Paralon's New Dial-up Security Product Offers DES vs. Clipper Alternative

June 20, 1994 -- Bellevue, Wash.--Paralon solves a global security problem
facing the client-server market today: encryption key management.

PathKey, from Paralon Technologies Inc., is a powerful security device that
easily attaches to computers, workstations, and modems for use in serial
data communications and dial-up network connections. PathKey automatically
provides hardware authentication, access control, and real time data
encryption. Unlike other access security devices currently on the market,
PathKey optimizes security, affordability, and ease-of-use through
effective automation.

PathKey, a unit about the size of a small cellular phone, is simply
inserted between the serial port of a computer and a modem, and is
configured to communicate invisibly with a PathKey at the other end. The
device controls access to computers with a unique authorization process
and automatically encrypts all data sent between two PathKey-equipped
computers, based on a NIST-approved Type 2 DES encryption processor. DES,
a private-key encryption method, has been enhanced by Paralon through
automatic per-session key generation. "Key management is totally
automatic. PathKey's dynamic keys provide much better security than static
keys, commonly used in most public and private key systems" comments Roger
M. Thomas, Paralon President. "PathKey's enhancements make DES more secure
yet simpler -- a viable alternative to Clipper."

At a list price of $285, PathKey is priced at a fraction of most computer
access security devices. At the same time, its elegantly simple technology
allows end-users and IS managers to easily install the unit. It operates
invisibly without any user passwords, tokens, or dial-backs.

Security concerns are growing as laptop and notebook computers,
telecommuting, and remote access become commonplace. PathKey provides an
excellent answer to those concerns, whether used for peer-to-peer or
client-server applications. It can be used with most computing platforms,
including PCs, Macs, workstations, routers, servers, mainframes, and
minis. PathKey is a cost-effective solution for IS managers concerned
about unauthorized access to mission-critical processes and data, now
found more and more in distributed computing and client-server
environments. PathKey can also prevent disgruntled current or former
employees from gaining unauthorized access to computing systems.

To install PathKey, the user, or LAN manager briefly connects two PathKey
units together, once. This momentary procedure establishes communication
authorization between the two units built on unique hardware
identification in each unit. Once installed, PathKey will challenge all
incoming communications. If an authorized PathKey response is not
received, the modem is instructed to hang up. If the communication is
authorized, a unique single-session base-key is automatically generated.
This procedure adds less than a second to the session establishment. All
data is DES-encrypted and sent, then decrypted by the receiving PathKey.
All encryption/decryption is accomplished real-time in the hardware,
transparent to the user.

All authorization and authentication "handshake" processes between PathKeys
are also encrypted. Thomas notes "our security paradigm is also the
foundation for strategic relationships and future licenses being developed
with makers of communications and networking technologies."

Now shipping, PathKey market segments include Fortune 500, banks, legal,
accounting, insurance, health care, telecommunications, and government
agencies.

Paralon Technologies, founded in Spring 1992, was initially funded through
private placements. Its recent Series A stock offering was
over-subscribed, enabling the company to accelerate its technology and
market development activities.

Paralon Technologies, headquartered in Bellevue, Wash., provides access
control and encryption equipment that balances corporate control and user
freedom in distributed computing. For more information, contact Paralon at
206-641-8338.

Paralon Technologies
3650 131st Avenue SE, Suite 210
Bellevue, WA 98006
206-641-8338,  fax 206-641-1347

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