Baltimore Technologies enters a multi-million dollar OEM agreement with Seiko Instruments Inc in Japan - SII

Business Wire, Nov 28, 2001

LONDON--(BUSINESS WIRE)--Nov. 28, 2001

Strategic Agreement adds Baltimore SureWare hardware security

to SII's Network Security Product Line

Baltimore Technologies (Nasdaq:BALT) (London:BLM), a global leader in e-security, today announced that they have entered into a strategic OEM agreement for Seiko Instruments Inc (SII) to sell Baltimore's SureWare range of hardware security products in Japan. Under this agreement, Baltimore has received an initial order from SII to the value of $1 million dollars. It is expected that this agreement could generate revenue of up to $6 million for Baltimore over the next two years based on SII's sales targets.

SII are recognised worldwide for their excellence in precision hardware. This OEM agreement enhances SII's leadership in delivering best of breed solutions and extends its network security portfolio, which already includes Japan's first TimeStamp Service that authenticates the official time of the Internet transaction in SEIKO(1) branded time. As part of the contract terms, SII will sell SureWare in Japan under its own brand name, SII s-Keyper. In addition, as SII is an established hardware vendor they are ideally positioned to provide customers with 24 by 7 support and services. ((1)SEIKO is trademark of SEIKO Corp.)

"This strategic agreement with Baltimore greatly enhances our network security product set, enabling us to provide customers in Japan with one of the most robust, tamper resistant e-security hardware products available today. We firmly believe there is a strong market in Japan for such technology as hardware security is an important element in any digital certificate based system for secure, authenticated e-business. Baltimore Technologies has a strong position in the Japanese market and are a market leader for Public Key Infrastructure systems and therefore were the strongest vendor for this agreement. As part of the OEM agreement, SII will invest engineering and sales and marketing time and support to promote and sell s-Keyper in Japan. In addition, we will work closely with systems integrators and PKI vendors to ensure s-Keyper is fully interoperable with all complimentary solutions," said the Vice President Mr Sigeru Yokono at Seiko Instruments Inc.

"This is one of the largest SureWare security deals we have completed and we are very excited about the potential this partnership offers," said Rob Lane, Head of Hardware Business Development at Baltimore Technologies. "Following an in-depth review of the market, SII identified Baltimore SureWare as being integral to their network security offering, enabling them to provide complete security solutions to Japanese businesses. SEIKO's strong brand name and proven expertise in hardware technology make them a perfect OEM partner for Baltimore SureWare and this alliance is a strong endorsement of our technology and leading market position."

Baltimore SureWare offers the most reliable, high-assurance security performance of its class providing enhanced cryptographic security for use in Public Key Infrastructure (PKI), SSL enabled web systems and VPN environments. It incorporates Baltimore's Advanced Configurable Crypto Environment (ACCE) which enables a wide range of secure hardware products to be developed from a common base, speeding integration and assuring a high degree of scalability. In addition, Baltimore SureWare has achieved the highest level of security accreditation for hardware security modules namely FIPS 140-1 level 4 and ITSEC E3, which allows SII to develop their own custom applications, utilizing an independently accredited, high-assurance platform.

About Seiko Instruments Inc

Founded in 1937, SII is one of the world's leading watch manufacturers of the SEIKO group. It is active in four main areas of business:

-- Wearable Electronics Devices (watches, electric dictionaries, wireless
communications equipment)

-- Industrial Systems (CAE/CAD/CAM systems, scanning probe microscopes,
analysis systems)

-- Network Components (LCD modules, CMOS-IC, micro batteries, optical-fiber
connectors)

-- e-Solutions (store automation systems, wireless credit card authorisation
systems, network security systems)

Corporate data:

Headquarters: Chiba-shi, Chiba, Japan

Established: 1937

2000 Sales: Y288.5 billion/$2.40 billion (consolidated)

Employees: 5,600

About Baltimore Technologies

Baltimore Technologies' products, services and solutions solve the fundamental security and trust needs of e-business. Baltimore's e-security technology gives companies the necessary tools to verify the identity of who they are doing business with and securely manage which resources and information users can access on open networks. Many of the world's leading organisations use Baltimore's e-security technology to conduct business more efficiently and cost effectively over the Internet and wireless networks. Baltimore also offers worldwide support for its authorisation management and public key-based authentication systems.

Baltimore's products and services are sold directly and through its worldwide partner network, Baltimore TrustedWorld. Baltimore Technologies is a public company, principally trading on London (BLM). For more information on Baltimore Technologies please visit http://www.baltimore.com