Bolsters Secure Systems Management Capability with Proven SSL Technology

Today Cryptek, Inc., a leading developer of dynamic and trusted identity and access control solutions, announced that it has signed a definitive agreement to purchase, in a cash transaction, substantially all of the assets of ION Networks, Inc. (“ION”) (OTCBB:IONN.OB), a provider of remote management and secure access products.

Gartner has projected that the SSL VPN market will grow to $471M by 2010. The ION PRIISMS management portal and proven SSL (Secure Socket Layer) technology enable service providers, equipment manufacturers, federal agencies, and enterprise companies to securely manage, monitor, and protect critical voice and data networks. Over 60,000 ION devices have been deployed worldwide in more than 35 countries. ION’s group of marquee commercial and federal customers includes over half of the world’s largest telecommunications companies.

“Besides their substantial commercial and international presence, the ION technology is an ideal fit for Cryptek’s existing federal markets,” said Bill Anderson, President and CEO of Cryptek, Inc. “While remote management requirements are growing and experienced IT talent is scarce, organizations need to support their IT initiatives with proven, flexible, and auditable technology. In addition to the products that exist today, we see considerable opportunities for combining both organizations’ expertise into future innovative security products that will deliver significant value to both Cryptek’s and ION’s customers.”

“During our evaluation we were most impressed with the positive feedback we received from ION’s largest customers,” said Brian Hajost, EVP of Cryptek. “We plan to maintain and augment ION’s operations in their current facility in New Jersey. ION’s customers can be confident in our continued support and dedication to the ION technology and their satisfaction.”

Closing of this asset purchase is expected in late December, subject to ION shareholder approval and other customary closing conditions.

About Cryptek, Inc.

Cryptek, Inc., a privately held company, is recognized as an industry leader of dynamic and trusted identity and access control solutions and TEMPEST products. With over 20 years of experience in developing and delivering security solutions, Cryptek has worked with numerous DoD & Civilian agencies. Partnered with the industries top software and hardware manufacturers, Cryptek offers customers advanced security solutions to meet their ever growing needs. Current Cryptek solutions have been awarded an EAL 4 rating from Common Criteria (CC) and numerous cryptographic module evaluation certificates as part of the National Institute of Standards and Technology (NIST) Federal Information Processing Standards Publication (FIPS PUB140). For more information, please visit the Cryptek web site at www.cryptek.com or call +1 571.434.2000.
Contacts

Cryptek, Inc.
Brian H. Hajost
Executive Vice President
571-434-2000
bhajost {at} cryptek(.)com