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Cipheroptics Reports Strong Momentum for Data Protection Partner Program

-- Eight New Partners Join Program, Bring Compliance Grade Safe Passage Solutions to Global Customer Base --

Raleigh, NC, October 31, 2006 As a testament to the growing market demand for comprehensive data protection solutions, CipherOptics Inc., the leading innovator of Compliance-Grade™ network security solutions, has recently added eight new partners to its Data Protection Partner Program since launching the program just six months ago. These new partners join an impressive roster of existing partners that are already leveraging their partnership with CipherOptics in order to grow their business and bring scalable data protection solutions to their customers.

With traction in North America and abroad, new partners benefiting from the market growth opportunities that are maximized by CipherOptics Data Protection Partner Program include

All Points Logistics, CyberDefenses, GBprotect, KoSistem Bilgi ve Iletisim Hizmetleri A.S., Polygon, CAC Network Services, TechGuard Security and NWN Corporation.

"Compliance is driving the need to protect and encrypt data, and doing it without impacting network design and performance is a critical requirement for our customers," said Mel Holstrom, president and CEO, GBprotect, a location-based reseller and CipherOptics Data Protection Program Partner. "By providing us with the resources we need to offer our joint customers solutions that lower their installation, management and operational costs, CipherOptics partner program offers GBprotect a true competitive advantage, helping us to target new revenue opportunities and grow our business."

These new CipherOptics partners join a top notch, worldwide partner base of select CipherOptics partners that are already benefiting from CipherOptics' innovative approach to protecting data in motion, including Business Partner Solutions, DNS, EMC, Focus Europe, IPnett, McData, Promptus and US Access.

"CipherOptics has solved the challenge of deploying encryption solutions with an effective policy and key management approach that no other vendor comes close to in the market," said Katherine Bluma, president and CEO, Business Partner Solutions, a location-based reseller and CipherOptics Data Protection Program Partner. "As a long time partner of CipherOptics, I have benefited first hand from the resources they provide to help me better serve my customers and strengthen my organization's portfolio in the security market."

The rapid success of the program is a reflection of CipherOptics' dedication to customer satisfaction and acknowledgement that building partnerships with key vendors, resellers and system integrators is the best way to ensure customers have access to solutions that provide a safe passage for data in motion within their budgetary and manageability requirements.

CipherOptics Data Protection Partner Program ensures that CipherOptics' partners are armed with the necessary tools to effectively sell CipherOptics solutions to their customers, including unparalleled network and security engineering support, kick-start marketing funds, collateral material and product training, as well as the opportunity to partner with CipherOptics to maximize market opportunities around the world with leads, sales-closure help and market development funds. CipherOptics also provides a high level of support and real-world white papers, working hand-in-hand with partners to address the challenges of complex implementations. For Select and Elite partners that qualify, CipherOptics offers the additional opportunity for them to leverage assessment and audit methodologies to improve the solution they deliver to their customers. CipherOptics brings value to partners by helping them deliver security services as well as to help them get their foot in the door or capture new business.

"Since launching our Partner Program, partners are telling us that they now have the ability to make a measurable impact with their customers that gives them a competitive advantage over run of the mill VARs," said Chris Metaxas, senior vice president of worldwide sales at CipherOptics. "The momentum we have created allows us to selectively and exclusively expand our partner base with the confidence of providing an opportunity for new partners to make a significant, highly profitable difference in the markets and for the customers they serve. I am very excited about the opportunity our partners have around the growth we are experiencing and the support they will receive to embrace this opportunity."

About CipherOptics
CipherOptics is the leading innovator of Compliance-Grade network security solutions, providing transparent security overlays that solve the fundamental problems of large-scale data protection. Trusted by the most security conscious enterprises and government agencies in the world, CipherOptics provides a Safe Passage for data in motion with the lowest overall installation, management and operational costs.