Crypto iButton Validated as a Postal Security Device; U.S. Postal Service Now Accepts Computer-Made Stamps as Postage

Business Wire, August 9, 1999

DALLAS--(BUSINESS WIRE)--Aug. 9, 1999--

Fast Facts:

-- USPS revenues in 1998 were $60 billion

-- 1.7 million existing postage meters comprise 30% of the USPS's

mail volume

-- Postage meters account for more than $21.5 billion in revenue

-- 44.8% of U.S. households--more than 45 million--have a PC

-- There are an estimated 7.2 million SOHOs (Small Office, Home

Office) in the U.S.

-- Dallas Semiconductor has shipped 190 million 1-Wire(TM) devices

to date, 30 million of them as iButtons

Dallas Semiconductor (NYSE:DS) announced today that a NIST-approved (National Institute of Standards and Technology) laboratory has successfully completed testing of the cryptographic iButton(TM), a sophisticated microchip armored in a 16mm stainless steel case.

This testing, sanctioned by the U.S. Department of commerce, was a pre-requisite for the iButton's role in the nationwide issuance of electronic postage generated by home computers and printers. Referring to its new stamps as Information Based Indicia (http://www.usps.gov/ibip/), the United States Postal Service (USPS) approved for commercial availability the Internet-based systems by which an individual can conveniently print stamps at home using a PC.

According to Michael Bolan, vice president of product development, "Since a personal computer by itself cannot be trusted, the USPS has defined a secure computer, called a Postal Security Device (PSD), as a critical component of this new streamlined method of generating postage for envelopes and packages. The iButton serves as a physically secure coprocessor for a PC to provide safe, long-term storage of 1024-bit private keys, a tamper-resistant real time clock for true time, a random number generator, and computational resources to do the excruciatingly difficult math required by public key cryptography. After five years of intense development, Dallas Semiconductor has completed the independent laboratory testing of a cryptographic iButton that validates its compliance to the PSD specifications."

In addition to requiring secure computation resources, the USPS specifications for the PSD call for validation by laboratory testing under the direction of NIST. The Dallas Semiconductor crypto iButton has passed the Federal Information Processing Systems certifications for FIPS 140-1 levels 1, 2, and 3, as well as physical security of level 4 (http://csrc.nist.gov/cryptval). The iButton has also been scrutinized for side-channel attacks, sometimes referred to as differential power analysis, that have proved problematic for smart cards.

The iButton can connect to any PC with a Blue Dot receptor cabled to a serial or parallel port adapter (www.iButton.com/ibuttons/blue_dot.html). Dallas Semiconductor will deliver a USB adapter for use with Microsoft's release of Windows 2000 to take advantage of the new plug and play capabilities of the PC, as well as to ensure interoperability across platforms -- Sun, Apple and SGI, etc.

Product enhancements are underway to FIPS 140-1-validate a Java(TM)-powered version of the crypto iButton for delivery by end of 1999. By running Java, the iButton can be revised after issuance for additional services not defined at the time of issuance. These wearable Java computers are durable enough to be worn on a ring, key fob, wristwatch, medical bracelet, dog tag or wallet. The Java-powered iButton supports PKI and can perform 1024-bit RSA encryption in less than one second . Its memory has sufficient capacity to hold an individual's whole repertoire of credentials for the network economy. The large 134Kbyte memory is a safe place to keep static passwords, dynamic passwords, private keys, certificates, a user profile, medical records, and pictures.

Bolan said, "Under its iButton brand, Dallas has shipped over 30 million of these portable data carriers to a wide range of applications from the labeling of printer cartridges to physical access control keys for Federal Reserve Bank vaults. Now the crypto iButton has made a high-water mark for computer network security. The USPS is the first widespread use of the Internet to offer "wired" electronic money to individuals, in this case the monetary units representing postage. With its new electronic stamps, the USPS emerges as a leader in adapting the Web for the greater convenience of its customers. Postal authorities from all over the world are watching this deployment, along with companies interested in the next phase of e-commerce."

Dallas Semiconductor (NYSE:DS) designs, manufactures and markets CMOS chips and chip-based subsystems. In its 15-year history, the company has sold its products to more than 15,000 customers worldwide. Major markets include Original Equipment Manufacturers (OEMs) in personal computers, telecommunications, office equipment, instrumentation, factory automation, medical equipment and mainframe computers. Chips and subsystems are sold through a direct sales force, distributors and manufacturers' representatives worldwide. The iButton brand product is directly available from www.iButton.com or authorized software developers and service providers worldwide. The company's Web site address is www.dalsemi.com. Java is a registered trademark of Sun Microsystems. iButton is a registered trademark of Dallas Semiconductor.