Templar Full Strength Encryption Now Available toCompanies Worldwide; First Self-Escrow Software...

The KMI exception entitles Premenos to ship Templar worldwide without limitation on its encryption strength or any modifications to the present product.

Until this year, the United States government had generally limited the export of encryption products to key lengths of 40-bits. With this approval, Templar becomes the first United States based security product to offer worldwide access to a low cost, self-escrow key recovery system and, therefore, is able to provide more powerful 168-bit keys, Triple DES, to international customers without regard to industry sector.

This special KMI approval allows "self-escrowed keys" so that a corporation can appoint trusted employees to be key recovery agents utilizing their existing internal security infrastructure. Premenos will recommend procedures to international customers who choose to self-escrow or appoint a key recovery agent.

The KMI approval granted to Premenos' Templar is viewed as precedent setting by all those watching the encryption export policy issues hotly debated in Washington, D.C. This approval grants Templar customers the advantage of being their own escrow agents. This can eliminate the cost associated with third party escrow agents, in addition to enabling customers to use strong encryption internationally.

William Reinsch, undersecretary of commerce for export regulation, stated, "We're pleased that Premenos met our key recovery requirements and can now export its Templar product. We continue to work closely with companies who recognize the need for key recovery as a vital feature of safe, secure, encryption products. As we have consistently stated, our policy is to encourage, through our export policy, the world market demand for products with recovery features."

Premenos' president and CEO, Tim Dreisbach, said, "We already have over $10,000,000 per day in financial transactions being conducted securely and reliably over private and public TCP/IP networks using Templar. To date, most of these transactions have been within the United States. Premenos' goal is to facilitate electronic commerce for customers on a global basis across the public Internet and private extranets. Today's breakthrough announcement marks the first time Templar, with strong encryption, is available to all customers worldwide. It is especially significant for our client base of large financial corporations who wish to conduct critically important transactions with international clients."

Jeanine Khoury, vice president of electronic commerce for The Chase Manhattan Bank said, "Chase is pleased that Premenos' Templar has received this license exception because it will enable Chase to exchange payment transactions via the Internet with our international clients using the most robust encryption available."

Premenos' founder and chairman, Lew Jenkins, added, "We welcome the opportunity to introduce international customers to the strong encryption technology used in Templar, and are confident that it will set the standard for EDI security abroad just as it has already in the U.S. domestic market."

Jenkins originated the concept of Templar as a means to exploit the power of the Internet for business-to-business electronic commerce in 1993. Premenos introduced the first generally-available release of Templar to the United States market in May 1995.

About Premenos Technology Corp.

Premenos (NASDAQ:PRMO) is a leading provider of electronic commerce solutions for established and emerging trading communities. Its standards-based business applications leverage the strengths of traditional EDI systems, TCP/IP networks and Web technologies. Premenos has a history of market-proven innovation, including Templar, the first network-independent technology for secure, auditable data transmission over public and private Internets.

Through partnerships with leading application and integrated solutions vendors, Premenos empowers businesses to lower costs, shorten trading cycles and increase competitive advantage. Premenos' renowned Electronic Commerce Resource Guide can be reached at www.premenos.com . -0-

Note to Editors: Premenos and Templar are trademarks or registered trademarks of Premenos Corp.

CONTACT: Premenos

Rebecca Young, 510/602-2000

rebeccay@premenos.com