Press Release

KoolSpan, Inc. Demonstrates Its Smart Card-Based Security System as an Embeddable Chip for OEM's of Networked Devices at DEMO Conference

KoolSpan Offers a Single System that Meets the Security Requirements of Wired Local Networks, Local Wi-Fi Networks, and Remote Users Over Wire or Wi-Fi--Normally Several Layers of Security Infrastructure

SCOTTSDALE, AZ (DEMO@15! Station #44) - February 14, 2005 KoolSpan, Inc. began demonstrations today of its Smart Card-based network security system at DEMO, the showcase for the world's most promising new and revolutionary technologies. KoolSpan secures network communications with a lock and key approach that utilizes Smart Cards to implement 2-factor authentication and 256-bit AES encryption for local wired or wireless networks, and remote users no matter if they used a wired or wireless connection. At DEMO, KoolSpan is debuting its technology as an embeddable TrustChipTM for use by OEMs in any network-aware product that requires secure communications and authentication.

KoolSpan is located at Station #44 and is a DEMO@15! featured presenter on February 14 during the 2:00 PM General Session.

"Integrating KoolSpan into your device or adding it to your network allows you to completely bypass the debilitating complexity, and cumbersome hardware requirements, normally associated with authentication, encryption, and remote access, without compromising security," said Tony Fascenda, KoolSpan's CEO. "DEMO gives KoolSpan the opportunity to show you can easily and seamlessly achieve maximum network security with minimal complication or layering of appliances."

KoolSpan TrustChips can be embedded into virtually any device--such as VoIP gear, intelligent switches, broadband modems, servers, voting terminals, DVRs, as well as other entertainment and gaming devices--to address the problems of identity verification, privacy and network interoperability. KoolSpan TrustChips do not require any change to the products they protect, nor is there a negative impact on device speed and performance.

"We are finding that OEM's are looking at our system to solve very different problems, depending on device type. For instance, in a private VoIP network, adding KoolSpan eliminates NAT traversal issues, encrypts communications, and secures the PBX--major hurdles for VoIP networks. A cable modem with embedded TrustChips would enable users to instantly and easily add security to a home Wi-Fi network and, at the same time, obtain secure local access to their home network from anywhere. The very same KoolSpan TrustChip can be used by another OEM for Digital Rights Management purposes in set top boxes and DVRs. The basic requirements for authentication and security are the same, and KoolSpan solves those issues elegantly," explained Fascenda.

All KoolSpan solutions utilize proven Smart Cards, the same cards currently used in more than a half-billion mobile phones. Implemented on both sides of the communications link, KoolSpan enables off-the-shelf Smart Cards to compute with one another during an authentication and encryption process. The result is an extremely strong security architecture which provides 256-AES encryption complete with per-packet keying and bi-directional authentication without exchanging network keys. As all this security is enabled entirely by TrustChips, and without a server infrastructure, the system is ideal for OEMs.

"KoolSpan strips away the hassles associated with securing network communications," said Chris Shipley, DEMO executive producer. "Regardless of where you are, or whether you are on a wired or wireless network, KoolSpan's sophisticated vision for network security is transformative and represents a huge leap forward. I'm pleased to showcase them at Demo@15!"

Expanded information on KoolSpan's various applications and benefits for network-aware devices can be found by visiting KoolSpan at the DEMO Station #44 or by visiting www.koolspan.com. KoolSpan's standalone SecurEdge solution is currently available, and can be used as a reference design for OEM integration, because it contains the same TrustChips that would be used in an OEM product. Complete schematics, documentation, and a design guide are also available.

About DEMO@15!

The annual DEMO conferences focus on emerging technologies and new products, which are hand-selected from across the spectrum of the technology marketplace. The DEMO conferences have earned their reputation for consistently identifying tomorrow's cutting-edge technologies, and have served as launch pad events for companies such as Palm, E*Trade, Handspring, and U.S. Robotics, helping them to secure venture funding, establish critical business relationships, and influence early adopters. Each DEMO conference features approximately 70 new companies, products and technologies. For more information on the DEMO conferences, visit www.demo.com/.

About KoolSpan

KoolSpan, Inc. develops easy-to-install and operate, network and device independent solutions for user authentication, network security and remote access for users of wired and wireless networks. KoolSpan's standards-compliant solutions leverages the tried and true, tamper-resistant Smart Card used in more than half a billion mobile phones worldwide. KoolSpan, based in North Bethesda, Maryland, is privately funded. For more information visit www.koolspan.com.

For more information: Brad Wills, Wills and Associates T. 301-767-1919 M. 301-346-7398 bwills@wills-pr.com

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