ELEMENTRIX ANNOUNCES REVOLUTIONARY ENCRYPTION FOR INTERNET AND ALL DIGITAL COMMUNICATION ANNOUNCED AT NETWORLD + INTEROP POTP Secure Mail, Secure FTP Avoid Limitations of Existing Systems NEW YORK, Sept. 29 /PRNewswire/ -- Elementrix Technologies, Inc. has announced a security technology for digital communications based on the only encryption method which is considered unbreakable. The method, POTP (Power One Time Pad) eliminates the weaknesses that allow break-ins to existing systems. Two products which feature this technology, POTP Secure Mail and POTP Secure FTP were voted the leading security products in the Best of the Show awards announced at the Networld + Interop Show in Atlanta this week. The technology is expected to be a boon to both corporate and individual users of the Internet and a major step forward for electronic commerce. The products are an automatic implementation of One Time Pad (OTP), the only encryption which is considered unbreakable. Prior to the invention of POTP, OTP was used only in extreme situations where cost and logistical constraints were not determining factors. Now POTP(TM) makes this legendary encryption readily available as a commercial software package. As with OTP, POTP creates keys that are as long as the messages they encrypt, and are used only once. But unlike OTP, which requires extensive key distribution and management, POTP(TM) creates real time: random keys are created automatically during the communication process. Therefore, users can instantly send private and sensitive e-mail over the Internet or other open systems with 'point and click security.' "Elementrix has found a logical way to generate non-algorithmic, dynamically changing keys at two separate sites without transmitting them on the line and without using parallel lines," said Dr. David Kahn, the country's leading historian of cryptography and the current visiting historian at the National Security Agency. "Elementrix is well within its rights to call this technology Power One Time Pad. I see no way of reconstructing the encryption key," he said at the press conference announcing the products. "POTP represents a paradigm shift in encryption," said Winn Schwartau, an internationally recognized expert on electronic security who also spoke at the press conference. "The fundamental technology is entirely different from any existing encryption scheme. This is the first system I've ever seen that can make the entire Internet secure for non-expert users." Schwartau also noted the importance of the system for corporate users based on its advantages in the area of key management. "The problem with systems that depend on passwords for security is that the infrastructure required to manage and distribute them is cumbersome, especially in large organizations," he said. "POTP eliminates the need for this infrastructure." POTP(TM) technology can be used to encrypt any digital communication. This can include data communications, secure telephones, wireless, satellite, cable TV and virtually any method of modern, digital communications. All POTP(TM) products are automatic and transparent to the user. The system addresses a paradox in encryption: "If the keys are truly unpredictable then there should be no way for one party to automatically re-create the same keys that are being used by the other," said Isaac Rubinstein, executive vice president of Elementrix Technologies Inc. "However, POTP's dynamically changing random keys are created by a patent pending method during the communication process itself," he said. "After the POTP(TM) between the two parties has been initialized -- only the very first time they communicate -- a One Time Pad process is executed continuously." POTP(TM) is patent pending. This unique method is fully disclosed on an individual basis only, through a non-disclosure agreement. A select group of encryption and security experts, including Kahn and Schwartau, have been fully briefed and have endorsed the new technology. POTP(TM) Secure Mail carries a very low overhead of less than 1.2%. Encryption and decryption are very fast and have virtually no effect on software performance. The system requires an IBM or compatible computer with a 386 or higher CPU and 4MB of RAM; a modem or network card; and any TCP/IP stack for Microsoft Windows. The software is Windows 3.1 and Windows 95 compatible. Professsional Encryption/Personal Privacy In the e-mail package, the entire message including attachments is encrypted in real time as it leaves the PC. Messages remain totally private while stored on the mail server, handled by an Internet provider, and/or sent over communication lines. Messages are sent in standard e-mail format with no need for a special mail server. Any standard SMTP/POP3 mail server will handle the messages. There is no need for any manual key distribution or management: no public and private keys; no master and session keys. Messages remain private and cannot be read by anyone, even system administrators. The manufacturer's suggested list price for the single user is $245. A special price of $198 will be available during the product introduction. Elementrix Technologies Elementrix Technologies Inc., based in New York City, is a subsidiary of Elementrix Technologies Ltd., based in Haifa, Israel. The parent company is a subsidiary of Elron Electronic Industries Ltd., Israel's leading advanced technology holding company. Elementrix was founded in January 1994 in order to develop commercial applications for its POTP(TM) encryption and other security products. CONTACT: Michael Meric, Fusion TMA, 212-977-4600, fax: 212-265-9684, e-mail: mmeric@elementrix.co.il, or Maia Aron, VP Marketing, Elementrix, 212-888-8879, fax: 212-935-3882, e-mail: maia@elementrix.co.il