Here's AT&T's announcement on the Clipper. AT&T TO INCORPORATE NEW 'CLIPPER' CHIP INTO SECURE COMMUNICATIONS PRODUCT LINE GREENSBORO, N.C., April 16 AT&T (NYSE: T) said today it is moving to improve the security and privacy of telephone communications by incorporating a just-announced new U.S. government technology for voice encryption into its secure communications product line. AT&T will use the Clipper chip, announced today by President Clinton as a new technology for voice encryption, in all of its secure telephone products except those specially designed for government classified customers. The Commerce Department has announced a six-month timetable for the final certification of Clipper. "AT&T is pleased to be the first company to publicly commit to adoption of the Clipper chip," said Ed Hickey, AT&T vice president, Secure Communications Systems. "We believe it will give our customers far greater protection in defeating hackers or eavesdroppers attempting to intercept a call. "And now all commercially available AT&T voice encryption products will be compatible with each other, a major step forward in bringing secure communications capabilities to the business community." In standardizing AT&T voice encryption products on the Clipper chip, AT&T will include the algorithm in the Telephone Security Device as well as in the Secure Voice/Data Terminal. The AT&T Telephone Security Device is a compact, lightweight unit that brings advance encryption technology to conventional land-line and cellular telephones. It provides a powerful, convenient and reliable way to protect the most sensitive telephone conversations. The device works with a conventional land-line or transportable/mobile cellular phone. It turns the phone's signal into a digital stream of encrypted information that is decrypted by a Telephone Security Device attached to the phone at the receiving end of the call. The AT&T Telephone Security Device connects easily to desk telephones or tranportable or mobile phones. It weighs 1.5 pounds and is 7 inches long, 4.5 inches wide and 1.5 inches high. And it's as easy to use as it is portable. The AT&T Secure Voice/Data Terminals are desktop telephones that provide encryption for both telephone calls and data transmissions. These AT&T secure communications products use an enhanced voice encryption technique that provides very high voice quality. This technology allows calls placed with these products to approach the voice quality of normal calls. To further enhance interoperability, AT&T will consider licensing to other manufacturers its enabling technologies for interoperability. Interoperability of encryption devices requires common technology beyond the use of a common encryption algorithm, specifically common methods of digital voice encoding and signaling. AT&T has already performed integration tests with Clipper chips manufactured by the government's supplier, Mykotronx Inc., of Torrence, Calif., and is preparing to integrate the chip into the manufacturing of its secure products. AT&T's Clipper-equipped telephone security devices will be available to customers by the end of the second quarter. The federal government intends to adopt the Clipper chip as the standard for voice encryption to help protect proprietary information, protect the privacy of personal phone conversations and prevent unauthorized release of data transmitted electonically. At the same time, use of the Clipper chip will preserve the ability of federal, state and local law enforcement agencies to intercept lawfully the phone conversations of criminals. "Adoption of Clipper will support both the government's efforts to protect the public and the public's right to privacy," Hickey said. AT&T Secure Communication Systems provides products to protect voice, data, fax, cellular and video communications. It also engineers and integrates secure communications applications. Its customers include the governments of the United States and other nations as well as major corporations around the world. AT&T Secure Communications Systems is headquartered in Greensboro. For more information about the AT&T Telephone Security Device 3600 and other AT&T Secure Communications Products, call David Arneke at 919-279-7680. CONTACT: David Arneke of AT&T Secure Communications Systems, 919-279- 7680,or after hours, 919-273-5687, or Herb Linnen of AT&T Media Relations, 202-457-3933, or after hours, 202-333-9162