AT&T Press Release on Clipper

[Dave Banisar <banisar@washofc.cpsr.org>]

Here's AT&T's announcement on the Clipper.


 AT&T TO INCORPORATE NEW 'CLIPPER' CHIP INTO SECURE COMMUNICATIONS
PRODUCT LINE

GREENSBORO, N.C., April 16


    AT&T (NYSE: T) said today it is moving to improve the security and privacy
of telephone communications by incorporating a just-announced new U.S.
government technology for voice  encryption  into its secure communications
product line.

   AT&T will use the Clipper chip, announced today by President Clinton as a 
new technology for voice  encryption,  in all of its secure telephone products
except those specially designed for government classified customers.  The
Commerce Department has announced a six-month timetable for the final
certification of Clipper.

   "AT&T is pleased to be the first company to publicly commit to adoption of
the Clipper chip," said Ed Hickey, AT&T vice president, Secure Communications
Systems.  "We believe it will give our customers far greater protection in
defeating hackers or eavesdroppers attempting to intercept a call.

   "And now all commercially available AT&T voice  encryption  products will 
be compatible with each other, a major step forward in bringing secure
communications capabilities to the business community."

   In standardizing AT&T voice  encryption  products on the Clipper chip, AT&T
will include the algorithm in the Telephone Security Device as well as in the
Secure Voice/Data Terminal.

   The AT&T Telephone Security Device is a compact, lightweight unit that 
brings advance  encryption  technology to conventional land-line and cellular
telephones.  It provides a powerful, convenient and reliable way to protect 
the most sensitive telephone conversations.

   The device works with a conventional land-line or transportable/mobile
cellular phone.  It turns the phone's signal into a digital stream of 
encrypted information that is decrypted by a Telephone Security Device 
attached to the phone at the receiving end of the call.

   The AT&T Telephone Security Device connects easily to desk telephones or
tranportable or mobile phones.  It weighs 1.5 pounds and is 7 inches long, 4.5
inches wide and 1.5 inches high.  And it's as easy to use as it is portable.

   The AT&T Secure Voice/Data Terminals are desktop telephones that provide
 encryption  for both telephone calls and data transmissions.

   These AT&T secure communications products use an enhanced voice  
encryption  technique that provides very high voice quality.  This technology 
allows calls placed with these products to approach the voice quality of 
normal calls.

   To further enhance interoperability, AT&T will consider licensing to other
manufacturers its enabling technologies for interoperability. Interoperability
of  encryption  devices requires common technology beyond the use of a common
 encryption  algorithm, specifically common methods of digital voice encoding
and signaling.

   AT&T has already performed integration tests with Clipper chips 
manufactured by the government's supplier, Mykotronx Inc., of Torrence, 
Calif., and is preparing to integrate the chip into the manufacturing of its 
secure products.   AT&T's Clipper-equipped telephone security devices will be 
available to customers by the end of the second quarter.

    The federal government intends to adopt the Clipper chip as the
standard for voice  encryption  to help protect proprietary information,
protect the privacy of personal phone conversations and prevent
unauthorized release of data transmitted electonically.  At the same
time, use of the Clipper chip will preserve the ability of federal,
state and local law enforcement agencies to intercept lawfully the phone
conversations of criminals.
    "Adoption of Clipper will support both the government's efforts to
protect the public and the public's right to privacy," Hickey said.
    AT&T Secure Communication Systems provides products to protect
voice, data, fax, cellular and video communications.  It also engineers
and integrates secure communications applications.  Its customers
include the governments of the United States and other nations as well
as major corporations around the world.
    AT&T Secure Communications Systems is headquartered in Greensboro.
    For more information about the AT&T Telephone Security Device 3600
and other AT&T Secure Communications Products, call David Arneke at
919-279-7680.
     CONTACT: David Arneke of AT&T Secure Communications Systems, 919-279-
7680,or after hours, 919-273-5687, or Herb Linnen of AT&T Media Relations,
202-457-3933, or after hours, 202-333-9162