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Swedes Love Online Shopping

V-ONE Corporation (Nasdaq: VONE) reported today that more than 90,000 people have signed up with the Swedish postal service in the last six months to use V-ONE’s SmartGATE technology for secure online shopping. Sweden Post and V-ONE were brought together by Internet SmartWare, V-ONE’s master reseller in Europe.

After a lengthy comparison of security solutions, Sweden Post concluded that SmartGATE offered security and flexibility not available in any other product. Sweden Post uses browser software from Netscape Communications Corporation and has been one of Netscape’s largest European customers.

The rapid growth of the Sweden Post’s Internet service — currently more than new 2,000 customers each week — is making the service, TORGET, one of the largest electronic commerce networks in the world. SmartGATE allows secure coordination of the transfer of funds between shoppers and TORGET’s business partners.

“With SmartGATE, we think we’ve found the technology that finally allows the Internet to be exploited as a mass marketing channel, ” said Bengt Norin, Sweden Post’s vice president for business development. “The ability to shop online, knowing your credit card account is safe, appears to be what people were waiting for. All of the companies in the virtual shopping mall are reporting growing levels of business, beyond their expectations.”

TORGET, established in February 1996, offers the resources of more than 100 online content providers, receiving an average of approximately 2.5 million “hits” per day. The service’s centerpiece is a virtual shopping mall where customers can wander from shop to shop, browse through goods and services and then pay for them over the Internet.

James F. Chen, president and CEO of V-ONE Corporation, said: “TORGET’s success through SmartGATE demonstrates that with the right security solutions in place, today’s Internet can be a safe and profitable medium for conducting even the most sensitive business transactions. We are delighted that our SmartGATE technology helped make Sweden Post’s first-of-its-kind venture possible.”

Unmatched Security with SmartGATE

“SmartGATE is tailor made for doing real business over the Internet,” said Chen. “TORGET is a perfect example of how SmartGATE is making networks safe for business.”

Sweden Post installed V-ONE’s SmartGATE last October. SmartGATE allows secure coordination of the transfer of funds between shoppers and TORGET’s business partners.

A key component of the intelligent “gate” technology that is SmartGATE is smart card functionality. Smart cards (either cards and readers or online “virtual” cards) are issued by organizations to end users, enabling the organization to make exclusive services available to their selected blocks of customers. V-ONE has long been a leader in smart card security, being the first to integrate firewall technology with smart cards.

Since SmartGATE operates on a network at the application layer, its ability to work with existing legacy systems and non-Web TCP/IP applications offers flexibility unmatched in any other security product. SmartGATE works easily with multiple firewalls and has been endorsed by Trusted Information Systems, makers of the Gauntlet firewall and by Global Internet Software Group, producers of the Centri Security Manager product line. Both companies are selling SmartGATE through their existing firewall channels given the enhanced business-building capabilities SmartGATE offers firewall customers.

General Electric Information Services, MCI, Florida State University and several leading banks and financial institutions are among those using SmartGATE for secured communications and information exchange.

TORGET in Action with SmartGATE

TORGET subscribers who apply for the service’s smart card can pick it up a few days later at a nearby post office, along with a basic card reader that attaches to a standard personal computer. The customer also receives a diskette containing a virtual smart card that can easily be loaded in the PC and used in place of the physical card. The customer’s financial information is recorded on Sweden Post’s servers, where it is protected by TORGET’s firewall.

When the shopper’s identity is authenticated, SmartGATE generates a random, 56-bit code to encrypt the transaction as it travels across the Internet. The!code — used only once — can be decrypted only by an authorized Sweden Post employee granted access by his or her own personalized smart card.

Sweden Post’s initial goal in establishing TORGET was to protect its revenues. “We realized several years ago that electronic communication would eventually pose a significant threat to our traditional business,” said Norin. “On the other hand, we also saw that it presented a potentially huge business opportunity and so began investing in developing electronic commerce and e- mail for our business partners.”

TORGET can be accessed at http://www.torget.se.

About V-ONE Corporation

V-ONE Corporation licenses SmartGATE, an intelligent software “gate” that enables organizations to establish secure communications and transaction channels over public networks like the Internet. Major financial institutions, sensitive government agencies and large health care concerns use SmartGATE for its integrated authentication, encryption and access control options.

SmartGATE tightly manages controlled users accessing sensitive data without changing an organization’s existing firewalls, applications and network architecture. V-ONE is headquartered in Rockville, MD. Product and security information, white papers and V-ONE’s latest news releases may be accessed via the company’s World Wide Web site at http://www.v-one.com.

This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ in a material way from actual future events. For instance, factors which could cause results to differ from future events include rapid rates of technological change and intense competition, among others. Readers are also referred to the documents filed by V-ONE Corporation with the SEC, specifically the Company’s registration statement as filed on Form S-1 and the last report on Form 10-K which identify important risk factors for the Company.

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