PRESS RELEASE

San Jose, California – June 21, 2011 – SPYRUS today announced that the Secure Pocket Drive Remote Access Edition, which has seen tremendous success and strong demand in the public sector for the past year, is now available for sale to businesses and commercial markets worldwide.

Designed for Internet and cloud computing applications, Secure Pocket Drive is the first and only licensed device that boots Microsoft’s mobile, flagship operating system, Windows Embedded Standard 7, from an encrypting USB flash drive. The read-only device can be booted on almost any Windows compatible PC to create a user-friendly experience in trusted computing. The Secure Pocket Drive only uses the RAM, keyboard, mouse, and monitor on the host computer. Secure Pocket Drive prevents cross-contamination and the transfer of malware from the host PC by not mounting the internal hard drive.

In addition to the built-in browser and Citrix' XenApp™ client, it is easy to add virtual private network (VPN) software to access internal corporate applications. No matter how you use Secure Pocket Drive, it presents a safe environment both for the user and the network to which it is connected.

Multiple SPYRUS patents are used to lock the Microsoft (Nasdaq: MSFT) Windows OS to the device and provide cryptographic protection against modification to the boot loader and the operating system. The patented methods enforce on-the-fly integrity validation to enable fast and secure boot-up and enhance the user experience without suffering the performance or vulnerability penalties incurred by other bootable products. The patented Secure Pocket Drive was designed from the ground up with strong FIPS 140-2 Level 3 hardware, US Government-approved next-generation cryptographic algorithms, and extensive built-in self-checking functionality to protect the device, the operating system, and the user.

“This delivers on Microsoft’s vision of a Trusted Stack, and makes the benefits of a Trusted Stack available to Enterprise customers,” said David Aucsmith, Sr. Director, Microsoft Institute for Advanced Technology in Government. “A truly trusted mobile computing environment providing security of data, identity, and operating system is now available to enterprises large and small, and not just to government agencies.”

Unlike a bootable CD, authorized administrators can use Microsoft System Center Configuration Manager (SCCM) and Active Directory policy settings to install and update software on Secure Pocket Drive with no additional training. Secure Pocket Drive can also be disabled remotely through the SPYRUS Enterprise Management System (SEMS).

“We were proud to introduce our award-winning endpoint security solution to government users in 2010,” said Tom Dickens, COO of SPYRUS, “and now we can extend this same security to the private sector worldwide. Everyone from road warriors to teleworkers are evaluating deployment of the Secure Pocket Drive for secure remote access to network resources rather than issuing a laptop or using a home PC after their kids downloaded unknown malware. Just boot directly from the Secure Pocket Drive for worry-free secure computing.”

Secure Pocket Drive uses the same on-board hardware security infrastructure that is built into the SPYRUS Hydra Privacy Card' family, including AES CBC, ECDH, ECDSA, ECC P-384, and SHA-384, which together make up the National Security Agency’s Suite B cryptography, part of its cryptographic modernization program. Sector-based full disk encryption is based on XTS-AES 256 encryption (NIST SP800-38E).

To watch videos of Secure Pocket Drive in action or for information on ordering Secure Pocket Drive for immediate evaluation or purchase, see www.spyrus.com/products/secure_pocket_drive.asp

About SPYRUS, Inc.

SPYRUS holds patents in the U.S. and abroad that enable solutions for secure authentication, secure communication, and full disk encryption, as well as patents relating to data protection and rights management for digital content. To prevent the insertion of untrusted components, Secured by SPYRUS™ security technology is proudly designed, engineered, and manufactured in the USA to meet FIPS 140-2 Level 3 standards. SPYRUS is headquartered in San Jose, California. See www.spyrus.com for more information.

Secure Pocket Drive is protected by U.S. Patents 7,757,100, 7,380,140, 6,088,802, and 6,981,149, with other patents pending. SPYRUS, the SPYRUS logo, Secured by SPYRUS, Hydra Privacy Card, Hydra PC, Secure Pocket Drive, and Security to the Edge are either registered trademarks or trademarks of SPYRUS, Inc., in the U.S. and/or other jurisdictions. All other company, organization, and product names are trademarks of their respective organizations.