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KYBERPASS Lands $13 Million in Latest Financing Round

Company Builds Management Team With the Addition of Three New Senior Executives

Ottawa, ON, and Bedford, MA, June 6, 2000 - Kyberpass Corporation, a leading provider of e-security software, announced today that it has secured $CDN 13 million in its second round of venture capital financing. This latest round of financing and strong additions to the company’s management team, continue to build on Kyberpass’ leadership position in the exploding e-security market.

The investment was led by NB Capital Partners of Toronto and Montreal and includes Kyberpass’ initial venture investor, McLean Watson of Toronto, as well as Covington Capital Corporation of Toronto. The capital will be used to support the rapid expansion of Kyberpass’ global sales and marketing activities—continuing the company’s strategy to take advantage of its market potential in the growing e-security market.

“The market for e-business security applications is on fire,” said Ron Walker, President and CEO of Kyberpass Corporation. “Kyberpass is the only company that can implement an e-security solution in a matter of hours—a process that typically takes months or even years. We are ideally positioned to become a strategic business partner to the Fortune 500 and government agencies as they race to bring new services and transactions to the web.”

“The e-security industry is poised for significant growth and Kyberpass is well-positioned to take advantage of it,” said John Eckert, Managing Partner, McLean Watson. “With its marquis customer base and unique offering, Kyberpass is the perfect combination of the right technology, the right market, and the right people. We feel it is a world-class technology company and a tremendous business opportunity.”

“NB Capital Partners sees a huge potential for growth in this market,” said Michael Ruscetta, Partner, NB Capital Partners. “We’ve looked at a number of companies in the e-security market, but Kyberpass stood out. Its superior functionality, combined with some impressive customer wins and solid strategic partnerships, make Kyberpass an exciting investment choice.”

“Covington is impressed with the caliber of Kyberpass’ senior management team,” said Grant Brown, Managing Partner, Covington Capital Corporation. “We like what Kyberpass has to offer—quality management combined with the potential of owning a key piece of the Internet infrastructure.”

Earlier this year, Kyberpass appointed Ken Killin as Executive Vice President of Business Development and Finance. Today the company also announced additional appointments of three new executives to its senior management team.

Strategic Market Development
John Purdon joins Kyberpass as Senior Vice President of Strategic Market Development. With more than 25 years of experience, Mr. Purdon has specialized in international markets, leading marketing initiatives in the United States, Europe, South America and the Far East. During his 12 years at Cognos, he held several positions, including Vice President, Americas/Pacific. In 1996, Mr. Purdon joined JetForm as Vice President of Marketing and was responsible for setting the strategic direction for its workflow product, InTempo. Most recently, he served as President of OLAP@Work, a startup company that was recently acquired by Paris-based Business Objects.

Marketing
As Vice President of Marketing, Robert Lendvai brings a wealth of experience to his role including more than 13 years of sales, marketing and corporate communications in the high-tech industry. Prior to joining Kyberpass, Robert has held senior marketing management positions at three of Canada’s publicly traded software companies—Corel, Cognos and Jetform. Most recently Robert, was Vice President of Marketing for OLAP@Work. The Ottawa Business Journal recently recognized Robert as one of “Forty under 40” young business leaders to watch.

Operations
David Watts joins Kyberpass as Chief Operating Officer. With over twenty years information technology facilities management and operations consulting experience, Mr. Watts brings invaluable knowledge to his new role at Kyberpass. Mr. Watts was both a founding and managing partner of The Devon Group Ltd., an Ottawa based information technology consulting firm.

About Kyberpass Corporation
Kyberpass delivers a new generation of security software solutions for e-business and e-government. With more than 4 million licensed users around the world, its award-winning security solution seamlessly allows any application to take advantage of the full power of Public Key Infrastructure (PKI), while automatically implementing customers’ unique security policies and dramatically simplifying administration. Kyberpass enables the implementation of a total security solution in a matter of hours, rather than months or years. Kyberpass supports all major PKIs and provides the most flexible e-security infrastructure available on the market today.

About NB Capital Partners
NB Capital Partners Inc. is a merchant bank affiliated with National Bank of Canada and its securities dealer subsidiary, National Bank Financial. NB Capital Partners focuses on providing equity and mezzanine growth capital to leading companies in a variety of industries across North America.

About McLean Watson
McLean Watson is Canada’s leading private venture capital investor in information technology. Based in Toronto, Canada, McLean Watson also has offices in Ottawa. It manages over $165 million (Canadian). Investors in McLean Watsons’ funds include several of Canada’s largest pension funds and money managers, as well as leading members of the technology and financial services industries.

About Covington Capital Corporation
Covington Capital Corporation is a leading venture capital firm, managing over $320 million on behalf of Canadian investors. Covington’s investment managers have over 50 years of combined investment experience and focus on growth and maximization of shareholder value through diversification.

For more information on KyberPASS, please contact:

Jessica Gould
High Road Communications
Corporation
(613) 236-0909 x303
jgould@highroad.com

Robert Lendvai
VP, Marketing
Kyberpass Corporation
613.727.6556 x303
rlendvai@kyberpass.com