RSA and Cylink settle

[Bruce Schneier <schneier@counterpane.com>]

Subj:  Cylink and RSA Data Security Reach Legal Settlement; Public Key
Encryption Compa
Date:  Tue, Jan 7, 1997 7:52 AM EST
From:  AOLNewsProfiles@aol.net

      REDWOOD CITY, Calif.--(BUSINESS WIRE)--Jan. 7, 1997--RSA Data
Security, Inc., a wholly-owned subsidiary of Security Dynamics
Technologies, Inc. (NASDAQ:SDTI), and Cylink Corporation
(NASDAQ:CYLK), today announced a comprehensive global settlement of
their long-standing legal disputes.
          The settlement ends all outstanding litigation between Cylink and
RSA.
          The two companies reached an amicable resolution of their
disputes.  As part of the settlement, Cylink granted to RSA all
necessary rights to Cylink's Stanford patents, and RSA granted to
Cylink a license to RSA's cryptographic software toolkits.
          For both parties, the settlement ends further prolongation of a
legal dispute that has been costly and distracting.  RSA is
fulfilling the promise made to its customers to resolve the disputes
with Cylink.  Cylink, under its new president and chief executive, is
refocusing all of its energies on providing end-to-end data security
products and solutions, and has the ability to incorporate RSA or
other technologies to meet customer requirements.
          "We are very pleased that what had so long seemed to be an
intractable problem has, within the space of 10 days, now been
resolved by the new management at Cylink," said James Bidzos,
president of RSA.  "I worked well with Fernand Sarrat while he was at
IBM, and that working relationship helped us reach this agreement so
swiftly.  This agreement turns long-time antagonists into companies
that are already exploring ways of working together constructively,
to the benefit of the industry as a whole."
          Fernand Sarrat, president and chief executive officer of Cylink,
said, "We are setting out on an aggressive new course at Cylink in
which old disputes are an unnecessary distraction.  RSA will be one
of our strategic suppliers and we anticipate focusing totally on the
needs of our customers and the enormous market opportunity before
us."

RSA Data Security, Inc.
          RSA Data Security, Inc., a wholly-owned subsidiary of Security
Dynamics Technologies, Inc. (NASDAQ: SDTI), is the world's brand
name for cryptography, with more than 75 million copies of RSA
encryption and authentication technologies installed and in use
worldwide.
          RSA technologies are part of existing and proposed standards for
the Internet and World Wide Web, IT4, ISO, ANSI, IEEE, business,
financial and electronic commerce networks around the globe.  The
company develops and markets platform-independent developer's kits
and end-user products and provides comprehensive cryptographic
consulting services.
          Founded in 1982 by the inventors of the RSA Public Key
Cryptosystem, the company is headquartered in Redwood City, Calif.

Cylink Corporation
          Cylink Corporation (NASDAQ: CYLK) is a leading worldwide supplier
of information security solutions, providing the most comprehensive
portfolio of public key cryptographic hardware and software products
available today.  Cylink's products enable secure transmissions over
local area networks (LANs), wide area networks (WANs), public packet
switched networks such as the Internet, asynchronous transfer mode
(ATM) and frame relay networks.
          Cylink, headquartered in Sunnyvale, Calif., is also the
leader in outdoor spread spectrum microwave radio communications.
Cylink's customers include national and multinational corporations,
financial institutions and government organizations.  For more
information about Cylink and its products, call the fax-on-demand
number 800/735-6614, or visit the company's Web site at
http://www.cylink.com.
          --30--mg/sf* eh
      CONTACT:
      Cylink
      Paula Contos Dunne, 408/523-5993
      pdunne@cylink.com
      or
      Edelman Worldwide
      Ina McGuinness, 415/433-5381 x 213
      imcguinn@edelman.com
      or
      Patrick Corman
      Patrick Corman, 415/326-9648
      Corman@cerfnet.com

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