Effnet subsidiary Wkit Security signs new 5 year agreement for copy protection with one of Europe€s leading CD manufactu

9/27/2000 4:48 AM EST

Effnet subsidiary Wkit Security signs new 5 year agreement for copy
protection with one of Europe's leading CD manufacturers

The partnership between Wkit Security AB and the Danish CD manufacturers
SDC is strengthened by a new contract for the SecureIT copy protection
program which was signed yesterday.

The new version has been developed for SDC's updated production equipment,
which has doubled SDC's production capacity in the last year, but also to
meet the increasing demand for a reliable copy protection program.

"This was a great opportunity to enhance our core technology within the
SecureIT product and the results have been well beyond expectations",
says Lars Olov Guttke, CEO Wkit Security AB.

SDC is the largest mass producer of audio-visual media in Northern Europe
with a capacity of replicating 510,000 CDs per day.

"We've chosen the SecureIT copy protection because it is extremely
difficult to crack and is easy to implement into our production line, and
of course because our customers demand high and reliable copy protection
for their products," says Kristian Bech Andersen, Vice President,
Production and Logistics at SDC Group.

"We estimate that the five year agreement could be worth 10 M SEK per
year, for a total of 50 M SEK over the contracted time period", says Lars
Olov Guttke at Wkit Security AB.

The Product
The SecureIT copy protection software differs from its competition, mainly
because of its extreme ease of use. The manufacturer can, through the
intuitive user interface, manage and adapt the software to new products on
the fly, without the help of Wkit technicians. The software does not need
to be interweaved with the source code of the program to be protected.
This dramatically shortens the "time to market process" compared with
competing products. The software is based on instructions which registers
if any data is changed or moved using an unauthorised method. A
sophisticated encryption scheme assures that the program and its
instructions remain secret.

About SDC
SDC is one of Europe's leading multimedia duplication companies. Building
on many years of experience, SDC can provide copies in any quantity in CD,
CD-ROM, DVD, VHS and MCs. From mastering and duplication to packaging and
fulfilment SDC offers a complete turnkey solution. The present capacity is
150 million CDs, 10 million DVDs, 29 million VHS and 6 million MCs per
year. SDC is listed on the Danish stock exchange in Copenhagen.

Learn more: www.sdc-group.com

About Wkit Security
Wkit Security works with security-related services and products. The
company, which is based in Håverud in Dalsland, is divided into two
divisions. The Services Division carries out security analyses of
customers' internal and external data communications. The division also
offers training and consulting in the field of security. The Product
Division develops security-related software and has developed the SecureIT
copy protection for CD-ROMs as well as the WOCS software application,
which can retrieve deleted files.

Learn more: www.wkit.com

About Effnet

Effnet's business concept is to develop and license IP-packet processing
technology designed to resolve bottlenecks in Internet communication and
security, thereby creating maximum benefit for licensees. Today, Effnet
has offices in four locations: Stockholm, Luleå and Håverud in Sweden; and
Mountain View, California, in the U.S. Effnet Group AB is listed on
Stockholm's "Nya Marknaden" (New Market). The company has 80 employees
including those in the wholly owned subsidiary Wkit Security AB, security
product and services consulting company.

Learn more: www.effnet.com

For more information, please contact:

Lars Olov Guttke Kristian Bech Andersen
CEO Vice-President, Production & Logistics
Wkit Security AB SDC Group
+46 (0)530 44460 +45 87454502