SEATTLE, Wash. — December 9, 1998 — CyberSafe Corporation (http://www.cybersafe.com), a leading provider of secure Internet and client/server communications, today announced its acquisition of SAGUS Security, Inc. (http://www.sagus-security.com), a privately held secure Internet and public key client/server communications company based in Ottawa, Canada. Under the agreement, CyberSafe will operate SAGUS as a subsidiary, under the name CyberSafe Canada.

"This acquisition is part of our aggressive growth strategy to satisfy the complex security requirements of our customers and business partners on a global basis," said Jim Cannavino, chief executive officer of CyberSafe. "We are pleased to have SAGUS join us, and are already jointly bidding several large scale solutions in the finance industry."

Combining the SAGUS Defensor™ family of products with the TrustBroker™ Security Suite from CyberSafe creates a more comprehensive security solution. The Defensor architecture utilizes encryption and strong authentication to enhance security for legacy applications. It delivers a quick and easy method for securing Public Key Infrastructure (PKI) applications without affecting development and implementation cycles. Adding this solution to CyberSafe’s portfolio allows customers to build their applications on PKI, Kerberos or a combination of both security standards. This uniquely positions CyberSafe in the marketplace — no other vendor can combine both of the leading security infrastructures.

The union of CyberSafe and SAGUS professional security services organizations allows CyberSafe to immediately deliver more resources to the high growth security services sector of the market. According to an April 1998 study by International Data Corporation, security services is projected to reach approximately $7.4 billion in 1999.

Significant sales and operational efficiencies will also be achieved through this acquisition. CyberSafe’s international sales presence will be expanded through SAGUS’ North American and European distribution partners. Additionally, the customer service organizations will extend coverage through the establishment of an East Coast service and support operation.

The SAGUS Defensor family will become part of the TrustBroker Security Suite. Defensor secures communications between clients, servers, gateways and mainframes within an enterprise, regardless of the network technology or the geographic location of the communicating parties. Defensor is designed to support multiple encryption engines and Certificate Authorities, including Entrust (Nasdaq:ENTU), the leading PKI vendor. SAGUS customers include the Canadian Department of National Defence, the Royal Canadian Mounted Police, and the United States Department of Agriculture.

The TrustBroker Security Suite from CyberSafe provides secure single sign-on functionality for large-scale enterprise networks. It is based on a multi-platform authentication infrastructure that includes Kerberos secret key, Public Key, token cards and smart cards.

Richard Timmons, SAGUS president and chief executive officer, will report to Coleman Sisson, president and chief operating officer of CyberSafe Corporation.

The TrustBroker Security Suite and Defensor products are immediately available. An integrated solution is expected to be offered in the first half of 1999. For more information, email info@cybersafe.com or call (425) 391-6000, ext. 2004.

CyberSafe Corporation, a leading provider of secure Internet and client/server communications, adds critical security to enterprise applications such as SAP, PeopleSoft, Oracle and legacy mainframe applications. Its award-winning TrustBroker Security Suite combines both public key and secret key technologies to deliver an uncompromised best-of-breed security solution along with a complete range of consulting services. Founded in 1991, CyberSafe is a privately-held corporation headquartered in Issaquah, Wash. Leading investors in the company include Accel Partners, OAK Investment Partners, and Polaris Venture Partners. For further information, visit http://www.cybersafe.com, email info@cybersafe.com or call (425) 391-6000.

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