CIPHER SYSTEMS EXPANDS THEIR EMBEDDED ENGINEERING DESIGN SERVICES IN SUPPORT OF THE GROWING GOVERNMENT AND DEFENSE BUSINESS.

For more information, contact:
John Schlottmann (503) 617-7447
info10@cipher.com

Beaverton, OR- In mid 2005 Cipher Systems was approached by a major U.S. Defense Contractor to embark on the design, development and manufacturing of an innovative military radio sub-system design. Cipher's engineering team was able to leverage the high value design process model, originally created and launched to support existing commercial & industrial customers. From 2005 - 2007, Cipher executed this program and Cipher's customer has called this program "a flawlessly executed success" (VP of Engineering-Defense Contractor). As a result, Cipher Systems was asked to continue work on the project, providing additional engineering support, which focused on new features sets for the product.

Based on recent design wins and encouragement from key defense contractors, Cipher Systems launches the formation of a new Government and Defense business Unit. The new business unit will leverage over twenty years of successful embedded engineering, wireless design and product development supporting the commercial and industrial market place.

Brian Bishop, President and CEO of Cipher Systems, Inc. states, "From the feedback we have received, the need exists in this market for a company with our combined embedded engineering and wireless design capabilities. Cipher Systems is pleased to integrate this new government and defense business unit into the Cipher Systems family of services." "Cipher will utilize the existing company infrastructure and staff to kick-start this new effort and we expect immediate growth from this addition to the company. We are already working on several exciting new engineering projects in this market segment and are well poised to start immediately on many additional projects."

About Cipher Systems, Inc.

Cipher Systems is an ISO-9001:2000 registered Oregon Corporation that specializes in complete product design solutions for their customers. Cipher's senior level team consists of software, hardware, RF and mechanical engineers available to tackle even the most complex product designs. Cipher has incorporated complex design tools into their process to ensure quality and reliability at every level. These tools consist of hardware design and development software, embedded software development suites, electro-magnetic simulation software, circuit simulation tools and sophisticated product data management tools. For more information visit: www.cipher.com