CipherOptics expands international market presence; names Guy Vancollie as Managing Director for EMEA

Company also signs IPnett and DNS as partners

Raleigh, N.C. and Antwerp, Belgium (Oct. 11, 2005) - CipherOptics Inc., the leading innovator of solutions for Protecting Data in Motion™, today announced that it has named Guy Vancollie as Managing Director for Europe, Middle East and Africa. Furthermore, the company also expanded CipherOptics’ European presence today with the announcement that it has formed two additional channel partnerships with DNS, a Czech Republic-based value-added distributor specializing in IT security, and IPnett, a leading supplier of IP-based communication and security solutions based in Norway.

As managing director of EMEA, Vancollie is responsible for building CipherOptics’ market presence outside of the U.S. He brings more than 25 years experience in building international markets for such companies as AltaVista Internet Software, RSA Security and Ubizen.

Under the terms of the partnership agreements, DNS and IPnett 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 their partners and customers.

“Our customers are concerned about keeping their corporate and customer data confidential and secure,” said Stian Vilming, product manager, IPnett. “CipherOptics enables 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) 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.

“CipherOptics’ data protection gateways fill a growing need for our partners and their customers,” said Petr Hněvkovský, sales manager, security division, DNS. “With increased regulatory oversight and increased attention on protecting data in motion, we must be able to offer a cost-effective way to protect data. CipherOptics enables us to deliver proven encryption technology so our customers have peace of mind that they are compliant with regulations, and that their data is secure.”

“CipherOptics is seeing strong demand in EMEA, and throughout the world, as security-conscious customers are looking for solutions to secure and protect their corporate data,” said Ron Willis, CipherOptics president and CEO. “Europe has a fast-growing Gigabit Ethernet infrastructure, a strong understanding of the vulnerability of critical data as it travels the network, and top enterprise customers that are looking for solutions that work. With Guy at the helm, and strong partners like DNS and IPnett, we will improve data protection for our European customers.”

About DNS
The DNS Company was founded as a limited-liability company in June 1997. Since then, the company’s philosophy remained the same – to offer top technologies from worldwide producers coupled with top technological services during the pre-sale, implementation and after-sale stages to a wide range of DNS' partners. 100% of these services are associated with the architecture and implementation of technological infrastructure. Indirect sales is an underlying feature of the DNS Company. All products and services are supplied to the end users through a network of partners, not directly. Find out more at www.dns.cz

About IPnett
IPnett is a leading supplier of IP based communication and security solutions. The company is headquartered in Oslo, and generated revenues of NOK 82.5 mill (USD 12.5 mill) in 2004. IPnett represents manufacturers such as Nortel, Juniper Networks, Check Point and Blue Coat. Find out more at www.ipnett.no


About CipherOptics
CipherOptics is the leader in multi-layer encryption solutions for high performance networks. The Company provides advanced IPsec VPN and encryption solutions for wide area networks, and enables secure connectivity to private and public clouds. CipherOptics helps organizations improve security, decrease risk, and reduce the cost of compliance while enabling high performance and secure connectivity to critical infrastructures.

For more information about CipherOptics visit the company website at www.certesnetworks.com.