[Zero-Knowledge Press Release] ZERO-KNOWLEDGE SYSTEMS SECURES$12M IN CAPITAL FUNDING

[Robert Hettinga]

--- begin forwarded text


From: Dov Smith [EMAIL PROTECTED]
To: ZKS Press Releases [EMAIL PROTECTED]
Subject: [Zero-Knowledge Press Release] ZERO-KNOWLEDGE SYSTEMS 
SECURES $12M IN CAPITAL FUNDING
Date: Thu, 30 Sep 1999 10:33:55 -0400
Sender: [EMAIL PROTECTED]
Reply-To: [EMAIL PROTECTED]

==
Zero-Knowledge Systems Press Release, http://www.zeroknowledge.com
==

FOR IMMEDIATE RELEASE

ZERO-KNOWLEDGE SYSTEMS SECURES $12M IN CAPITAL FUNDING
FROM LEADING SILICON VALLEY VENTURE CAPITAL FIRMS
 
NetReturns2000--Aspen, Colorado--Sept. 30--

Zero-Knowledge Systems, a leading developer of Internet
privacy solutions, announced today it has secured US
$12 million in first round venture capital funding. The
lead investors are Platinum Venture Partners, Aragon
Ventures and Strategic Acquisition Ventures, the Silicon
Valley venture capital firms that have funded leading
Internet firms Inktomi, LiquidAudio, Star Media and
YesMail.com.

Zero-Knowledge is currently beta-testing its much-anticipated
Freedom privacy technology, which empowers users to surf the
Web, send email, post to newsgroups and chat via untraceable
digital identities called "nyms." All Freedom traffic is
encrypted and routed through the Freedom Network, a globally
distributed network of Freedom Servers hosted by ISPs and
independent server operators around the world. Heralded by
privacy advocates as the only fully trustworthy privacy
solution, Freedom will be available commercially in fourth
quarter 1999.

"In selecting our partners, we looked for investors who share
our vision of a multi-billion dollar privacy, identity and
trust industry, and see the incredible opportunity for Zero-
Knowledge to be the market leader in privacy and identity
management solutions," said Hammie Hill, CEO of Zero-Knowledge
Systems. "Our partners have a solid history of backing market
leaders introducing revolutionary technologies. Zero-Knowledge
is poised to become a market leader by ensuring that privacy
and identity reside on every consumer's desktop."

"The Internet was not created with privacy concerns in mind.
Zero-Knowledge will for the first time bring true privacy to
the Internet," said Mike Santer, co-founder and general partner
of Platinum Venture Partners. "Zero-Knowledge's technological
approach is the simplest and most comprehensive way for Internet
users to protect their privacy online. We see enormous growth
potential for providers of Internet privacy solutions and are
confident that Zero-Knowledge will establish a dominant lead
in this market."

"The Internet is revolutionizing consumer empowerment, and as
a leader in privacy protection Zero-Knowledge will be a market
leader in consumer protection and identity management," said
David Brewer, founder and general partner of Aragon Ventures.
"Zero-Knowledge will play a pivotal role in the evolution of
the Internet, as the number one consumer empowerment company
addressing the ever-increasing privacy concerns of Internet
users."

Mike Santer of Platinum Venture Partners and Alex Hern of
Strategic Acquisition Ventures have joined the Board of
Directors of Zero-Knowledge Systems.

About the Investment Partners

Platinum Venture Partners was founded in 1992  and maintains
offices in Palo Alto, CA and Chicago, IL. Aragon Ventures'
offices are in Palo Alto, CA. Strategic Acquisition Ventures'
offices are in Palo Alto, CA and Tampa, FL.

General Partners of these VC firms have been private equity
investors in leading  public Internet-related companies
Inktomi (NASDAQ: INKT), Liquid Audio (NASDAQ: LIQD), Star
Media Network (NASDAQ: STRM), Whittman-Hart, Inc. (NASDAQ:
WHIT) and YesMail.com (NASDAQ: YESM), which have a combined
market value of approximately US $10 billion. The VC firms
have also backed or co-founded private companies including:
Andromedia, Brainbuzz.com, Mothernature.com, National
Transportation Exchange and Triton Network Systems.

About Zero-Knowledge Systems, Inc.

Founded in 1997, Zero-Knowledge Systems
(http://www.zeroknowledge.com) is the first and only company
providing a total privacy solution for all Internet activities.
Zero-Knowledge is dedicated to protecting its customers'
privacy and freedom on the Internet through mathematics,
cryptography and source code. Based in Montreal, the company
employs 80 people and is rapidly expanding its operations.
Consumers interested in previewing Zero-Knowledge Systems'
Freedom technology can visit
http://www.zeroknowledge.com/products/download. Journalists
can visit the Zero-Knowledge pressroom at
http://www.zeroknowledge.com/pressroom.

