Cryptography Research Joins Innovation Alliance

SAN FRANCISCO, California — June 11, 2007 — Cryptography Research, Inc. (CRI) today announced that the company has joined the Innovation Alliance, a coalition of entrepreneurial companies seeking to enhance America’s innovation environment and competitiveness through improved patent quality. CRI will work with the Alliance to educate policymakers about the critical importance of maintaining a strong, evenhanded patent system. CRI holds more than 50 issued and pending patents for its ground-breaking technologies that address financial fraud, content piracy and other sophisticated security challenges associated with pay television, consumer electronics, payments and other complex systems.

“By advocating appropriate and measured patent reform, the Innovation Alliance seeks to make patents stronger and more predictable, enabling companies and individuals to continue investing in R&D and making technology advancements,” said Kit Rodgers, vice president of business development and licensing at CRI. “We look forward to working with them and supporting their efforts."

The Innovation Alliance consists of innovators, patent owners and stakeholders from a diverse range of industries who are dedicated to maintaining a sound patent system by advocating targeted, balanced reform. The Alliance believes that when modifications to the patent systems are necessary, they should be narrowly focused on improving patent quality, enhancing certainty and preserving market-based valuations of patents. The Alliance emphasizes that one of the key elements to patent reform is the protection of emerging, innovative, patent-dependent businesses and their surrounding ecosystem.

"Entrepreneurial companies depend on a sound patent system to protect their innovations and nurture the competitive spirit that drives the U.S. and global economies,” said Eric Thomas, spokesperson for the Innovation Alliance. “The Alliance firmly believes that the patent system and associated reforms should help companies like Cryptography Research develop their ideas, not hinder their progress. We are pleased to have Cryptography Research join our coalition and add to our efforts.”

About the Innovation Alliance

The Innovation Alliance is a coalition of entrepreneurial companies seeking to enhance America’s innovation environment by improving the quality of patents granted and protecting the integrity of the U.S. patent system. To learn more, visit www.innovationalliance.net.