RSA PREVAILS IN ARBITRATION AGAINST CYLINK

SEPTEMBER 18, 1995 -- REDWOOD CITY, CA -- An Arbitration Panel recently
ruled that Cylink does not have a license to RSA patented technology, that
RSA's software licensing practices do not breach any agreement with Cylink
or its wholly owned subsidiary Caro-Kann and that RSA now has the
exclusive right to license the RSA patent.

In a September 6, 1995 ruling, an Arbitration Panel, formed by agreement of
the parties, and after nearly a month of testimony, ruled in favor of RSA
on every significant issue. The Panel held that neither Cylink nor
Caro-Kann had a license to practice RSA patented technology. Cylink
admittedly incorporates this technology in its Secure X.25 product line,
without any license to do so.

The Panel also found that RSA's software licensing practices did not
materially breach any of Cylink's rights. The Panel did not rule that
anyone, (specifically including RSA and its software customers) infringed
any existing patent rights of anyone - including Cylink.

As a result of the Panel's ruling, RSA now has the exclusive right to
license the patented RSA technology. According to Jim Bidzos, the
President of RSA, "RSA will continue to conduct its software business in
exactly the same way that it has for the past ten years. In addition, RSA
anticipates that licenses to the RSA Patent will now be much more readily
available, because they can now be granted without Cylink interference.
RSA has all of the intellectual property rights which it needs to license
its software. RSA will vigorously defend against any claim to the
contrary."

A recent Cylink press release on the Ruling of the Arbitration Panel is
wildly inaccurate. The same Robert Fougner (Cylink's General Counsel) who
is cited in the Cylink press release has repeatedly made express
representations to third parties that the Stanford Patents do not cover,
and are not infringed by, the manufacture, use or sale of products
incorporating RSA's TIPEM software developer's toolkit. As noted by Mr.
Bidzos: "Cylink lost every single significant issue in the Arbitration.
Their press release was simply an attempt to cover up what has been a
crushing defeat."

Questions regarding the Arbitration Panel Ruling or RSA licenses should be
directed to Kurt Stammberger, RSA Technology Marketing Manager, or Paul
Livesay, RSA Director of Legal Affairs.
 
 =========================================================
 From the 'New Product News' Electronic News Service on...
 AOL (Keyword = New Products) and Delphi (GO COMP PROD)
 =========================================================
 This information was processed from data provided by the
 company/author mentioned. For additional details, please
 contact them directly at the address/phone# indicated.
 Trademarks are the property of their respective owners.
 =========================================================
 All submissions for this service should be addressed to:
 BAKER ENTERPRISES,  20 Ferro Dr,  Sewell, NJ  08080  USA
 Email: rbakerpc@delphi.com  -or- RBakerPC (on AOL/Delphi)
 =========================================================
