Route1 Inc.

Route1 Inc.

June 24, 2011 08:00 ET

Route1's Secure Remote Access Solution on Contract With the U.S. Navy

Route1 Expects to Add 4,600 New Users Starting in Q3 2011

TORONTO, ONTARIO--(Marketwire - June 24, 2011) - Route1 Inc. (TSX VENTURE:ROI) ("Route1" or the "Company"), a security and identity management company, today announced that the outside contractor (the "Contractor") that provides the vast majority of required information technology services to the U.S. Navy, has informed it that the U.S. Navy can now procure Route1's secure remote access solution, effective immediately.

Under the terms of an agreement between the Contractor and Route1 (the "Agreement"), Route1 will sell its integrated security and identity management solution (the "Route1 Solution") to the Contractor and the Contractor will resell the Route1 Solution to the U.S. Navy, which requires universal, secure remote access to their digital resources and sensitive data. The Route1 Solution for the U.S. Navy is comprised of its private communications and service delivery platform, the DEFIMNET, its TruOFFICE application software, and its MobiKEY Fusion device.

The Contractor informed Route1 that the Route1 Solution is now a contract line item number ("CLIN") under the Navy/Marine Corps Intranet ("NMCI") continuity of services contract entered into during calendar 2010 between the Contractor and the U.S. Navy. This allows the U.S. Navy to procure the Route1 Solution through the Contractor immediately. The NMCI supports more than 700,000 Navy and Marine Corps military and civilian personnel.

The Agreement includes all traditional terms and conditions that would be found in a sub-contractor agreement including but not limited to the following:

  • The DEFIMNET platform to be used is the platform located in Norfolk, Virginia that was used for Route1's pilot project with the U.S. Navy.
  • The maximum number of permissible TruOFFICE application software licenses issued and associated users registered with the DEFIMNET platform will be 5,000.

Route1 expects to generate revenue from the sale of additional MobiKEY Fusion devices and monthly recurring service fees for the use of the DEFIMNET platform and TruOFFICE application software licenses. Assuming 5,000 subscribers over a full one year term and the procurement of an additional 4,600 MobiKEY Fusion devices, the Agreement will generate in excess of C$2.5 million in hardware and services revenue to Route1.

Route1 expects the first purchase order from the Contractor under the Agreement to be received shortly.

"Route1 is honored to have the opportunity to support the critical remote access needs of the world's largest and most advanced naval operations. This contract represents a major milestone for our company and provides further validation of the robustness of our unique, integrated solution. As data breaches become more pervasive, we believe that Route1 has the only solution which addresses the three issues central to providing truly secure remote access. Those issues are access, data security and entitlement management," said Tony Busseri, President and CEO, Route1 Inc.


Route1 delivers industry-leading security and identity management solutions to enterprises worldwide – businesses, government and military which need universal, secure access to all digital resources and sensitive data. These customers depend on The Power of MobiNET® - Route1's communications and service delivery platform. MobiNET® provides identity assurance and individualized access to networks and data. Route1's patented solutions are based on FIPS 140-2 cryptographic modules, and simplify the process of meeting increasingly stringent regulatory requirements for privacy and security. Headquartered in Toronto, Canada, Route1 is listed on the TSX Venture Exchange. For more information, visit our website at:

This news release, required by applicable Canadian laws, and does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

© Route1 Inc., 2011. All rights reserved. Route1, the Route1 and shield design Logo, SECURING THE DIGITAL WORLD, Mobi, MobiSecure, Route1 MobiKEY, Route1 MobiVDI, MobiKEY, MobiKEY IBAD, DEFIMNET, MobiNET, Route1 MobiNET, TruOFFICE, TruFLASH, TruOFFICE VDI, MobiKEY Fusion, EnterpriseLIVE, EnterpriseLIVE VO, MobiNET Agent and MobiKEY Classic, are either registered trademarks or trademarks of Route1 Inc. in the United States and or Canada. All other trademarks and trade names are the property of their respective owners. The DEFIMNET and MobiNET platforms and the MobiKEY, MobiKEY Classic and MobiKEY Fusion devices are protected by U.S. Patents 7,814,216 and 7,739,726, and other patents pending.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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