OTI to Provide First Contactless PKI Smart Card Solution

Rosh Pina and Petach Tikva, Israel (PROTEXT) - OTI (NeuerMarkt: OT5) today announced that it will provide the firstcontactless smart card supporting public-key infrastructure (PKI)encryption, used for digital certificates in such secureenvironments as Internet transactions and in government agencies,under a reseller agreement with Algorithmic Research, asubsidiary of Cylink Corporation (Nasdaq: CYLK). OTI, a globalprovider of contactless smart card technology and productsolutions, thus becomes the first company to offer a completesecurity solution utilizing contactless technology in both thephysical and virtual worlds. "By offering the first contactless PKI solution, OTI hasstrengthened the link between the virtual and physical world,offering all levels of security to meet customer requirements,"said Oded Bashan, President and CEO of OTI. "ProvidingAlgorithmic Research's PKI technology on OTI's field-testedcontactless smart cards further enhances our strategy to providecomplete, reliable, secure solutions." Most digital certificates are stored on a computer hard drive,vulnerable to attack by unauthorized users. IncorporatingAlgorithmic Research's PKI technology onto OTI's EYECON productplatform of contactless smart cards provides a secure, portablesolution, as the user's private key will reside on the smartcard. Users can then encrypt and sign data from any location -crucial in shared-computer environments. Encryption technology provided by Algorithmic Research adheresto PKCS#11 and CAPI standards, enabling users to secure standardMicrosoft applications such as Outlook and Explorer, as well aswork with standard PKCS-11 certificate vendors including VeriSignand Entrust. OTI's patented contactless system uses 3DES and RSAencryption to communicate between card and reader, thusmaintaining security levels throughout the encryption andtransmission process. "We are excited about working with OTI. Contactless smartcard technology opens up a whole new set of applications for AR'sPKI technology. PKI is the one technology that offers a trulydistributed security solution for the physical, as well as thevirtual worlds," said Nir Naaman, CISSP, V.P. Product Strategy ofAlgorithm Research. PKI combines software and encryption technology to protect thesecurity of communication and transactions across publicnetworks, private intranet and extranet sites, and the Internet.Digital certificates issued to individual users in a PKI systemare used to encrypt information to protect it from interceptionduring transmission and to verify the sender's identity to therecipient. Since the Electronic Signatures in Global & National CommerceAct went into effect in the United States in October 2000,digital signatures are now accepted as legally binding and havebeen implemented by the US Government. About Algorithm Research Algorithmic Research Ltd., a wholly owned subsidiary of CylinkCorporation (Nasdaq: CYLK), is a leading global supplier ofcryptographic data security solutions for financial, commercial,industrial and government applications. AR specializes inimplementing advanced PKI security solutions in large distributedcomputing environments and open networks like the Internet,allowing transparent integration of smart cards, readers andcryptographic processors that ensure high-level security for themost demanding and highly sensitive mission criticalapplications. AR products feature a Java applet client, securityenhancements and support for SSL and WAP, implementation ofhighly secure digital signatures, user ID/password, RADIUSauthentication, and more. For further information about thecompany, products and latest announcements, please visit the ARwebsite at http://www.arx.com About OTI Established in 1990, OTI (On Track Innovations) designs anddevelops contactless microprocessor-based smart card technologyto address the needs of a wide variety of markets. Applicationsdeveloped by OTI include product solutions for mass transit,parking, gas management systems, loyalty schemes, ID and securecampuses. OTI has regional offices in the US, Europe, AsiaPacific, and Africa to market and support its products. Thecompany was awarded the prestigious ESCAT Award for smart cardinnovation in both 1998 and 2000. Visit OTI on the Internet atwww.oti.co.il. ots Original Text Service: OTI Internet:http://recherche.newsaktuell.de For more information contact:Frank Schwarz Kirchhoff Consult AG Tel: +49 69 7474 8615 Mob:+49 17 5221 1108 frank.schwarz@kirchhoff.de

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