FOR IMMEDIATE RELEASE

JUNE 8, 2004

Vadium Technology Announces The Development Of AlphaCipher Mobile for the Pocket PC.

TACOMA, WA (June 8, 2004) – Vadium Technology, Inc., the developer of the AlphaCipher Encryption SystemTM is pleased to announce the development and release of its newest product, AlphaCipher MobileTM. AlphaCipher Mobile is a software encryption application that is designed to run on Personal Digital Assistants (“PDA”) running Microsoft’s Pocket PC 2003 operating system.

“AlphaCipher Mobile is the second of several products in our planned suite of secure communication applications that we are developing from our unbreakable encryption technology platform,” stated Rod Nicholls, President of Vadium Technology, Inc. “AlphaCipher Mobile has recently completed its beta testing and it will be ready for full production and release on July 1, 2004.”

The features of AlphaCipher Mobile include:

• Encryption using a digital One-Time Pad.
• Encrypts / Decrypts text, files and folders on a Pocket PC PDA.
• Encrypts / Decrypts text within Pocket Word Documents.
• Ciphertext files are fully interoperable with AlphaCipher Desktop enabled PC workstations.
• Encrypts Instant Text Messaging Sessions.
• Allows for the destruction of Plaintext, Ciphertext and Keying Material Using United States Department of Defense erasing protocols.

In addition, under a separate development project, Vadium is developing a voice encryption module for AlphaCipher Mobile that will provide for the encryption and decryption of streaming voice communications on a Pocket PC enabled cell phone using the AlphaCipher Encryption System. This module will initially use an 802.11 wireless network for transmission of the encrypted voice traffic. Over the next twelve months, Vadium expects to expand the voice transmission capabilities to include the CDMA and GSM communication channels.

In the United States, AlphaCipher Mobile can be directly licensed from Vadium, or through its exclusive reseller to the US Federal Government market and sales partner located in Washington, D.C., ACEncrypt Solutions, LLC (www.acencrypt.com). To support existing and growing international demand for AlphaCipher products, Vadium has filed for a Commodity Classification Request with the United States Department of Commerce, Bureau of Industry and Security, and we expect to export AlphaCipher Mobile for the Pocket PC to all appropriate end users located within the EU+8 countries. Once this request is processed, international customers will be able to license AlphaCipher Mobile in the United Kingdom from Vadium’s existing sales office in London. Pacific Rim qualified buyers will be able to license AlphaCipher Mobile from Vadium’s distribution partner in Tokyo, Japan, via Peercom, Inc., (www.peercom.jp).

About Vadium Technology, Inc.
Vadium Technology, Inc., (www.vadiumtech.com) located in Tacoma, Washington, is a developer of the newest generation innovative security solutions for digital communications, data transmission and robust secure information storage. Based on patent-pending technology and 20 years of research and development, Vadium’s AlphaCipher Encryption System TM, implements a true digital One-Time-Pad (“OTP”) cipher. The OTP is the only method of encrypting data where the strength of protection is immune to the mounting threats posed by breakthroughs in advanced mathematics and the ever-increasing processing power of computers. The consistently accelerating increases in computing power are proven to be a present and severe threat to all the other prevalent encryption methods. The Company’s products, combine portable, easy-to-use key management and storage systems, with a user friendly graphical user interface to deliver fast, ultra-strong protection for data stored locally or transmitted over communication networks, for small to mid-size sensitive workgroups. Vadium’s technology is suitable for government and commercial enterprise solutions where critical information demands the highest protection.

CONTACTS:
Elizabeth Hammersmith
Vice-President of Operations
Vadium Technology, Inc.
(253) 896-1000 x105
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