SPYRUS, McAfee Team On New USB Encryption Drives

PRESS RELEASE

San Jose, CA " February 23, 2009 " SPYRUS, Inc. today announced Hydra PC Virus Protected (ViP) USB encryption drives incorporating antivirus protection from McAfee' Scan Engine technology. Combining McAfee antivirus scanning with SPYRUS hardware-based file encryption provides a USB drive solution powerful enough to protect host computers, peripheral flash drives and removable memory media from viruses, malware, spyware and adware.

Hydra PC USB encryption drives with McAfee advanced antivirus security provides both on-demand and on-access identification and detection of malware and viruses that are inherent in most computer network environments. Hydra PC encryption drives guard the integrity of the encrypted data and create a secure channel to preclude key-logger and piggyback intercept attacks from "spoofing" the Hydra PC drive.

SPYRUS uniquely employs its licensing attribute certificate patented technology (U.S. Pat. Nos. 6,904,523, 7,356,692; Australia Pat. No. 776027) to enforce specific terms and policies of the McAfee antivirus software user license. The enforcement data, the licensing data and the data limiting the use of the software to the specific set of terms are cryptographically bound to both the scan engine and the Hydra PC USB drive using a licensing attribute certificate and military-grade Suite B encryption.

"We are pleased to work with SPYRUS to help further protect our customers in the federal government and enterprise sectors," said David Scholtz, senior vice president of Strategic Alliance and OEM Sales at McAfee. "McAfee's antivirus technology, integrated with SPYRUS file encryption, keeps critical information protected from the most powerful tools employed by hackers."

Hydra PC products scan for viruses, encrypt and digitally sign each file, maintain absolute data integrity, and create audit logs to provide a trusted malware-free antivirus solution for file storage and communications. Hydra PC encrypting drives are designed to protect classified data with the strength of FIPS 140-2 Level 3 security. They are the only secure USB drives to offer the full set of Suite B cryptographic algorithms, including 128-bit, 192-bit and 256-bit AES encryption and public key algorithms based on elliptic curve cryptography. Enterprise security management software from SPYRUS enables IT administrators to centrally manage and configure Hydra PC ViP antivirus policies to automatically update McAfee virus definition libraries (DATs) upon network or internet connection to the enterprise server, to select the update source from private internal or public network servers and to block data transfers or warn the user if DATs are not updated for a policy-designated period of time. Policies offer administrative antivirus options for event logging, file repair and file-blocking or deletion.

"Hydra PC was specifically designed to protect DoD data and is the only hardware device approved under the US DoD ESI/GSA SmartBUY Data At Rest (DAR) program for safe use in DoD and civilian networks," said Tom Dickens, Chief Operating Officer of SPYRUS. "McAfee's leadership positions as a security advisor to the federal government and antivirus technology supplier to military and enterprise customers worldwide made our partnership decision easy. Combining our proven Hydra PC product line, the world's strongest and most powerful hardware-based USB encryption devices, with the McAfee antivirus technology provides the most secure solution to our customers."

About SPYRUS SPYRUS, Inc., a Microsoft Managed ISV Partner, has pioneered portable security products and solutions for the information security market since its inception in 1992. Our primary product lines of LYNKS Hardware Security Modules, Rosetta Series II smart cards and USB security devices, Hydra Privacy Card' Series II encryption and mass storage, Talisman/DS' Data Security Suite, and identity management products (Signal Identity Manager and SPYRUS PKI) meet customer needs for high-assurance security. Our mission is to set the standard for the new era of multinational information sharing and long-term data protection. SPYRUS, Inc. is headquartered in San Jose, CA. See www.spyrus.com for further information.