(Freedom is a trademark of Zero-Knowledge Systems, Inc. All
other names may be trademarks of their respective owners.)

For more information, please contact:

Dov Smith
Director of Public Relations
514.286.2636 x 248
[EMAIL PROTECTED]

Meredith Markman
Weber Group Public Relations
415.616.6238

Export ?

[Andy Maslar]

At the risk of being flamed for being a hopeless newbie, or perhaps as
one asking a practical question about export regs, (something that seems
in bad taste lately) I will nevertheless proceed:

Are hash functions (MD5 specifically) controlled by export regs?

Of course I know that any answer is subject to change at any time, and
this question is probably pointless in the context of ongoing events,
yet I have never been one to shy away from something just because it's
pointless.

I welcome your thoughts.

-Andy

RE: Rumor of a working quantum computer

[Trei, Peter]

Keith Dawson[SMTP:[EMAIL PROTECTED]] writes:
Sent:  Thursday, September 30, 1999 9:00 AM
Subject:   Rumor of a working quantum computer
To:[EMAIL PROTECTED]

Anyone heard word on this rumor? The Sunday Times story claims
that a European Institute of Quantum Computing Network has been
hastily formed to develop commercial banking codes based on
quantum entanglement.

  The institute was founded a few weeks after news leaked from
  the Israel's Weizmann Institute that it was using a mixture of
  quantum computing and special optical technology to break
  the RSA-512 code, the system used by the European banking
  system. It claims it has developed a hand-held device that
  can break the code in 12 microseconds.

The "special optical technology" sure sounds like someone has
implemented Shamir's TWINKLE already.

[TWINKLE I can believe. Quantum computers sound fishy. --Perry]
Is there any truth to this?

http://www.sunday-times.co.uk/news/pages/tim/99/09/29/timintint02001.html?1
341861

The short answer seems to be 'No.'

Venerable as the Times of London is, I've found the
fact-checking at the Sunday Times to be wanting on
occasion. While www.eiqc.org is a real web site, it is
curiously content free - the only contact points listed
are email addresses in other domains, and the only
'meat' in terms of quantum research lie in pointers to
other sites, none of which mention a working quantum
computer. It's particularly interesting that the EIQC
site mentions nothing about the Weizmann Institute's
purported use of quantum and optical methods to quickly 
crack RSA-512, since that is the alleged reason for it 
was created.
. 
The only paper directly referenced is TWINKLE, and that's 
refered to at jya.com, rather than WPI (where the paper
was presented), or Technion U. (where the research was
done).

I asked Bob Silverman, the Senior Research Scientest
and factoring expert here at RSA Security, about
this, and his opinion was that the EIQC and the claims
for a working quantum computer were almost certainly a
hoax.

I think the Times got snookered on this one.

Peter Trei
[EMAIL PROTECTED]

Disclaimer: The above represents my (and Bob's)
personal opinions only, and should not be
construed as neccesarily representing those of
our employer.

[NewsScan newsscan@newsscan.com] NewsScan Daily, 1 October 1999 (Above The Fold)

[Perry E. Metzger]

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From: "NewsScan" [EMAIL PROTECTED]
To: "Multiple recipients of list newsscan [EMAIL PROTECTED]" [EMAIL PROTECTED]
Date: Fri, 01 Oct 1999 06:10:52 -0700
Subject: NewsScan Daily,  1 October 1999 ("Above The Fold")
Reply-To: "NewsScan" [EMAIL PROTECTED]

NewsScan Daily,  1 October 1999 ("Above The Fold")

 
NewsScan Daily is underwritten by Arthur Andersen and IEEE Computer 
Society, world-class organizations making significant and sustained 
contributions to the effective management and appropriate use of 
information technology.


[...]

JUSTICE MAY REVIEW ENCRYPTION RULING
An appeals court has granted the U.S. Justice Department a new hearing over
its authority to regulate the export of encryption technology. In May, a
three-judge panel had ruled that encryption programs and the mathematical
algorithms therein were expressions of ideas, and therefore protected under
the right to free speech. The panel found that the existing regulations
"allow the government to restrain speech indefinitely, with no clear
criteria for review." Justice appealed that decision, which it said
threatened its ability to keep strong encryption software out of the hands
of criminals and terrorists. The lawsuit was initiated by Daniel Bernstein,
a professor at the University of Illinois at Chicago who claimed government
suppression of his encryption software was a violation of his right to free
speech. The Clinton administration has promised some concessions to software
companies who want to export their encryption products, but those rules
won't be implemented until December. (AP 1 Oct 99) 
http://wire.ap.org/

[]
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