SAN FRANCISCO, CALIFORNIA, U.S.A., 1996 AUG 6 (NB) -- By Patrick McKenna. Finjan Software of Israel, which earlier said its Java security software detected what the company called a publicly available hostile Java applet at a game site on the World Wide Web, has issued a statement changing its earlier claims. In the first story on the Java applet labeled "hostile" by Finjan, Newsbytes reported early Tuesday that the Java applet in question is part of a game available on the Web and connected to America Online. Shmulik Suhami, spokesperson for Finjan, told Newsbytes at the time, "We were contacted by one of our users who detected a hostile Java applet and we have confirmed the user's experience." Newsbytes reported Sun Microsystems' JavaSoft division reply as saying, "This issue is totally and completely bogus. Security features built into Java do not allow an applet to read or write to another computer without issuing a warning message and this applet in question is not a hostile Java applet. An individual at AT&T, acting independently of the company, developed the applet. We suspect a file for the applet was placed on a second system and that is probably why Finjan's software incorrectly read it as a hostile application. Actually, this is a flaw in Finjan's software. There is no bug or hostile application at all." In its early story, Newsbytes also quoted a JavaSoft spokesperson as saying, "What is going on is that the person's applet called an audio file from a second machine and Java's security features are so strong and restrictive that an exception is raised whenever a second machine is called. Finjan's software appears to have read the call to the second machine as a hostile bug." In recanting its initial claims, Finjan released the following statement: "We want to issue a clarification on the media alert we sent out yesterday describing a potentially suspicious Java applet. We were perhaps mistaken to describe the applet discovered as a 'hostile applet,' since we did not know if it did anything damaging to a person's system. The activity of applet described was harmless. We misunderstood the extent of the security exception based on information we received. Though in principal the way the app was created could constitute a risk, in practice this was a relatively harmless breech of security, which the Java Security Manager dealt with appropriately." (19960805/Press Contact: Mary Jo Wagner, Successful Marketing Strategists, tel 510-644-3837; E-mail Address: maryjo@successful.com; or Paul Karr, KVO, 415-961-1550)