Financial Times, September 28, 1995, p.1. Rivalry for Internet Security Grows By Louise Kehoe in San Francisco The Internet rivalry between Microsoft, the world's largest software company, and Netscape Communications increased yesterday when they announced competing encryption technology intended to ensure the security of financial transactions over the global computer network. Mr James Clark chairman of Netscape, the leading supplier of browser software that enables personal computer users to "surf" the Internet, also revealed the company had turned down a move by Microsoft to take a minority stake in Netscape earlier this year, before Netscape's public offering. Microsoft's encryption technology, developed with Visa International the credit card processing organisation, is intended to solve Internet security problems which have become a serious barrier to electronic commerce. Recent incidents, including the hacking of supposedly secure Internet software developed by Netscape, have heightened concerns about sending sensitive data such as credit card numbers over the Internet. Microsoft said its Secure Transaction Technology (STT), was designed to provide a much higher level of security for credit card transactions on the Internet. Netscape's general purpose encryption system uses a 40 or 128-bit electronic "key", while STT will use 2,000-bit keys. "By Christmas of 1996 you will be able to shop on the Internet to your heart's content, without even thinking about security," said Mr Warren Dent, Microsoft director of business development for consumer systems. Although no encryption system was totally secure, Mr Dent estimated it would take "25 Cray supercomputers a year" to break the STT codes. Netscape, however, said a new version of its Navigator software, which will become available next week will provide the same level of security. Netscape's "Secure Courier" technology has been developed in conjunction with MasterCard, Visa's credit card rival. To encourage widespread adoption of STT, Microsoft and Visa are making its technical specifications available at no charge to third parties to allow them to develop software. Netscape said Microsoft is expecting to charge transaction fees each time the STT technology is used. Commercial software products incorporating STT are expected to be available by April, Microsoft said. Netscape says Secure Courier will be available sooner. [End]