Press Release

Calyptix Secures Intellectual Property Rights

UNC Charlotte Partners with Security Company

CHARLOTTE, NC - UNC Charlotte and Calyptix Security Corporation have completed a transaction transferring rights to an extensive intellectual property portfolio covering enhanced computer security solutions to Calyptix.

"UNC Charlotte has been a tremendous partner for Calyptix since inception and we look forward to growing this company. This technology immediately positions Calyptix to deliver a dynamic, comprehensive network security solution to the small and medium business market," states Ben Yarbrough, chief executive officer, Calyptix. "In addition, this IP portfolio includes exciting future growth opportunities with strong platforms to develop database and application level security solutions."

There has been a flurry of activity at Calyptix in recent weeks. This transaction with UNC Charlotte closed in late September 2005. Ben Yarbrough joined the company as CEO in July 2005, and the company recently closed on an undisclosed level of seed round financing that is expected to provide necessary capital to take the company through the final stages of development.

Calyptix is developing Access Enforcer™ as its first offering to the marketplace. Access Enforcer™ is a proprietary, dynamic Internet security appliance that provides comprehensive protection for computer networks from unknown and known malware and attacks, including viruses, Trojans, worms, denial of service attacks, spam, spyware, stealth attacks, and port scans. Access Enforcer™ deploys the Company's proprietary dynamic intrusion prevention system, acquired from UNC Charlotte, as a "plug and play" security appliance that is easily installed, activated and managed without requiring advanced security or network experience.

According to Mark Wdowik, executive director, Office of Technology Transfer at UNC Charlotte, "In the last five years, 21 startups have emerged from UNC Charlotte; Calyptix is one of these companies and one about which we are very excited. Having companies like Calyptix grow out of UNC Charlotte is great for the University, great for the region and great for economic development."

Calyptix Security was founded in 2002 and was recognized at UNC Charlotte's Five Ventures™ competition in 2003. Calyptix is finalizing its product, Access Enforcer™, for commercial launch in early 2006. Founded by two international security experts, Dr. Yuliang Zheng and Lawrence Teo, Calyptix is headquartered in Charlotte, NC.