SOURCE: Uniloc USA

March 21, 2006 09:00 ET

Uniloc USA Secures Over $6 Million in Private Equity Financing

Funding Underscores Power of Electronic Device Recognition to Deliver Unmatched Security for Software Copy Control and Network User Authentication

IRVINE, CA -- (MARKET WIRE) -- March 21, 2006 -- Uniloc USA ("Uniloc"), the technology leader in electronic "device recognition" for software copy control, announces today the completion of a $6.1 million round of private equity financing. The additional funds will be used to fuel overall operational growth, expansion in the software copy control market, marketing, and to launch new product initiatives in network and data security markets.

Device recognition is the method of uniquely identifying a user device, such as a PC, smart phone or cell phone, by the naturally occurring, inherent physical imperfections of that device. The resulting "device fingerprint" is then used as a strong authentication factor to "device lock" user licenses or access credentials. Uniloc's technology can identify devices with more comparable accuracy than human DNA. Uniloc is the inventor and holder of the seminal device recognition patent (US 5,490,216), and has 10 related patents pending. Key software copy control customers have included IBM and Toshiba.

"Uniloc's device recognition technology is a proven software and content license management tool, and provides a revolutionary user authentication solution with tremendous potential in network and data security," said Uniloc's CEO William W. Winokur. "Uniloc's device recognition technology changes the cyber security paradigm. To impersonate a user, a hacker or cyber criminal must be on that user's actual, physical computer."

Uniloc's device recognition technology brings unprecedented security value to the network security market. Uniloc's device recognition technology has the highest anti-hacking strength vs. cost ratio available today when compared to security options such as corporate certificates, dongles, smartcards, risk-based authentication security systems such as that of PassMark Security, and even biometrics and one-time password generators.

"Until now, Uniloc's business has focused on software activation and the protection of intellectual property," said Uniloc investor Peter Wilson, an entrepreneur and early-stage investor. "But, with this capital raise, and in response to the surge in identity theft, network security breaches and the increasing risk of cyber-terrorism, Uniloc is extending its technology to include applications for network user authentication and data security."

Highly flexible and digitally distributable security, Uniloc's device recognition technology enables unlimited rights options and is extendable to all digital device platforms. It has a high level of user convenience and low implementation and maintenance costs. Implementation of a device locked authentication system is similar to simple password schemas; it can rapidly overlay existing security systems/assets; and its high reliability and automation reduces customer service resource requirements.

"Uniloc has leveraged its expertise in device locking for software authentication and the protection of intellectual property," said Uniloc investor and independent trader on the Chicago Board of Trade, Paul L. Richards. "Uniloc is now delivering the powerful and cost-effective properties of this technology to build network and personal data security solutions. These solutions can be applied to secure everything from online content such as market data to electronic trading and consumer banking."

"We're extremely proud that our technology and track record enabled us to secure this additional funding from this influential group of investors and industry experts," said Winokur. "This support will help further build out our capabilities and secure our position as a technology leader in the network security and intellectual property security spaces."

ABOUT UNILOC USA

Uniloc USA ("Uniloc") is the technology leader in electronic "device recognition" for software copy control, Device recognition is the method of uniquely identifying a user device, such as a PC, smart phone or cell phone, by the naturally occurring, inherent physical imperfections of that device, and then incorporating that "device fingerprint" into access credentials or licenses. Uniloc's technology can identify devices with more comparable accuracy than human DNA. Uniloc is the inventor and holder of the seminal device recognition patent (US 5,490,216), and has 10 related patents pending. Uniloc has applied its device recognition technical expertise into seven vertical markets: software publishing, on-line publishing, enterprise information security, market data, electronic trading, consumer banking, and optical media. For more detailed information, please visit www.unilocusa.com.

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