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Technology Stocks : NUKO INFORMATION SYSTEMS

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To: KEN G who wrote (2258)6/24/1997 12:04:00 PM
From: KEN G   of 3509
 
All: Not Nuko specific but this should be good for the industryn and, Nortel and Sony are mentioned
KG

Tuesday June 24 8:58 AM EDT

Company Press Release

GTE demonstrates secure network transfer of motion picture
information as part of the HollyNet Initiative

NEEDHAM, Mass.--(BUSINESS WIRE)--June 24, 1997--

InfoGuard 100 Protects Studios Sensitive Intellectual

Property as It Crosses Network Prototype

GTE today announced the successful testing of a prototype secure network for use by the entertainment
production community. The tests, conducted as part of the HollyNet Initiative, involved the secure transfer of
digital voice, video and data from a Warner Bros. production studio to a simulated special effects studio.
During the transfer, two teams of network security specialists were unable to breach the network or intercept
the transmission. The information was protected as it crossed the network by GTEs InfoGuard 100, the first
commercially available asynchronous transfer mode (ATM) cell encryptor.

HollyNet is an industry-wide initiative for establishing a high-speed, broadband network capable of
providing secure, cost-effective communications between companies. HollyNet seeks to build upon and
unify the existing infrastructure in the entertainment production community, easing the migration from
computer desktop to secure network. Under the direction of the Entertainment Technology Advisory Council
(ETAC), HollyNet has already demonstrated that ATM technologies have the capacity to transmit film
production data, including voice and video.

In the network prototype test, a group of uncompressed video files and a video teleconference with white
board data was sent from Warner Bros.' studios in Burbank, Calif., to a simulated digital effects studio in
Carson, Calif. The InfoGuard 100 was used to encrypt the data before it left Warner Bros.' internal network.
During the transmission, a network security team from USC attempted to intercept the data from within
HollyNet while another team from Trident Data Systems tried to breach the network environment and tap
into the data stream. Both teams were unsuccessful. The Warner Bros. information was received and
decrypted without the loss of any information.

``It is widely recognized that the entertainment industry is at the cutting edge of technology. What is often
overlooked are the industrys security demands,'' said ETC executive director Allan Yasnyi. ``In an industry
where a pirated copy of a single film frame can cost a studio millions of dollars in lost revenues, the baseline
security requirements are comparable to those of the government. GTE, with extensive experience handling
the security needs of the U.S. government, is well positioned to provide HollyNet with an airtight solution.''

``The HollyNet network security test showed that it is now possible to create a security capability that is able
to protect sensitive assets while functioning at the high speed required to deliver the large volumes required
in the entertainment production community,'' said James L. Halsey, CIO for Warner Bros.

HollyNet is a high-speed wide area network intended to connect the computer systems and networks used
by motion picture and television production companies. Employing ATM technology to move voice, video
and data at speeds up to 622 Mbps (OC-12 rates), the network will initially provide connections to
production facilities throughout the greater Los Angeles area. Ultimately, HollyNet will expand on a global
scale, reaching production facilities regardless of location.

The HollyNet Initiative is sponsored by such industry leaders as Lucasfilm, Ltd., MCA/Universal Studios,
Sony Pictures Entertainment, Viacom/Paramount Pictures and Warner Bros. and supported by the
Entertainment Technology Center (ETC), an interdisciplinary research center based at the University of
Southern California. The network security test was performed by the ETAC in conjunction with Digital
Equipment Corp., Fore Systems, GTE, Pacific Bell, Trident Data Systems, TRW, USC and Warner Bros. In
addition to HollyNet, GTE California's entertainment team is developing communications solutions for
production facilities throughout the industry.

``HollyNet's purpose is to promote greater connectivity across the entertainment production community by
developing a communications network that meets the industrys bandwidth and security demands,'' said Rick
Umlah, vice president and general manager of GTE's Network Systems Division. ``An ATM network offers
the speed and bandwidth, while security can be provided by encrypting any information that crosses the
network. GTE will continue to work closely with the entertainment industry to ensure that these needs are
met.''

Jointly developed by GTE and Cylink Corporation, InfoGuard 100 is the first ATM cell encryptor designed for
the secure transmission of voice, image and data over public and enterprise networks. InfoGuard 100
protects sensitive data by creating a virtual private network, which can be thought of as a variable-sized
tunnel passing through an ATM connection. Capable of encrypting ATM traffic at rates up to 45 Mbps,
InfoGuard 100 takes advantage of ATM's variable bandwidth feature, allowing enterprises to realize the
substantial cost benefits of public ATM networks without compromising their information security
requirements.

InfoGuard 100 is compatible with any ATM switch that is UNI 3.1 standard compliant. The Data Encryption
Standard (DES) algorithm used is approved by the National Institute of Standards and Technology (NIST).
InfoGuard 100 uses fully automatic Diffie-Hellman public-key encryption techniques. Additional information
about InfoGuard 100 is available on the Internet at infoguard.gte.com

With revenues of more than $21 billion in 1996, GTE is one of the largest publicly held telecommunications
companies in the world. In the United States, GTE offers local and wireless service in 29 states and
long-distance service in all 50 states. GTE was the first among its peers to offer ``one-stop shopping'' for
local, long-distance and Internet access services. Outside the United States, where GTE has operated for
more than 40 years, the company serves over 6.5 million customers. GTE is also a leader in government
and defense communications systems and equipment, directories and telecommunications-based
information services, and aircraft-passenger telecommunications. Additional information about GTE can be
found on the Internet at gte.com

Cylink Corporation, headquartered in Sunnyvale, Calif., is the recognized world leader in information
security solutions, providing the most comprehensive portfolio of public-key cryptographic hardware and
software products available today. Cylink's products enable secure data transmissions over local area
networks (LANs), wide area networks (WANs), public packet switched networks such as the Internet,
asynchronous transfer mode (ATM) and frame relay networks. Cylink is also the leader in outdoor spread
spectrum microwave radio communications. Cylink's customers include national and multinational
corporations, financial institutions, and government organizations. For more information about Cylink and its
products, call the fax-on-demand number, 800-735-6614, or visit the company's Web site at
cylink.com

The Entertainment Technology Center is dedicated to technological innovation within the entertainment
production community. Sponsored by Apple Computer, ASI Entertainment, Lucasfilm, Ltd., Nortel, Pacific
Bell, Price Waterhouse LLP, Radius, Sony Pictures Entertainment, TRW, Viacom/Paramount, 3Com, Warner
Brothers and the USC School of Cinema-Television, the ETCs entertainment production and technology
professionals are recognized for defining industry standards, developing applied solutions and identifying
infrastructure needs. More information about the ETC is available on the World Wide Web at
usc.edu
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