Cape Town, 27 September 1999 - CEQURUX Technologies, the Dutch-based Internet security company, has acquired Citadel Data Security, the Cape Town-based manufacturer of the Citadel Internet firewall and Citadel Virtual Private Network Gateway, for a combination of cash and shares. This was announced today by Citadel director, Graham Wheeler, and CEQURUX Chief Executive, Chris Pinkham.

Internet firewalls protect corporate users of the Internet from unauthorized use of their computer systems, and allow network managers to regulate and monitor Internet usage. Virtual Private Networks are formed by linking more advanced types of firewalls across the Internet, reducing costs and complexity in corporate network configurations. Using strong encryption algorithms, the Citadel VPN router acts as a firewall at each location and renders the intra-company data unreadable to unauthorized users as it crosses the Internet. Market estimates indicate that over 1 million firewalls will be sold worldwide during 2001, representing a market of over $1.8 billion.

CEQURUX is positioning itself as the leading provider of no-compromise Internet security solutions. Privately owned by American, British and South African shareholders, it has marketing and support branches in Seattle, London and Johannesburg, but will continue to develop the current range of products in Cape Town.

"We were looking for opportunities to exploit the booming Internet security software market. Citadel, with their competitive product set and world-class expertise in this area, were an obvious choice," said Pinkham, who is known to the South African Internet industry as co-founder and former Managing Director of Internet Africa. "We were impressed by their South African client list, the more comprehensive than average set of features, and the robust nature of their products. We see great potential for these products in the larger markets of the United States and Europe." CEQURUX plans to offer the rebranded CEQURUX Firewall and VPN Gateway to the European market immediately, and to launch the products in the United States by October.

For the Citadel founders, the sale means exposure to international markets and the opportunity to accelerate the growth rate of the business. Wheeler, who will become Vice-President, Engineering said, "We are particularly pleased with the plan to build significant support for our software outside South Africa. While we feel that, from a product point of view, we are up there with the market leaders, we haven't until now had the ability to market ourselves as well as we would have liked. The CEQURUX partners, which include Randy Bush, co-founder of Verio Inc., the fifth largest Internet Service Provider in the United States, have had the experience of taking both American and South African Internet service companies from startup through to maturity. They understand the technology and they know the needs of the industry. The expanded group will allow us, the software engineers, to focus our attention on product development."

The CEQURUX Firewall and VPN Gateway will be marketed through a network of Internet Service Providers and specialist Internet security consultants in South Africa, Europe, the Americas and the Asia-Pacific region. The company will offer sales and support training to its marketing partners from its Cape Town, London and Seattle offices.