July 13, 1998
For Immediate Release

Technical Communications Corporation
100 Domino Drive
Concord, MA 01742 - 2892
(978) 287 - 5100
Contact: Janet LeClair, Investor Relations

CONCORD, MASSACHUSETTS -- Technical Communications Corporation (NASDAQ:TCCO), a leader in securing mission-critical communication networks, today announced the launch and immediate availability of KEYNET 2.0 and the Cipher X 7100 - its first encryption system specifically designed to provide high level protection for corporate, mission-critical wide area network (WAN) communications. TCC is a leader in securing highly sensitive military networks. Now, this high quality encryption technology is available to protect the growing number of corporate WAN applications.

The KEYNET 2.0 secure management application and the Cipher X 7100 encryption unit form a comprehensive security system that protect sensitive information transmitted over public frame relay networks. Frame relay is a fast growing data communications service due to the cost savings it provides over older network technologies such as X.25 and leased lines. It also provides quality of service guarantees that make it a better choice than the unreliable Internet for delivery of mission-critical data. Frame relay service revenue in the United States was over $2 billion in 1997 and is projected to grow to over $4.5 billion in 1998.

Additionally, TCC announced its first shipment of KEYNET 2.0 to the Securities and Exchange Commission (SEC). KEYNET will allow the SEC to securely, easily, and cost effectively manage TCC’s Cipher X 7100 frame relay encryption units that are protecting the privacy of sensitive information sent between SEC sites.

Carl H. Guild, Jr., TCC’s Chairman and CEO, stated, "The Securities and Exchange Commission contracts enhance TCC's position as a premier supplier of encryption equipment to the U.S. Government. At the same time, the Cipher X and KEYNET system is TCC's first solution designed to address the needs of both corporate and government customers. Initial interest from financial institutions and large corporations for our new system has been positive. As a result, we are optimistic that it will be accepted in the market and enable us to penetrate the corporate marketplace."

The Cipher X 7100 frame relay encryption system has been fully engineered to provide the high level protection required by demanding mission-critical applications, while maintaining optimum network performance. For maximum security, the Cipher X 7100 is a hardware-based, self-contained unit. It is also network transparent - no network modification is required, no overhead is incurred, and no user training is needed. A single Cipher X system can control access for 1,024 virtual circuits making it a very cost effective solution.

KEYNET enables the key management, configuration, monitoring and diagnostics of geographically dispersed Cipher X encryption units from a central location. It provides the easiest way of creating security groups and monitoring their performance on the market today, while meeting the optimum communications protection and high availability requirements of mission-critical networks.

KEYNET also reduces network life cycle costs by providing a lower cost of operation AND increasing network performance. There is NO need to incur the extra cost and delay of operation to send technicians to encryption units located over a wide geographic area.

All of KEYNET’s cryptographic processing is handled in a hardware-based, tamper-resistant ‘Security Vault’ to ensure high-level communications protection against hackers, viruses etc. Additionally, TCC’s KEYNET is the only product that meets the ANSI X9.17 banking security standard for centralized key management. This standard defines ‘Prudent Business Practice’ and provides liability protection for banks.

Some key features of KEYNET include: an intuitive drag and drop user interface that simplifies the adding and deleting of encryption units and forming key groups; a low-cost platform based on Windows NT; encrypted SNMP sets to prevent spoofing attacks by hackers; integration with third party enterprise management applications; status at a glance capability via color-coded icons on a key management map; and a series of enhanced traps that proactively notify KEYNET of a network or security problem.

The Securities and Exchange Commission (SEC) awarded TCC contracts for the supply of TCC’s Cipher X 7100 encryption units, as well as the KEYNET 2.0 secure management application.

These orders allow the SEC to fully encrypt their frame relay traffic, which moves over the U.S. Government's FTS 2000 data network, and manage network security from a central location. The SEC placed these orders with TCC after purchasing a "pilot order" of TCC's Cipher X 7100 systems for product evaluation.

"The SEC is acknowledged as a demanding client by both the federal government and the commercial marketplace. We are pleased that such an organization has recognized the quality of our high-speed, high security encryption systems." commented Mr. Guild.

Technical Communications Corporation’s products and systems secure mission-critical networks for governments, corporations and financial institutions around the world. With over 35 years of experience, TCC is the trusted supplier for organizations that place a high value on their data and its successful transmission. 

Matters discussed in this news release, including any discussion of or impact, expressed or implied, on the Company’s anticipated operating results and future earnings contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. The Company’s operating results may differ significantly from the results indicated by such forward-looking statements. The Company’s operating results may be affected by many factors, including but not limited to, the fulfillment of customer orders, the Company’s ability to retain and motivate key technical, sales, marketing and manufacturing personnel, and the possibility of political instability in the Company’s foreign markets. These and other risks are detailed from time to time in the Company’s filings with the Securities & Exchange Commission.