Central Intelligence Agency's venture capital firm signs licensing agreement to address problems of information security

February 14, 2001
Oakland, CA

SafeWeb, a leading Internet privacy technology company, announced that it has entered  into a licensing agreement with In-Q-Tel, a private, non-profit corporation  funded by the United States Central Intelligence Agency. Under this agreement, SafeWeb will utilize its PrivacyMatrix technology to create an Internet privacy and security product to protect confidential communications transmitted over  the Web. The agreement was entered into on November 30, 2000.

"The CIA must be at the cutting edge of information technology in order to maintain  its competitive edge and provide its people with intelligence that is both  timely and relevant," said Gilman Louie, In-Q-Tel's president and CEO. "SafeWeb's technology is an innovative approach to address problems of  information security."

SafeWeb's  patent-pending technology, dubbed PrivacyMatrix, utilizes 128-bit SSL  encryption technology to protect users against intrusions into their online  activities and communications. This technology will enable secure transmission  and receipt of material over the Internet. It will also allow users to browse  the Web anonymously, and stymie hackers and others who attempt to break into  corporate networks.
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PrivacyMatrix  is the only existing technology commercially available that meets In-Q-Tel's  security standards. "We realize that many privacy service providers now  offer encryption-based privacy solutions," said Jon Chun, co-founder and  president of SafeWeb. "We are excited that we have been selected to  develop privacy technology for In-Q-Tel, especially since it has the most  stringent privacy requirements of any Internet user."

Pure  Licensing Agreement
According  to the agreement, SafeWeb will develop privacy and security technology to  In-Q-Tel specifications and will deliver it in two phases. The agreement  between SafeWeb and In-Q-Tel is an arms-length, pure licensing agreement,  involving no technology or IP transfer. In-Q-Tel will not have any board  representation, management representation, or equity stake in SafeWeb. However,  SafeWeb has issued warrants to In-Q-Tel, which In-Q-Tel may exercise and  convert into equity in the future.

SafeWeb's core product will remain separate from any future government use of the SafeWeb technology. SafeWeb's core product is a technology that enables Internet users  to surf the Web anonymously and protect themselves against intrusions into  their online activities and communications. SafeWeb acts as an intermediary,  encrypting all data transmitted between an individual's computer and the Web  sites visited. Anyone with Internet access can use the free service by going to  the SafeWeb home page at www.safeweb.com.

SafeWeb believes that this agreement in no way sacrifices its universal mission to  protect the online privacy rights of everyone. "In the end, we realized  that we are not choosing between the government and individuals," said  Stephen Hsu, co-founder and CEO of SafeWeb. "By arming the CIA with a  powerful tool that will protect it against security risks and intrusions, we  believe that everyone benefits since use of this technology has the potential  to protect human lives. This is the ultimate validation of our  technology."

About SafeWeb
Based  in Oakland, California, SafeWeb launched its business  and its core technology in October 2000 in order to provide consumers and  businesses with a comprehensive online privacy solution that is free,  effective, and easy to use. SafeWeb is dedicated to protecting the online  privacy rights of all Internet users. Its mission is to eliminate the abuse of  Internet privacy that is rampant in the United States and throughout the  world. For more information on SafeWeb, please visit the company's press room  at www.safeweb.com.