San Jose, California – June 12, 2006 – SPYRUS, Inc. announced today that Info Security Products Guide, a Silicon Valley Communications publication and the world’s leading publication on security-related products and technologies, has named the Hydra Privacy Card® (Hydra PC) Series II a winner of the Global Excellence in Secure and Removable Mass Storage Device Customer Trust 2006 Award. This customer trust honor is a powerful endorsement of the Hydra PC’s innovation when it comes to the best-of-the-best products that can provide the highest security in storing and transporting critical or personal information. SPYRUS will demonstrate the Hydra PC Series II device at Microsoft Tech Ed 2006 this week in Boston.

More than 18,000 end-users and prospective customers from worldwide were invited to vote for the products they trust the most when it comes to protecting their digital resources. A special e-copy edition of Product Excellence guide, which includes the Hydra PC Series II, is available by request. Simply register for the document at the Info Security Products Guide site http://www.infosecurityproductsguide.com/freeguide.html.

“The SPYRUS Hydra PC was awarded ‘Best in Class’ for a secure mass storage USB type device because it provides the highest strength and grade of security available in the market today,” said Rick Justice, chief technology editor of Info Security Products Guide. “The Hydra PC is a multifunctional device that secures data on the removeable miniSD, operates as a public key token for authentication, and is a high-speed media encryptor. Many of our readers have strong requirements for security and compliance. The Hydra PC represents a powerful solution to meet these needs.”

“Info Security Products Guide’s recognition of the Hydra PC further validates our product as excellence-in-class for secure storage of critical data,” said Tom Dickens, COO of SPYRUS. “SPYRUS is a security company applying security techniques to memory, not a memory company trying to provide security, thereby providing assurance to our customers that their critical data is appropriately protected. With the introduction of the Hydra PC for authentication and secure mass storage, we are ready to meet the demands for data protection in the healthcare, financial and government markets worldwide. Our unique security design has enabled SPYRUS to be first in the market with the most advanced authentication and mass storage device security available today working with Microsoft Windows platforms.”

The Hydra PC Series II’s support for the highest strength cryptographic algorithms, termed Suite B, is ideal for storing, protecting and transporting critical or personal information for decades. It is ideal for use in markets with strict regulatory compliance requirements for privacy and/or auditability of sensitive information, such as financial markets complying with Sarbanes-Oxley or the Gramm-Leach-Bliley Act or healthcare markets complying with the Health Insurance Portability and Accountability Act (HIPAA). The Hydra PC Series II support for multilevel security architectures across heterogeneous networks in a Service Oriented Architecture (SOA) has important benefits in both commercial and government enterprises.

The Hydra PC Series II also addresses the security and storage needs of the rapidly growing Department of Defense market which requires a true, high security USB file transport device to move confidential data between elements of the SOA-oriented Distributed Common Ground Systems (DCGS) modernization effort in support of the Global Information Grid in U.S.-led and multinational environments. To read more about this product, please visit http://www.infosecurityproductsguide.com/products/HydraPC.html.

About Silicon Valley Communications Awards
Info Security Products Guide, published by Silicon Valley Communications, plays a vital role in keeping end-users informed of the choices they can make when it comes to protecting their digital resources. It is written expressly for those who are adamant on staying informed of security threats and the preventive measure they can take. You will discover a wealth of information in this guide including tomorrow’s technology today, best deployment scenarios, people and technologies shaping info security and independent product evaluations that facilitate in making the most pertinent security decisions. The Info Security Products Guide Awards recognize and honor excellence in all areas of information security. To learn more, visit www.infosecurityproductsguide.com and stay secured.

About SPYRUS:
SPYRUS has provided products and services for the information security market since its inception in 1992. Our focus is on customers in Government and Commercial enterprises, particularly those needing data protection and privacy in vertical markets regulated by stringent mandates such as Gramm-Leach-Bliley, HIPAA and Sarbanes-Oxley. Our primary product lines of Hardware Security Modules, Rosetta Client Authentication (smart cards, USB tokens and readers) and Identity Management products (Signal Identity Manager and SPYRUS PKI) meet customer needs for high-assurance security through our extensive portfolio of intellectual property, our security expertise, and our implementation of the strongest commercial cryptographic algorithms available today. Our latest algorithms, termed Suite B, have been designed to exceed the highest standards of security certification such as Common Criteria, FIPS 140-2 Levels 2 through Level 4 and FIPS 201. Hundreds of government entities, corporations, systems integrators and resellers worldwide have deployed our solutions. SPYRUS is a privately held company headquartered in San Jose, California, with offices in Canada and Australia.

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For more information, press only:
Dan Chmielewski
Madison Alexander PR, Inc.
For SPYRUS, Inc.
714-832-8716
949-231-2965
dchm@madisonalexanderpr.com