PRESS RELEASE

Ottawa, ON and Bristol, UK - December, 2, 2008 - In response to escalating online banking and credit card fraud, CRYPTOCard, a leading developer of two-factor authentication (2FA) technology, today launches its first combined 2FA payment card. The CD-1 Credit Card Display token is designed to secure online and telephone transactions and address issues where card-not-present[1] (CNP) fraud is estimated to cost businesses in excess of £183million[2] a year.

The CD-1 uses an innovative design and manufacturing process to deliver all of the benefits of authentication technology, combined with the traditional functions of a payment card in a single credit card sized device making it ideal for financial institutions and online retail applications. Based on the premise of 2FA - something you know, such as PIN, and something you have, a credit card token - CD-1 provides users with secure one-time passwords (OTP), in order to deliver high levels of security when logging-in to their online or telephone banking account. It is currently being piloted at a number of multinational financial institutions.

Neil Hollister, CEO of CRYPTOCard, explains; "The continued growth in credit card fraud is of huge concern to our customers, particularly those in finance and retail. Figures released by APACS, for example, show a 185% increase in online banking fraud for the first six months of 2008 alone."

"CD-1 is the next generation of 2FA solutions that will help banks in a couple of ways; firstly, it will improve security for businesses and consumers making on-line or telephone financial transactions through a simple integration with a banks' channel strategy; secondly, it will mitigate concerns relating to identity fraud during card-not-present based transactions."

Rik Turner, senior financial services analyst for Datamonitor, adds; "Banks recognise the desirability of two-factor authentication and some have extended it to retail customers by issuing dedicated one-time password (OTP) generators to use in association with a PIN number. The downside of that approach, however, is that it means one more device to carry with you, and thus also one more that can be left in a taxi or have coffee spilt on it. There is clearly market opportunity for something that delivers OTP functionality, along with the features of another device such as a payment or building access card, and in a convenient form factor."

CRYPTOCard's solution is unique in combining an integrated device for consumers with an integrated software solution for banks that allows them to identify their customer each and every time they interact with a bank irrespective of which channel the customer is using - web, IVR, call centre and so forth.

Available from 1 January 2009, CD-1 is also available with CRYPTOCard's managed service - CRYPTO-MAS - meaning businesses can quickly deploy a 2FA solution in-line with a banks' on-line, telephone or business banking channel strategies with zero up-front investment, and significantly reduced support costs.

For further information please see: http://www.cryptocard.com/pressroom/productspotlight/cd%2D1

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About CRYPTOCard, www.cryptocard.com With the best token technology in the industry and the lowest total cost of ownership, CRYPTOCard offers unsurpassed value in solutions for positively identifying individuals before giving them access to applications, data and networks. Twenty years of technical achievements have won CRYPTOCard the trust of thousands of organizations in over seventy countries. CRYPTOCard's solutions reduce the risks associated with remote access and web-based processes, and increase compliance, at a price all businesses can afford. The only company to offer authentication in server-based, managed service and build-it-yourself options, CRYPTOCard provides the most flexible solutions on the market. [cid:[email protected]] Kathryn Schwab T : 613.836.7772 M : 613.858.4407 E : [email protected]