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AlphaCipher Mobile for the Pocket PC

VIENNA, Va. –(Business Wire)– June 8, 2004 ACEncrypt Solutions, LLC(TM) is pleased to announce the development and release of AlphaCipher Mobile(TM). AlphaCipher Mobile is a software encryption application developed by Vadium Technology, Inc.(TM), that is designed to run on Personal Digital Assistants (“PDA”) running Microsoft’s Pocket PC 2003 operating system.

“AlphaCipher Mobile deploys the encryption power of the AlphaCipher Encryption System(TM) to mobile communication devices providing end users with the strongest encryption protection possible while working in a wireless environment,” stated David R. Vey, CEO of ACEncrypt Solutions, LLC. AlphaCipher Mobile has recently completed its beta testing and is available to be licensed by Beta users. Its final production and release date is July 1, 2004.

The features of AlphaCipher Mobile include:

— Encryption using a digital One-Time Pad.

— Encrypts/Decrypts text, files and folders on a Pocket PC PDA.

— Encrypts/Decrypts text within Pocket Word Documents.

— Ciphertext files are fully interoperable with AlphaCipher Desktop enabled PC workstations.

— Encrypts Instant Text Messaging Sessions.

— Allows for the destruction of Plaintext, Ciphertext and Keying Material using United States Department of Defense erasing protocols.

ACEncrypt Solutions is also pleased to announce Vadium’s follow on development project, to AlphaCipher Mobile. This additional project is the development of a voice encryption module for AlphaCipher Mobile. This new module will provide for the encryption and decryption of streaming voice communications on a Pocket PC enabled cell phone using the AlphaCipher Encryption System. It will initially use an 802.11 wireless network for transmission of the encrypted voice traffic. Over the next twelve months, Vadium expects to expand the voice transmission capabilities to include the CDMA and GSM communication channels.

In the United States, AlphaCipher Mobile can be directly licensed from ACEncrypt Solutions, LLC (http://www.acencrypt.com). To support existing and growing international demand for AlphaCipher products, Vadium has filed for a Commodity Classification Request with the United States Department of Commerce, Bureau of Industry and Security, and we expect to export AlphaCipher Mobile for the Pocket PC to all appropriate end users located within the EU+8 countries. Once this request is processed, international customers will be able to license AlphaCipher Mobile in the United Kingdom from Vadium’s existing sales office in London. Pacific Rim qualified buyers will be able to license AlphaCipher Mobile from Vadium’s distribution partner in Tokyo, Japan, via Peercom, Inc., (http://www.peercom.jp).

About ACEncrypt Solutions, LLC

ACEncrypt Solutions, LLC (http://www.acencrypt.com), located in Tysons Corner, VA, is a privately-held technology solutions marketing firm providing expert security solution software and hardware applications, consulting services and support to Corporate and Government approved buyers. ACEncrypt Solutions(TM) represents and leverages best of breed digital applications to provide robust solutions that assure the vital balance of security and privacy in tandem with end user ease of use to satisfy the information assurance needs of it customers. ACEncrypt Solutions is the exclusive reseller of the AlphaCipher Encryption System(TM) to the US Federal Government and the Washington DC metro area under license from Vadium Technology, Inc.(TM) of Tacoma, Washington.

About Vadium Technology, Inc.

Vadium Technology, Inc., (http://www.vadiumtech.com) located in Tacoma, Washington, is a developer of the newest generation innovative security solutions for digital communications, data transmission and robust secure information storage. Based on patent-pending technology and 20 years of research and development, Vadium’s AlphaCipher Encryption System (TM), implements a true digital One-Time-Pad (“OTP”) cipher. The OTP is the only method of encrypting data where the strength of protection is immune to the mounting threats posed by breakthroughs in advanced mathematics and the ever-increasing processing power of computers. The consistently accelerating increases in computing power are proven to be a present and severe threat to all the other prevalent encryption methods. The Company’s products, combine portable, easy-to-use key management and storage systems, with a user friendly graphical user interface to deliver fast, ultra-strong protection for data stored locally or transmitted over communication networks, for small to mid-size sensitive workgroups. Vadium’s technology is suitable for government and commercial enterprise solutions where critical information demands the highest protection.

ACEncrypt Solutions, LLC

Victoria Vey Looney, 703-918-9434

[email protected]