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WinMagic, Spyrus Partner

MISSISSAUGA, Ontario and SAN JOSE, Calif. -- WinMagic®
Inc. (www.winmagic.com) and Spyrus, Inc. (www.spyrus.com), the innovative
leaders in disk and file encryption, have teamed to deliver the only
software and hardware-based encryption solution selected by the U.S.
Department of Defense's "Data at Rest" (DAR) program to secure all data on
mobile computer programs and removable storage media. Teaming to secure the

award of the Blanket Purchase Agreement (BPA) - which could result in
contract values exceeding $79 million with the Office of Management and
Budget, U.S. Department of Defense, and U.S. General Services
Administration - underscores both companies' long-term commitment to
furthering data security via the strongest security standards and developer
collaboration.

By incorporating WinMagic's SecureDoc software into its Talisman/DS Data
Security Suite, Spyrus can now offer high-strength hardware file encryption
and efficient software disk encryption to provide a scalable, multi-layered
security solution to protect the confidentiality and integrity of data at
rest and data in transit. Talisman/DS is unique in supporting the entire
set of high-strength Suite B cryptographic algorithms, including the default

settings of AES-256, SHA-384 and ECC P-384, as well as all of the legacy
algorithms (RSA, triple-DES, and SHA-1).

"Both WinMagic and Spyrus believe that data security will only advance if
companies work together to create standards and interoperable solutions, and

the teamwork responsible for this unique offering underscores that fact,"
said Thi Nguyen-Huu, CEO for WinMagic. "WinMagic is completely committed to

vendor collaboration and its SecureDoc software is the only technology
incorporated within two solutions selected by DAR," Nguyen-Huu continued.
"WinMagic has provided innovative encryption solutions to the U.S.
government for years, and SecureDoc is still the only encryption solution
that enables DoD customers to seamlessly integrate full-disk encryption with

the Common Access Card and the Personal Identity Verification card at
pre-boot - making it simple to comply with HSPD 12."

WinMagic Inc.