Diversinet Corp.

Diversinet Corp.

March 29, 2005 10:12 ET

Diversinet Strengthens Its Operational Plan to Focus on Mass Market Mobile Authentication Services


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DIVERSINET CORP.

OTC Bulletin Board SYMBOL: DVNTF

MARCH 29, 2005 - 10:12 ET

Diversinet Strengthens Its Operational Plan to Focus
on Mass Market Mobile Authentication Services

TORONTO, ONTRAIO--(CCNMatthews - March 29, 2005) - Diversinet Corp.
(OTCBB:DVNTF) -

- Company Announces Asset Sale of Non-Core DSS Software Technologies
Subsidiary -

Diversinet Corp. (OTCBB:DVNTF), a leading provider of mobile device
security for the mobile data ecosystem, today announced the asset sale
of its wholly owned subsidiary DSS Software Technologies to CIT Global,
Inc., an international provider of high quality, innovative eCommerce /
mCommerce solutions and services.

"The sale of DSS allows the company to focus exclusively on executing
our plans to deliver our mass market mobile authentication service
strategy," said Nagy Moustafa, Chief Executive Officer of Diversinet.
"The net assets and customers acquired through the purchase of DSS in
2003, while a significant portion of our current revenue stream, are not
consistent with our new business strategy."

"The global need for strong authentication solutions to protect
businesses and consumers from phishing and identity theft is set to
explode. Over the last six months we have seen significant customer
interest in Diversinet's suite of mobile authentication solutions," adds
Kashif Hassan, President of Diversinet. "With the sale of the non-core
DSS assets, Diversinet can now fully focus its efforts on providing
mobile device-based authentication services to protect the user's
identity, data and devices for personal communications and commercial
transactions."

Under this asset sale agreement Diversinet sold the majority of the
assets, liabilities and customers to CIT Global, which will continue the
operations as CIT Global, capitalizing on DSS' strong synergy with CIT
Global business and capabilities.

"We are pleased with the opportunity to expand our market development
with the acquisition of DSS operations and business from Diversinet",
said Ashraf Zaki, President & CEO of CIT Global. "Combining DSS' quality
services and market presence with CIT Global's niche eCommerce
technology solutions and global delivery capabilities will provide a
significantly enhanced value proposition to current and future clients
of both organizations. We welcome DSS' talented professionals to the CIT
Global team."

Diversinet has determined that the opportunity for mobile authentication
services is very large and the company will initially focus its efforts
on the mobile opportunity. The Federal Trade Commission in the United
States has estimated that during 2003 almost 10 million Americans
discovered they were victims of identity theft with losses approaching
$50 billion. According to Dataquest, some 52 million U.S. households, or
about 51 percent of the total, own a mobile phone. Deploying a strong
authentication application on mobile phones would enable businesses and
consumers to use their mobile devices to authenticate themselves for
online transactions with enhanced security to protect their identity.

Diversinet offers an industry-leading solution for mobile-optimized
strong authentication through its Diversinet MobileSecure Client and
Authentication Service offerings available on all intelligent mobile
device platforms including Microsoft, RIM, Symbian, Palm and Java-based
phones.

As part of the sale, Diversinet has entered into a guarantee agreement
to provide certain indemnification provisions to CIT Global against
continued earn out payments over the next 5 years. The asset purchase
agreement sale will result in net proceeds of US$250,000, with $100,000
paid at closing with the remaining $150,000 being paid equally on May 1,
July 1 and September 1, 2005. Diversinet acquired DSS in January 2003.
The assets being sold relate mainly to the systems integration and
technical consulting business that DSS carried out prior to its
acquisition by Diversinet. These revenues represent approximately 63% of
Diversinet's 2004 revenues.

About Diversinet (OTCBB: DVNTF)

Diversinet (www.diversinet.com) is a leading mobile device security
provider for the mobile data ecosystem. Diversinet products and services
allow users to protect their identity, data and device for personal
communications and commercial transactions. The Diversinet MobileSecure
Client and suite of Mobile Authentication Services enable application
providers, mobile network operators and security service providers to
rapidly develop, deploy and manage secure mobile data services for the
over 1.5 billion mobile device users worldwide. The Diversinet
MobileSecure Client delivers the industry's first open mobile security
platform to support OATH-Compliant strong authentication on mobile
devices and networks. For more information about the initiative for Open
AuTHentication (OATH) visit www.openauthentication.org.

About CIT

CIT Global, Inc. is an international IT services and solutions provider
that delivers innovative, high quality, cost-effective
eCommerce/mCommerce solutions to its clients. CIT's extended expertise
in transaction-based solutions and services enables us to lead our
clients into the next generation of multi-channel fully secured
eCommerce systems, covering the whole ePayment chain, serving eMerchants
and financial institutions. Additionally, CIT offers its eIntegration
Services to help its financial and technology clients build custom,
innovative eBusiness solutions. CIT client list includes leading
institutions from United States, Canada, Europe and the Middle East. To
obtain more information, please contact us at: info@citglobal.com or
www.citglobal.com

The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in
this press release (as well as information included in oral statements
or other written statements made or to be made by the company) contains
statements that are forward-looking, such as statements relating to
anticipated future revenues of the company and success of current
product offerings. Such forward-looking information involves important
risks and uncertainties that could significantly affect anticipated
results in the future and, accordingly, such results may differ
materially from those expressed in any forward-looking statements made
by or on behalf of the company. For a description of additional risks
and uncertainties, please refer to the company's filings with the
Securities and Exchange Commission.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Diversinet Corp.
    Kashif Hassan
    President
    (416) 756-2324 ext. 299
    khassan@diversinet.com
    or
    Sacke & Associates Inc.
    Gary Hilson
    Senior Account Consultant
    (416) 493-5723 ext. 203
    garyh@sackepr.com