FOR IMMEDIATE RELEASE

VADIUM AND VERNAM S.R.L. ENTER INTO STRATEGIC SALES REPRESENTATION AGREEMENT FOR ARGENTINA AND LATIN AMERICA.

TACOMA, Washington & BUENOS AIRES, Argentina — October 31, 2007 -- Vadium Technology, Inc. a leading provider of easy to use, unbreakable data security and privacy solutions is pleased to announce entering into a strategic sales representation agreement with Vernam S.R.L. (“Vernam.”)

Under the agreement Vernam will market Vadium’s AlphaCipher Digital One-Time Pad solutions to key strategic government and multi-national corporate accounts located in Argentina and Latin America. AlphaCipher encryption solutions can be licensed by contacting Vernam directly.

“I am highly aware of the need for robust information security measures to protect our digital communication systems. With the release of faster and more powerful computers occurring on a daily basis, the threats to our financial and communication systems are rapidly growing. We are pleased to partner with Vadium Technology to help customers in Argentina counter these threats and protect their most sensitive information,” said Ricardo A. Gutierrez, President and General Manager for Vernam S.R.L.

“Vernam is a trusted advisor to corporations and key government agencies in Argentina. This status as a trusted advisor combined with Vernam’s highly technical and experienced sales staff makes Vernam the perfect direct sales representative of AlphaCipher in Argentina,” said Wolfgang Hammersmith, Chief Executive Officer of Vadium.

About Vadium Technology, Inc.
Vadium Technology provides next generation encryption solutions. Vadium’s groundbreaking technology, AlphaCipher, is a Digital One-Time Pad (D-OTP) that provides dynamic, multi-point communication structures by integrating Unbreakable Encryption, Strong Identification and Authorization with Multi-Factor Authentication into one easy to use, robust solution. AlphaCipher applications can be developed for every environment as no other solution operates as fast or puts so little burden on system overhead. AlphaCipher protects against attack regardless of resources or time applied. Vadium Technology is a privately held firm with headquarters in Tacoma Washington. For more information, please go to www.vadiumtech.com.

About Vernam S.R.L.
Vernam S.R.L. is a Vadium Technology, Inc., direct sales representative located in Buenos Aires, Argentina. Vernam was founded by Mr. Ricardo Angel Gutierrez, an internationally recognized and accredited finance consultant, currently working for multilateral credit organizations in several Latin American countries. Mr. Gutierrez was also former Secretary of the Treasury for Argentina, and past president of the ‘Banco de la Provincia de Buenos Aires’ and financial holding ‘Grupo BAPRO S.A.’. For more information, please go to www.vernam.com.ar

Vadium Contact:
Darren T. Basch
Director of Marketing
Vadium Technology, Inc.
+1-253-896-1000 x103
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Vernam Contact:
Ricardo A. Gutiérrez
Presidente y Gerente General
25 de Mayo 267 piso 5, Of. 501
C1002ABE
Buenos Aires, Argentina
+54-11-4331-5259
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