Protexis Awarded Patent for Persistent Software Encryption

May 22, 2001, Vancouver, BC – Protexis Inc. announced today that it has received U.S. Patent No. 6,223,288 entitled "System for Persistently Encrypting Critical Software File to Prevent Installation of Software Program on Unauthorized Computers". This patent addresses fundamental issues related to software protection and piracy, distribution of data via electronic commerce and enhancement of conventional distribution channel capability.

Protexis Inc. was established in March, 2000 and acquired the software anti-piracy, electronic licensing and registration business assets from Paradata Systems Inc. Protexis provides channel-enabling solutions for electronic software licensing and registration.

Fundamental issues addressed by this patent include:

Enabling software vendors to specify access controls to prevent piracy
Distributing locked digital content or software via CD or the internet
Unlocking a software program on a specific computer
Browsing or searching for secured content among a group of products or from a number of providers prior to purchase
Previewing secured content without having to modify customer computers prior to purchasing the secure content or its corresponding license key
Supporting retailer involvement in post sales activities such as viral marketing or additional content purchases after the initial sale of a CD

"This is an important patent for protection of software and digital content as well as electronic commerce distribution systems," stated David Dunnison, Protexis President and CEO. "It overcomes a number of challenges associated with existing distributed data commerce systems and conventional retail channels. This patent offers direct benefits to software and digital content publishers, fulfillment providers, distribution channels, and end-users. This patent, particularly when combined with our U.S. Patent 5,809,145 covering the locking of software onto specific computers, provides end-to-end technology for delivering software or digital content to specific and intended computers, all of which can be supported by effective e-commerce payment systems. It is a major step forward in the practical distribution of digital content."

About Protexis

Protexis Inc. is a privately held Canadian company with head offices in Vancouver, BC. The Protexis system is a complete eBusiness platform for software and digital content. The company offers patented, internet-based solutions for securing software and delivering, managing and selling electronic licenses through any distribution channel. Crystal Decisions, a software eBusiness leader, utilizes the Protexis system internationally for the licensing and registration of their flagship Crystal Reports product. Protexis is venture-backed and investors include the Canadian Science & Technology Growth Fund Inc., Trudell Medical Limited and Silicon Valley-based Sunwolf Ventures LLC.

For additional information on Protexis and its electronic software licensing products visit our web site at www.protexis.com, call 604.915.5200 or e-mail info@protexis.com.

Contact:
Cindy Oxenbury, Business Development Specialist
Protexis Inc.
T: 604.806.3392
F: 604.915.5210
cindy.oxenbury@protexis.com

Note: This News Release may contain future-oriented information that is based upon the Protexis business plans.