CipherOptics signs Focus-Europe to offer its high-speed data protection solutions in Europe

Raleigh, N.C. and London (May 25, 2005) - CipherOptics Inc., the leading innovator of high-speed data protection gateways that protect data in motion on IP networks, today announced it has formed a channel partnership with Focus-Europe, a specialized distributor of leading-edge communication and IT security products. The first customer to result from this partnership is a large European bank, located in the UK.

Under the terms of the partnership agreement, Focus-Europe will offer CipherOptics’ family of data protection gateways, designed to encrypt data in transit over high-speed (100 Mbps – gigabit) IP/Ethernet transport networks, to its customers, as well as its ancillary software and management products.

“We are seeing a growing demand for high-speed data protection among our customers who are concerned about issues of confidentiality and integrity,” said Gareth Jones, Managing Director of Focus-Europe. “CipherOptics’ purpose-built gateways enable us to provide the highest level of protection for data in motion, without impacting network performance.”

CipherOptics’ data protection solutions include the CipherOptics SG1002 data protection gateway for Gigabit Ethernet links, and the CipherOptics SG100 data protection gateway for 100 Mbps links. CipherOptics’ solutions protect data in motion as it travels over untrusted IP networks, including the Internet. By using CipherOptics’ TILEA™ (transparent in-line encryption architecture) architecture as its foundation, CipherOptics gateways deliver the highest level of data protection with wire-speed throughput and virtually no latency. With their bump-in-the-wire implementation, they are easy to deploy and don’t add complexity to the network.

“Focus-Europe is the ideal partner to help us meet the growing demand for our data protection solutions in Europe,” said Ron Willis, CipherOptics president and CEO. “They have a deep understanding of network security, especially the need for protecting data while it travels on the network.”

Focus Europe is a specialised distributor of leading edge communication and IT security products providing solutions from vendors who have proven technologies and industry leading capabilities. Included in the portfolio are LAN and WAN security products; email, hard disk and file encryption software; E-commerce solutions; real-time ISDN, X25 and GigaBit IP encryption hardware; and firewalls and VPNs. The company works with partners around Europe and, as a value added distributor, is committed to providing a professional and responsive level of support. For more information please visit www.focus-europe.com.

About CipherOptics

CipherOptics, the leading innovator of high-speed data protection gateways, protects data in motion as it travels over IP networks. With virtually no latency and robust industry-standard AES encryption capabilities, CipherOptics data protection gateways outperform router and firewall add-on solutions in total cost of ownership, performance, network transparency and ease of implementation.

The CipherOptics family of data protection gateways is field-proven in some of the most security-conscious networks in the world, and has received FIPS-140-2 Level 2 validation. We enable financial institutions, global enterprises and government agencies to secure alldata in motion while maintaining full network capability and performance at a very low total cost of ownership.

Privately-held CipherOptics is based in Raleigh, North Carolina. In 2004, the company closed on Series C funding from Adams Capital Management, Kodiak Venture Partners, Origin Partners L.P. and Axiom Venture Partners L.P. For more information about CipherOptics visit the company website at www.cipheroptics.com.