"LITRONIC Uses VSS Biometric Authentication With Smart Cards."

IRVINE, Calif, Aug. 14, 2000 – Litronic Inc. (Nasdaq: LTNX), a leading provider of public key infrastructure (PKI)-based Internet security solutions, today announced two additional biometric identification capabilities combined with digital signatures and smart cards, enabling stronger identity authentication for electronic data security applications.  In addition to the company’s recently demonstrated iris scan technology, users can now evaluate voice or handwritten signature recognition for authentication when digitally signing a document or obtaining access to secure web pages.  Voice and signature recognition are “mannerism” biometrics, where considerations include the tone and inflection of your voice, and the speed and pressure with which a signature is written.

According to the International Biometrics Group, an industry research firm, 1999 annual sales of biometric devices are expected to rise to $594 million in 2003 from $58 million last year.  Eye scan, voice recognition and signature verification totaled 25 percent of sales.

“Litronic is demonstrating what can be done with biometrics when everybody else is just thinking about it,” said Bill Holmes, vice president of marketing for Litronic Inc.  “We were the first to smart-card enable browsers and now we are the first to implement these biometric solutions for PKI and smart cards — we are constantly looking for ways to deliver a better, more robust security solution.”

“By combining several forms of biometrics with PKI and smart cards, we have increased the number of practical application of this technology in corporate environments,” stated Holmes.  “We’ve proven that biometrics with PKI is a working technology and are actively pursuing opportunities to work with partners or early adopters to develop this technology into products.”

The smart card integration of voice and handwritten signature recognition functions are similar to Litronic’s iris scan technology.  The smart card will have the appropriate biometrics template residing on it and will ultimately deliver the final match and authorization.  The remaining components of the system – capture, manipulation, enrollment and extraction – will be incorporated directly in the smart card reader so none of the biometric information is transported through or manipulated by the PC client.

Since the biometric process is self-contained in the reader, Litronic will be developing the highest security available for e-commerce and anticipates having authentication systems with FIPS 140-1 level 3 validation, a rigorous government standard.  Litronic’s biometrics technology will support its commitment to providing “open” products that are interoperable with leading standards.  The company will be adopting domestic and international industry standards for biometrics and PKI integration as they evolve.

Using Microsoft Windows Powered Smart Cards, Litronic is integrating technology from three developers to implement biometrics recognition with PKI.  Sensar’s camera is being used to deliver iris scan biometrics,  Cybersign is used for handwritten signature recognition and Voice Security Systems for voice verification.

ABOUT LITRONIC

Litronic provides professional Internet data security services and develops and markets software and microprocessor-based products needed to secure electronic commerce business transactions and communications over the Internet and other communications networks based on Internet protocols.  Litronic’s data security products use an advanced form of computer security technology referred to as public key infrastructure (PKI).  Litronic’s Internet security products can be used with World Wide Web browsers, including Netscape Communicator and Microsoft Internet Explorer.  Additional information on Litronic is available on the company’s Web site at http://www.litronic.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

With the exception of historical information, the matters discussed in this news release relating to the projected growth of e-commerce and of the Internet security market; and to Litronic’s ability to penetrate the Internet security market and to integrate its June 1999 acquisition of Pulsar and to transition to commercial markets are forward-looking statements that involve a number of risks and uncertainties, including competition from companies with greater financial and technical resources than Litronic, the difficulty in continuing technical innovation (particularly in light of the competitive market for technical personnel), the effect of differing corporate cultures on the integration of Litronic’s June 1999 acquisition of Pulsar and the acceptance of Litronic’s products in the commercial marketplace.  Other risks inherent in Litronic’s business are described in its Securities and Exchange Commission filings, including the Company prospectus.  Litronic undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.

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