LOTUS IS SHIPPING MORE SECURE INTERNATIONAL EDITION OF NOTES RELEASE 4

OZZIE OUTLINES NEW FEATURE AT RSA DATA SECURITY CONFERENCE

SAN FRANCISCO, Jan. 17, 1996 -- Lotus Development Corp. today announced
that the International Edition of Lotus Notes Release 4 is shipping with
64-bit encryption, providing users significantly greater protection
against adversaries than previous international versions of the product.

Ray Ozzie, president of Iris Associates, the developer of Lotus Notes,
informed an audience at the RSA Data Security Conference here today that
Notes Release 4, which began shipping this month, utilizes a new method of
security called "differential workfactor cryptography." This new method
allows the International Edition of Notes to use an encryption key equal
in strength to the 64-bit key in the North American Edition, without the
use of "key escrow" technologies. Lotus' unique encryption technique
significantly increases international customers' information security,
while neither increasing nor decreasing government access to encrypted
information as compared to previously exported releases of Lotus Notes.

Ozzie explained that in the International Edition of Lotus Notes Release 4,
whenever an encrypted 64-bit bulk data key is generated by the product, it
is bound to a "workfactor reduction field," giving the U.S. government
exclusive access to 24 of the 64 bits. When using the North American
Edition of Lotus Notes within the U.S. and Canada, however, full 64-bit
encryption is employed without the "workfactor reduction field." The two
editions of Notes are fully interoperable.

"We are very pleased to have arrived at a pragmatic short-term solution
that addresses our international customers' requests for greater security
within Notes," Ozzie said. "However, we continue to argue vigorously that,
due to clear and present threats to our global information systems, all
interests would be well served by widespread use of strong, high-grade
cryptography. Without substantial rethinking of U.S. cryptography policy,
particularly as it pertains to export controls, our global and national
economic security is at risk."

Lotus has used cryptography to provide many of the security features found
in Lotus Notes. When Notes first shipped in December 1989, Lotus pioneered
the use of both public key and exportable secret key algorithms in
commodity products. Lotus has been one of the major forces in the
industry's drive for global economic security, arguing for liberalized
export restrictions on high-quality secure information systems.

Lotus Notes Release 4 will support 16 platforms and 20 languages. French,
German, International English, Italian, Japanese, Korean, Spanish,
Simplified Chinese and Traditional Chinese will ship simultaneously with
the U.S. versions. Brazilian, Portuguese, Czech, Danish, Dutch, Finnish,
French Canadian, Hungarian, Norwegian, Polish and Swedish will ship within
90 days.

Lotus Notes is the leading client-server platform for developing and
deploying strategic groupware applications that help organizations
communicate, collaborate and coordinate strategic business processes
within and beyond their organizational boundaries to achieve improved
business results. More than 7,000 companies and 3.3 million people use
Notes to improve key business processes such as customer service, sales
and account management, and product development. Lotus Notes supports all
major operating systems: IBM OS/2 Warp, Apple Mac OS, UNIX platforms
including IBM AIX, Sun Solaris, HP-UX, and SCO OpenServer, and Microsoft
Windows and Windows NT. Notes is also available as a NetWare loadable
module for the Novell environment.

Lotus Development Corp., a subsidiary of IBM Corp., offers high quality
software products and support services that reflect the company's unique
understanding of the new ways in which individuals and businesses must
work together to achieve success. Lotus' innovative approach is evident in
a new class of applications that allows information to be accessed and
communicated in ways never before possible, both within and beyond
organizational boundaries. The company also provides numerous support
services, both from its consulting division and its award-winning 24-hour
support center.

EDITOR'S NOTE: All Lotus news releases are available on the Internet, via
the Lotus Development Corp. Home Page at http://www.Lotus.com. The Lotus
Home Page is an easy way to find information about Lotus and its business
partners' products and services.

A copy of this release and other company information is also available via
fax by dialing 1-800-57-LOTUS within the U.S. and Canada or 201- 946-2336
outside the U.S. and Canada. Questions concerning the service should be
directed to Lotus' corporate communications department at 617-693-5625.
 
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