Worldtalk Granted Government Approval to Export WorldSecure Products With 128-Bit Encryption to Financial Institutions Worldwide.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 18, 1998--Worldtalk(R) Corporation (Nasdaq: WTLK) today announced that the United States Department of Commerce, Bureau of Export Administration, has granted the company a license to export WorldSecure(TM) Server and Client with 128-bit encryption to banks and financial institutions throughout most of the world. WorldSecure with 128-bit encryption allows banks and financial institutions to take advantage of strengthened protection of their data and information assets when communicating via Internet e-mail.

In support of today's announcement, Jacques Macherel, president of TERCOM, Worldtalk's Switzerland distributor, had this to say: "We are pleased that the U.S Government has granted Worldtalk this export license. The WorldSecure prospects here in Switzerland have been waiting for strong encryption support before fully endorsing the product. We are now able to better position WorldSecure as the solution for establishing confidentiality and privacy over the Internet."

Prior to today's announcement, Worldtalk had been restricted, by the terms of a prior license, to exporting 128-bit encryption to foreign subsidiaries at least 25% U.S. owned. Today's announcement marks an important milestone for the industry as banks and financial institutions internationally will now be able to leverage WorldSecure Server and Client to protect their confidential and sensitive communications using strong encryption combined with the most comprehensive set of e-mail security countermeasures.

"This license will help us extend our leadership in the financial services market beyond the United States," said Bernard Harguindeguy, President and CEO of Worldtalk Corporation. "Our WorldSecure e-mail security solutions are ideal for the financial market as they help reduce corporate liability, ensure compliance with industry and government regulations, and protect the confidentiality and integrity of documents sent over Internet e-mail."

Encryption and Key Length

On September 16, 1998, the Clinton Administration announced a liberalized encryption export control policy. The policy was implemented as to banks and financial institutions by regulations issued on September 22, 1998, which allow U.S. vendors to ship strong encryption software to foreign banks and financial institutions. The banking regulations permit exports under License Exception "KMI" to 44 listed countries or under an Encryption Licensing Arrangement to virtually all countries.

The Bureau of Export Administration is expected soon to issue further regulations to implement the September 16 policy announcement and extend the liberalized policy for banks to three additional market segments: insurance companies, health/medical companies (except biomedical/pharmaceutical firms and military agencies), and online merchants, after a one-time government review. Worldtalk has submitted -- and is waiting approval of applications for License Exception authorization to export strong encryption to these three new market segments.

The strength of encryption is largely a function of the length of the software keys measured in bits. The larger the key size the more difficult it becomes for a person with malicious intent to decrypt communications through hacking or other methods. A message encrypted with 56-bit WorldSecure software represents 65,536 times more possible keys than 40-bit technology. There are approximately one trillion possible keys for 40-bit encryption and 72 quadrillion keys for 56-bit technology. A message encrypted with 128-bit WorldSecure software is 309,485,009,821,345,068,724,781,056 times more difficult to break than a message encrypted using 40-bit technology.

Worldtalk Corporation

Worldtalk Corporation is a leading provider of content security and policy management solutions. The company's WorldSecure policy management platform enables organizations to define and manage Internet e-mail and Web security and usage policies, reducing the risks and liabilities associated with Internet communications. The company delivered the industry's first solution for managing and enforcing e-mail security policies in September 1997. Since then, organizations have deployed WorldSecure solutions to ensure confidentiality of their external e-mail communications, protect their intellectual property, and prevent SPAMs and Viruses. Worldtalk products include the award-winning WorldSecure/Mail and WorldSecure/Web and are marketed and sold worldwide by Worldtalk, Value Added Resellers (VARs) and distributors. For more information, please visit us at http://www.worldtalk.com.

Worldtalk is a registered trademark and WorldSecure is a trademark of Worldtalk Corporation. All other product names mentioned are trademarks or registered trademarks of their respective companies.