Datakey Smart Card Technology Deployed by U.S. Government Agency

15,000 employees will lock-down their laptops with Datakey smart cards to secure sensitive documents

MINNEAPOLIS, Sept. 30, 2002 – Datakey Inc. (Nasdaq: DKEY;, a trusted developer of smart card solutions for securing e-business, today announced that a U.S. government Homeland Security agency has placed an order for 6,500 cryptographic smart cards to secure sensitive data stored on laptop computers. The order represents an expansion of an earlier order placed by the agency in February. Datakey smart cards and CIP software are planned for deployment to 15,000 users.

Agency employees are using disk encryption and access control software together with their Datakey smart cards to lock-down sensitive data and prevent unauthorized access to their laptops, protecting documents and reports. To boot up their laptops or read encrypted data on the hard drive, employees must posses their Datakey smart card loaded with their unique digital credentials and personalized with a pass phrase that only they know – enabling a higher level of privacy and assurance for data.

In the future, the agency also plans to implement PKI together with Datakey CIP client software, which will allow users to take advantage of their smart cards within the agency’s PKI environment for a range of network and desktop applications like secure e-mail and secure VPN access.

About Datakey Inc.
Datakey Inc. focuses on delivering smart card-based solutions that assure identity and protect the integrity and privacy of data shared over public and private networks. Datakey cryptographic smart cards, client software, desktop applications and card management products enable organizations to reliably identify users and open doors in both the physical and online worlds.

Customers and partners alike rely on Datakey technology in a full range of enterprise applications, including password management, host authentication, Windows log-on, VPN access, web authorization, desktop security, corporate badge and building access, biometric integration, public key encryption, digital certificates and digital signatures.

Forward-Looking Statements
The expectation that Datakey smart cards and CIP software are planned for deployment to 15,000 users agency-wide is a forward-looking statement subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. In order to achieve deployment to 15,000 users, Datakey must continue to offer information security products as good or better from a technological perspective than those of competitors and at competitive prices.

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