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NEW THREAT TO BUSINESS INFORMATION SPURS SALES OF ENCRYPTION PHONES & FAX UNITS

 NEW THREAT TO BUSINESS INFORMATION
 SPURS SALES OF ENCRYPTION PHONES & FAX UNITS
 PHOENIX, May 1 /PRNewswire/ -- The end of the Cold War has not meant the end of the spy business.
 CIA Director Robert Gates has stated that U.S. businesses are increasingly the target of espionage by those foreign governments once interested in political and military information.
 One solution to the threat is a new generation of telephone, data modem and fax machine developed by Motorola (NYSE: MOT) for the U.S. government and now available on the commercial market. Motorola's SECTEL telephones, while they look like normal, full-feature business phones, are special in that they encrypt the transmission with a sophisticated mathematical "public key algorithm" that would take decades of computer time for an eavesdropper to decode -- and the code can be changed with each new message. The receiving phone, computer or fax is equipped with the formula to read the message instantly, so that normal voice quality and fax speed is maintained. The technology is a far cry from the days of lengthy manual coding and decoding of sensitive messages. Over 100,000 of Motorola's SECTEL units are already in use.
 Robert Wade of Motorola's Secure Telecommunications office in Phoenix, where SECTEL phones originate, commented: "We appreciate the exposure that the CIA director is giving to this important business issue, but we would add that the domestic threat presented by the illegal eavesdropper, the accidentally overheard conversation or the misdirected fax is just as real. We can't put a dollar figure on it, but our estimate is that many, many millions of dollars are being lost annually because of unsecured communications surrounding high-stakes lawsuits, business acquisitions, earnings reports of publicly traded companies, and research operations of biochemical and other industries. While it is true that many of our units are sold to multinational companies and to U.S. firms doing business overseas, a great number of our sales of SECTEL phones are being sold to U.S. professionals who do no foreign business whatsoever."
 While there are some classified differences between the phones and faxes sold to the U.S. military and the equipment sold to private businesses, essentially the same phones that linked the White House to General Schwarzkopf's Desert Storm headquarters are now sitting on the desks of corporate executives, CPAs and lawyers who deal in sensitive information. For firms dealing in foreign trade, the units allow sensitive information to pass through the labyrinth of wires, microwave dishes and satellite links with an iron-clad assurance of privacy. Oil and gas exploration groups have been using SECTEL(R) phones since they first became available.
 The U.S.-made units sell in the commercial market for approximately $3,000, about the cost of a personal computer. Because they reduce the need for travel on sensitive matters, the price tag is considered by corporate buyers to be a good investment.
 -0- 5/1/92
 /CONTACT: Robert Wade of Motorola, 602-441-2045/
 (MOT) CO: Motorola, Inc. ST: Arizona IN: TLS SU:


BR-BN -- LA014 -- 5511 05/01/92 13:45 EDT
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Publication:PR Newswire
Date:May 1, 1992
Words:510
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