MICROSOFT PUBLISHES SPECIFICATIONS DESIGNED TO HELP IMPROVE SECURITY ON THE
INTERNET

ATLANTA -- SEPT. 27, 1995 -- Microsoft Corp. today announced the
publication of two specifications that address key Internet security
issues. Software designed with these specifications will enable developers
to incorporate improved security technology into their applications,
giving businesses and consumers confidence that their transactions and
communications will be secure.

The two specifications -- SECURE TRANSACTION TECHNOLOGY (STT) and PRIVATE
COMMUNICATION TECHNOLOGY (PCT) -- were published today on the Internet. To
help encourage widespread adoption of STT and PCT, Microsoft is making the
specifications available at no charge to all software developers,
businesses, card brands and financial institutions that want to create
STT-compliant and PCT-compliant applications.

"We set out a year ago to build STT, a security system that meets the
strict requirements of the payment-card industry. STT's design uses
sophisticated cryptographic techniques to help protect and authenticate
consumers, merchants and financial institutions that use bank cards to
conduct business on the Internet," said Craig Mundie, senior vice
president of the consumer systems division at Microsoft. "After doing so,
we felt we could also apply our expertise to the Internet's need for
general-purpose security. PCT builds upon Secure Sockets Layer by
incorporating strong authentication and other technologies we developed
for STT."

STT, jointly developed with Visa International, is supported by the
Internet Shopping Network, RSA Data Security Inc. and Spyglass Inc. The
PCT specification is supported by Cylink Corp., FTP Software Inc.,
Internet Shopping Network, NetManage Inc., OpenMarket Inc., Spyglass Inc.
and Starwave Corp.

"We cannot afford to have doubt cast over the ability to conduct business
on the Internet," said Marc Miller, executive vice president of marketing
and business development for Spyglass Inc. "We applaud Microsoft for
approaching the security issue as it should be approached in an open forum
within the Internet community. Our whole business model is based on
partnerships. We're happy to be working with Microsoft to provide an open,
specifications-based solution to help ensure the viability of this
exciting new medium."

The Secure Transaction Technology specification, jointly developed by
Microsoft and Visa, is designed to provide a secure method for handling
credit-card transactions across private and public networks. By providing
a technology that can be completely integrated with the current bank-card
system, STT will serve as a reliable payment system for software providers
to incorporate into their products. STT also preserves the branded
transaction relationships that merchants and financial institutions have
with their customers.

The Private Communication Technology specification is designed to secure
general-purpose business and personal communications on the Internet. PCT
includes features such as privacy, authentication and mutual
identification. As a secure communications technology, PCT builds on the
earlier advances embodied in Secure Sockets Layer (SSL). PCT enhances SSL
by separating authentication from encryption. This means that PCT allows
applications to use authentication that is significantly stronger than the
40-bit key limit for encryption allowed by the U.S. government for
export.

"The Internet Shopping Network is committed to providing the most secure
online shopping environment possible," said Boris Putanec, vice president
of engineering for the Internet Shopping Network. "STT delivers one of the
highest levels of security and authentication for shopping transactions,
boosting electronic commerce."

Microsoft plans to incorporate both STT and PCT into its own products, such
as the Microsoft Internet Explorer 2.0, which ships with the Window
operating system, and is encouraging other software developers to do the
same.

The specifications released by Microsoft include use of encryption
capabilities based on technology from RSA Data Security Inc.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of
products and services for business and personal use, each designed with
the mission of making it easier and more enjoyable for people to take
advantage of the full power of personal computing every day.
 
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