Advanced Encryption Technology of America, Inc. Not Served in
Civil Proceeding
Business Wire - July 21, 1998 15:10
LONG BEACH, Calif.--(BUSINESS WIRE)--July 21, 1998--Steven Fox, President of Advanced Encryption
Technology of America, Inc. (OTC/BB:AETI), announced today the clarification concerning the involvement of
AETI with the civil proceeding filed in Ontario Canada on May 5, 1998.
As reported on May 15, 1998, AETI was named as a defendant in a civil proceeding filed in Ontario Canada
on May 5, 1998. Aeti was named as a defendant in the action along with Advanced Encryption Technology of
Canada, Inc., Ken Andruski, and two other individuals. All defendants except AETI have been served with the
complaint and filed answers to its allegations. Those answers deny the existence of any contractual
relationship between Mr. Andruski and Secured Communication Canada 95, Inc. that would restrict his ability
to develop and market the encryption technology which AETI licenses from Support Thinkers, Inc.
In addition, the answers describe in detail the lack of similarity between Secured Communications' encryption
product and the technology licensed by AETI. If served in this case, AETI plans a vigorous defense based on
these facts and the lack of any jurisdiction over an American company for an action brought in an Ontario
court. However, to date, AETI has not been served and has not been required to respond to the plaintiff's
allegations.
AETI has questioned the plaintiff's motives in initiating what appears from the other defendants' answers to be
a frivolous lawsuit. Secured Communications Canada 95, Inc., the plaintiff in this action was suspended from
the Vancouver Stock Exchange in March 1998 and on May 26, 1998, the surveillance department of that
exchange recommended that shares in that company be delisted from the Exchange. On June 27, 1998, the
Toronto Star reported that Secured communications' 37 year old attorney, Doug Barnett had received an
order of suspension from the Law Society of Upper Canada. The order of suspension resulted from Mr.
Barnett's issuance of a "death list" bulletin in his offices in 1995. According to the Toronto Star report, this
"death list" was an attempt by Mr. Barnett to reciprocate against opposing attorneys whom he thought had
bad-mouthed his firm or complained to the law society about his advertising.
While he is appealing his suspension, Mr. Barnett remains the attorney of record for the plaintiff in this action
against AETI.
Aeti remains convinced that the allegations presented by Mr. Barnett on behalf of Secured Communications
have no basis in fact and have been advanced by that company and its attorney for improper motives.
Advanced Encryption Technology Inc. is a developer, manufacturer, licenser/licensee and supplier of
cryptographic software and hardware solutions to militaries, governments, and Fortune 500 customers. The
company's AccessDenied suite of products capitalizes on leading-edge smart card and software technology
which presents customers with cost-effective, general purpose security tokens, plug-in cryptographic
subsystems (APIs and libraries) and off-the-shelf cryptographic controls for user identification, network access
for authentication, digital signatures for integrity, and data encryption for confidentiality. AETI continues to be
the leader in the cryptographic field with its technology advancements.
Advanced Encryption Technology Holdings has sales offices in Mississauga, Ontario; Ottawa, Ontario; Long
Beach, California; and Amsterdam, Holland.
CONTACT: Advanced Encryption Technology of America Inc.
Steven Fox, 888/292-2384
or
Advanced Encryption Technology Holdings Inc.
Ken Andruski, 905/848-3666
or
Brokers and Analysts:
Columbia Financial Group Inc., 888/301-6271
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