FOR IMMEDIATE RELEASE

Vadium Technology, Inc. announces world’s first scalable Internet security solution based on the Digital One-Time Pad

Vadium’s new AlphaCipher iAptus provides the strongest encryption-based Identification, Authentication and Authorization for Web transactions, from origination to storage in the database.

TACOMA, WA – August 1, 2007. Vadium Technology, Inc., a leading provider of easy to
use, unbreakable data encryption solutions announced today the development of AlphaCipher
iAptus, the world’s first scalable Internet security solution built around the unbreakable Digital
One-Time Pad Cipher. AlphaCipher iAptus is an end-to-end encryption solution that can be used
to protect all tagged data from a client that is sent to a host as well as the information returned
from the server to the browser. AlphaCipher iAptus provides an exacting measure of trust
between any and all client-server applications using common internet protocols.

AlphaCipher iAptus brings the strength of the Digital One-Time Pad to web-based multi-factor
authentication. The technology also extends to the full range of internet transactions, including
submission to and storage of information in a database. AlphaCipher iAptus protects the user’s
name and password which are encrypted with a non-repeating Digital OTP key. The host accepts
the user’s identity because no other user can have that same set of random bytes. Only the real
host will have the right key to decrypt the user’s name and password. This enables the user to
trust the site as genuine. AlphaCipher iAptus defends against the most common web based
authentication attacks including sniffing, phishing, spoofing, keystroke-logging and guessing.
AlphaCipher iAptus will be available to customers in Q4 of 2007.

“We have requests from our customers that identity management and bi-directional authentication
are as important to them as part of a complete security and privacy solution as the strength of the
encryption itself,” said Wolfgang Hammersmith, Vadium’s CEO. “With AlphaCipher iAptus,
Vadium extends the strength of its fast Digital One-Time Pad technology to cover the challenges
of identity management and authentication.”

The key for AlphaCipher iAptus can reside on portable storage such as USB flash drives, or can
reside in the main memory of any device. Each configuration meets a different business need
depending on the customer’s security requirements. Keeping the key on portable storage
provides a layer of protection by through separation from online devices while allowing the user
to interact with the secure application from any internet client. When the key is stored in the
main memory, users can only interact with their applications from that specific device.

AlphaCipher iAptus is designed for critical web-based transaction and reporting applications.
Examples include point-of-sale systems, healthcare information reporting, and banking cash
management operations.

AlphaCipher iAptus v 1.5 01AUG07

About Vadium Technology
Vadium Technology is a leading provider of portable, easy to use, unbreakable encryption
solutions that deliver the world’s highest level of data security and privacy. Vadium’s flagship
product suite, AlphaCipher, is designed for governments, corporations and organizations that
require conditional and unconditional data security and privacy. Founded in 2001, Vadium
Technology is a privately held firm with headquarters in Tacoma, Washington and offices in
several different countries. For more information, please go to www.vadiumtech.com.

Company Contact:
Darren T. Basch
Vadium Technology, Inc.
253-896-1000
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