WinMagic Awarded DOD Encryption Contract

MISSISSAUGA, ON and WASHINGTON -- WinMagicR Inc. (www.winmagic.com), the innovative leader in disk encryption, today announces that its SecureDoc full-disk encryption product has been selected to protect sensitive, unclassified data residing on laptops, other mobile computing devices, and removable storage media devices by the Office of Management and Budget, U.S. Department of Defense, and U.S. General Services

Administration. The Blanket Purchase Agreement (BPA) initiative could result in contract values exceeding $79 million.

"This prestigious contract award underscores WinMagic's long-standing position as a leading encryption supplier to the U.S. government," said Thi Nguyen-Huu, CEO for WinMagic. "I am proud to say that WinMagic was actually

selected twice - once for SecureDoc and once combined with the Rosetta USB and Hydra PC Series II hardware-based solutions from Spyrus, both of which will address the DAR security needs today and well into the future," Nguyen-Huu continued. "WinMagic is confident that Department of Defense customers will be particularly attracted to SecureDoc's unrivalled ability to seamlessly integrate with the Common Access Card and the Personal Identity Verification card at pre-boot as this makes it simple to comply with HSPD 12."

This award recognizes WinMagic's position as an innovative encryption leader. Its AES 256-bit encryption incorporated into SecureDoc holds Certificate #1 issued by the U.S. National Institute of Standards and Technology (NIST) and holds numerous accreditations, certifications, and awards including not only FIPS 140-2 Level 1, but Level 2, to the exclusion of our competitors. SecureDoc's FORTEZZA-based version is also the only disk encryption software certified by the NSA to safeguard U.S. government's

"SECRET" level data.

WinMagic Inc.