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Interview with Gerry Euston, CEO, Ceelox Corporation

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The reason I get excited about KUA is the fact that for biometrics it shows that there was a real confidence in biometrics security for a high security application. You know there are a lot of people we find who know about biometrics, but they have not used biometrics themselves and are a little hesitant to jump in. In this case, this was the command and control centre for KUA Utility, the network operation centre, the brains of their network.

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									Interview with Gerry Euston, CEO, Ceelox Corporation
Nov-05-07 FB Ceelox recently announced that the Kissimmee Utility Authority deployed Ceelox technology to meet NERC (North American Electric Reliability Corporation) requirements. Can you please explain what those requirements are and why Ceelox was chosen? GE Absolutely! I am not intimately familiar with NERC CIP (Critical Information Protection) requirements, however they circle around two areas – one is physical security and the other is what they call cyber security. On the cyber security, as with a lot of government regulations, they tell you what you have to do, or the standard, but not HOW to do it. The NERC CIPs surrounding cyber security deal with logical access; so the emphasis is on providing security for access to sensitive and critical systems, in this case, electrical utility command and control systems that could stop power, reduce power, cut off power and so forth. Due to terrorism concerns, the NERC standards are calling for greater security. The reason that Kissimmee Utility Authority selected Ceelox is twofold. Bob Depascale at KUA is a great fan of ours and that brings me to the first reason. He was very impressed with the support that he got from Ceelox on the whole process; defining his solution, working with him on some small customizations that we had to do to meet his requirements which we were able to do because we are a software company. The second reason is because our solution, in general, was 95% spot-on to what he needed and we made the modifications to give him 100% of what he needed. The reason I get excited about KUA is the fact that for biometrics it shows that there was a real confidence in biometrics security for a high security application. You know there are a lot of people we find who know about biometrics, but they have not used biometrics themselves and are a little hesitant to jump in. In this case, this was the command and control centre for KUA Utility, the network operation centre, the brains of their network. This is where their technicians sit, 7/24, and man the terminals to control the network; respond to any outage situations or do routine maintenance and so forth. The fact that they trusted our biometrics and are extremely happy with the Ceelox solution that they have deployed is a great statement for biometrics in general and also a great statement for Ceelox and how our solutions really work and support needs in high security environments. FB You also announced that former US Attorney General John Ashcroft has joined your Advisory Board. What does this mean to your company?

GE Well I think it is, once again, a validation of Ceelox in the marketplace. John Ashcroft did his due diligence on Ceelox before joining our board and before establishing his equity relationship with Ceelox, and he is now a great supporter. He thinks “we have the best solutions for security” and I think it is an endorsement for Ceelox and the progress we have made in the last few years with our product set, and he recognizes that and is a great champion of ours. FB Secure Mail is one of your new products. Can you speak about some of the features of this product? GE SecureMail is an email encryption product and of course there are other email encryption products in the marketplace today and ours differs in a couple of ways. If you are familiar with competitive solutions, gateway solutions or PKI kinds of solutions, those solutions are extremely expensive to deploy initially and then to maintain going forward. In the case of PKI solutions you often need a PKI engineer with a cost in the range of $150,000 a year to take care of and maintain that system. The same thing is true with Gateway solutions, although probably not quite as expensive. So those competitive solutions are high cost solutions. Ours is a very affordable, economic solution and can even be taken down into the small business market. Small and medium business really haven’t had many options at all for email encryptions before and now those businesses are becoming aware, as is the rest of the enterprise market in general, of the need for additional security, particularly around email. The second point of differentiation is that our solution is an end-to-end encryption solution. With Gateway or PKI, those solutions provide server to server encryption, but that means that your email is not protected as it traverses the internal corporate network and it is not protected as it sits on the desktop. We think that if it is important enough to be encrypted in the first place, it is important enough to keep encrypted on the desktop. We also know studies have found that somewhere in the 60-70% of breaches are caused by internal participants as opposed to external participants. So it is very important, we think, to have an end-to-end solution as opposed to a server-toserver kind of solution. Another difference is that our competitors may employ powerful 2,000 bit encryption, but access to that encryption is controlled with a 6-digit password like SPOT12. How difficult is that to hack? Ceelox offers users the option of biometric access control. Our password equivalent is a combination of a biometric template and the distribution list of each individual email. The other key difference is our ease of use. As with every one of our products our mantra has been not only to provide very strong security, but also to provide the most user-friendly; easy to use; and easy to deploy and manage security software in the market. With SecureMail we have an Outlet plug-in, and all it takes is one more step, the swipe of a finger or another click. With that one additional easy step, you authenticate yourself to create an encrypting key and encrypt the document. One fingerprint swipe and you are done. It works the same way to decrypt, double click a message – ordinarily it would pop right up –with ours you authenticate again with the swipe of a finger or another click; and then the email is decrypted. Although there is a lot of strong security going on in the background, it really is as simple as that.

FB Gerry, has this been a good year for the company? GE It has been a great year! There have been a lot of exciting things going on in the marketplace. We have had some key customers like the KUA and other bank customers who are now providing endorsements and references for us. We have made a lot of progress on the product front as well. I think the last time we spoke to you we were about to introduce a new PC version of our Ceelox Vault™ product. We have done that so we now have not only the portable Ceelox Vault™ with rock solid encryption, and again, very easy to use from an end-user standpoint; but we now have that same solution available on the desktop. This is important because when you read about these lost or stolen laptops, generally nine out of ten times there was some sort of encryption available on those laptops; but the user simply didn’t know how to use it. They are too hard to use. Our solution, again, is easy to use from an end-user standpoint. It is drag and drop encryption. So if you can drag something into the trash bin, you can drag something into the encryption bin and have a very secure solution. One other thing. Just recently, we introduced another version of our Vault product with a FIPS Federal Information Processing Standards 140-2 compliant cryptographic module. So we are now FIPS 140-2 compliant which is key for the government marketplace and it is a stamp of approval again that our encryption is the best known that there is out there. The FIPS 140-2 crypto module that we used passed rigorous testing to get approved and it is now available in the marketplace. We just introduced that in August and it is already generating a great deal of interest and success in the market.

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