BALTIMORE and KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--July 16, 1997-- Information Resource Engineering Inc. (IRE) of Baltimore (Nasdaq/NM:IREG), and Lockheed Martin Information Systems & Technologies (IS&T) of King of Prussia, Wednesday announced that they have agreed to team their respective information technology capabilities to capitalize on the growing market for secure electronic commerce on the Internet.

Combining two of today's hottest trends -- information security and systems integration -- this alliance will provide clients with a simple solution in the migration from paper-based systems to Internet-based electronic commerce. In addition, the alliance calls for Lockheed Martin to purchase and resell IRE products and services.

The alliance pairs IS&T's systems integration capabilities and commercial information technology solutions with IRE's award-winning SafeNet family of Internet security products. Targeted markets include telecommunications, finance, insurance, healthcare, banking and pharmaceuticals.

Commenting on the news, IRE Chairman Anthony Caputo commented, "We find many customers today entering into large-scale deployment of our products. As a result, they require systems integration capabilities such as those provided by IS&T in order to quickly and efficiently install and maintain these broad secure electronic commerce applications.

"IS&T is an ideal partner for IRE since much of their business focuses on major corporations who are hoping to use IRE SafeNet products to provide secure electronic commerce on the Internet."

"Lockheed Martin and IRE share many of the same blue-chip clients," commented Raymond Delaney, Vice President of Lockheed Martin IS&T. "We have found that our clients increasingly require secure solutions for their EDI and electronic commerce applications. As such, it was logical for us to form this alliance with IRE, which will allow us to bring SafeNet products to our systems integration clients.

"Our marketing efforts have already identified significant customer opportunities for the combination of IRE's comprehensive SafeNet product family and IS&T's extensive systems integration capabilities."

SafeNet - Making Business on the Internet Possible

IRE's SafeNet Internet security products allow organizations to leverage the advantages of the Internet by employing advanced encryption technology to protect even the most sensitive of data.

Covering a wide array of security requirements, the SafeNet product family includes the full suite of Internet security -- user identification, one-time password generation, access control, data encryption and packet authentication. SafeNet/Enterprise includes the SafeNet/Firewall to protect connections for both public and private access to the Internet.

SafeNet/LAN is used to protect Intranet connections, allowing only secure communication across the organization's Internet VPN at very low cost and SafeNet/Frame provides encryption on high speed frame relay networks at speeds up to 8 Mbps.

For remote users, SafeNet uniquely provides cost-effective, convenient options. SafeNet/Smartcard and SafeNet/Soft provide excellent value in end user security. SafeNet/Smartcard is a smartcard user token combined with a card reader and software which operates without modifying software.

SafeNet/Soft is a software-only solution for remote users which is also application software transparent. And the SafeNet/Dial Secure Modem combines a pocket modem with hardware encryption for maximum security and performance.

About IRE

A leader in the network security industry since the company's inception in 1983, IRE (Nasdaq/NM:IREG) is a leading developer and manufacturer of secure communications systems solutions that protect data transmissions on computer networks through the use of Encryption Technology.

Organizations using IRE products include J.P. Morgan & Co., Chase Manhattan Bank, Bank of New York, and Banc One. IRE systems are installed at a number of major international organizations including Euroclear Operations Centre in Brussels, the Central Bank of Sweden, and the Post Office Savings Bank of Singapore.

The United States Treasury Department, Lucent Technologies and the Federal Bureau of Investigation also use IRE Secure Communications Systems to protect sensitive data.

About Lockheed Martin Information Systems & Technologies

Lockheed Martin Information Systems & Technologies (IS&T) is a premier provider of commercial information technology solutions and an integral element of Lockheed Martin Management & Data Systems (M&DS).

M&DS has a 30-year tradition of providing integrated information solutions and services to a growing government and commercial market. With headquarters in King of Prussia, IS&T draws on M&DS' systems integration expertise in identifying, developing and deploying strategic information systems.

To help better align their technology investment with their business strategy, IS&T provides clients with a full range of open-systems information technology, project management and consulting services.

For more information please visit our World Wide Web sites at http://www.ire.com and http://www.lmco.com/ist . -0- SafeNet is a trademark of IRE. All other trademarks are property of their respective owners.

CONTACT: Lockheed Martin Information Systems & Technologies

Paul Mancini, 610/992-6286

paul.mancini@lmco.com

or

Information Resource Engineering, Inc.

Roberta Bowersox, 410/931-7583

rbowersox@ire.com

or

Cameron Associates

Tom Ennis, 212/245-8800

tom@cameronassoc.com

or

Al Paul Lefton Co.

Grant Evans, 215/351-4210

grantevans@lefton.com