RSA Data Security, Inc. To Exclusively License Rights to Practice RSA
Public Key Encryption and Digital Signature Standard (DSS) Technologies

Company Becomes One-Stop Worldwide Source for Encryption Technology

REDWOOD CITY, Calif., Oct. 24, 1995 -- RSA Data Security, Inc. announced
that it is now licensing the "Schnorr" patent, which covers the Digital
Signature Standard (DSS), the U.S. government standard for digital
signatures. RSA also announced that it has renewed its exclusive licensing
agreement for the industry- standard Rivest-Shamir-Adleman (RSA) public
key cryptosystem developed at the Massachusetts Institute of Technology
(MIT). With the addition of the Schnorr patent to its portfolio of
encryption offerings, RSA Data Security has become the exclusive source
for the industry's most widely accepted security technologies.

RSA also announced that under its uniform, non-discriminatory licensing
plan, manufacturers will pay a one-time royalty when they sell products
containing RSA and/or DSS technology. No additional per-certificate or use
charges are required.

"For the first time, the patents covering the most popular encryption and
digital signature methods in the world, RSA and DSS, are easily available
on a non-discriminatory basis from a single vendor," said Jim Bidzos,
president of RSA. "By offering one-stop shopping for both systems, our
customers can seamlessly integrate both RSA encryption and DSS digital
signature methods into their products."

Widespread Implementation Many of RSA's software licensees -- such as
Adobe, Aquila, Atalla, National Semiconductor, Spyrus, Premenos, Spyglass,
Terisa Systems, Frontier Technologies, BroadVision, Checkpoint Software,
Raptor Systems, SafeCo Insurance, Wollongong, Square D, Interval Systems,
and Comm-Press -- have already requested patent licenses to both the RSA
patent and the authentication system developed by Dr. Claus Schnorr (the
"Schnorr" patent) which covers implementations of DSS. IBM and Siemens
currently offer DSS- based products, licensed under RSA's Schnorr patent,
to the U.S. government.

"Now that vendors can obtain patent licenses that cover DSS and RSA from
one source, we expect to see companies throughout the U.S., Europe and
Japan incorporate RSA and DSS technology into dozens of products,
including access control systems, network management systems, smart cards,
link encryptors, and wireless encryption devices," said Bidzos.

"The demand for these technologies is very strong and will continue to grow
as vendors increasingly incorporate security features into their products.
In the next several months we expect to be inundated with requests from
licensees. This is great news for the security industry, which has waited
patiently for easy availability of patents covering the RSA and DSS
techniques."

Digital Signatures A digital signature on an electronic document is an
encrypted form of data equivalent to a signature on a printed document,
such as a contract or other commercial agreement. It verifies that the
document is valid and unaltered, and that the person signing the document
has agreed to its terms. Furthermore, secure digital signatures cannot be
repudiated. The signer of a document cannot disown it by claiming it was
forged. Both DSS and RSA support digital signatures and certificates.
Several states, including California and Utah have recently enacted
legislation recognizing digital signatures as legally binding.

License Availability Uniform licenses to both the RSA and Schnorr patents
are available immediately. The license text, as well as other information
regarding these patents, is available on RSA Data Security's home page at
http://www.rsa.com. For existing customers of RSA's BSAFE and TIPEM
software toolkits, no separate patent licenses are required. All rights
under the patents to use, integrate and copy RSA's software are embedded.

RSA DATA SECURITY, INC.

RSA Data Security, Inc. is the world's brand name for cryptography, with
more than 15 million copies of RSA encryption and authentication
technologies installed and in use worldwide. RSA technologies are part of
existing and proposed standards for the Internet and World Wide Web,
CCITT, ISO, ANSI, IEEE, and business, financial and electronic commerce
networks around the globe. The company develops and markets
platform-independent developers kits and end-user products and provides
comprehensive cryptographic consulting services. Founded in 1982 by the
inventors of the RSA Public Key Cryptosystem, the company is headquartered
in Redwood City, California.
 
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