoc provides the upgrade path from a password-only solution to enterprise-wide token-based PKI integration.

WinMagic's SecureDoc has been validated under the Common Criteria, NIST Cryptographic Module Validation and now is the only one with FIPS 140-1 Level 2. Its FORTEZZA-based version is the only one to have earned certification by the NSA to protect classified data for US Government agencies.

For more information regarding WinMagic products or services, please contact Sylvia Nguyen-Huu at [phone] ext. 222, or visit the company website at www.winmagic.com .

Note: The National Institute of Standards and Technology (NIST)'s permission to quote its name should not be deemed to be an endorsement of any company or product.