Litton PRC And XTec Form Strategic Alliance To Bring Affordable, Breakthrough Security Technology To The Marketplace

Enabling Technology Allows Agencies to Process, Store and Manage Proprietary Information in a New and Revolutionary Manner

MIAMI, FLORIDA, February 23, 1999 -- XTec, Inc. and PRC, Inc. a subsidiary of Litton Industries (LIT: NYSE), today announced a strategic alliance to bring to the marketplace, a new, affordable breakthrough technology that enables customers to securely process, store and manage proprietary information more securely than in the past. XTec's Mediametric® technology creates a Mediametric Fingerprint® for a magnetic striped or memory encoded "token" (card or other device) which can never be duplicated. Information is stored efficiently and securely on the token eliminating the need for a processor on the card when the processor is only used to protect card information reducing costs associated with the processor. Moreover, the same technology can be used to secure any network or stand alone device. Once installed, systems and applications will be able to recognize the Mediametric technology, but be completely backwards compatible while fully securing the application or system. Where processors are needed on a card for additional functions, XTec's Mediametric® technology can enhance security for both the card and the processor.

"We look forward to incorporating this innovative new technology in our suite of offerings to secure on-line information, as well as, physical systems," said Ron Oxley, Vice President for Marketing at Litton PRC. "In our continuing quest to enable our customers to set the pace in a rapidly changing world, this technology has several uses, all of which will greatly enhance an organization's ability to make its critical information and systems tamperproof economically."

"Litton PRC is our partner in all strategic government applications," said Albert Fernandez, President and CEO of XTec, Inc. "The Company has recognized that the Mediametric technology has a major place in a wide array of government applications. In fact, this technology is thought by many to be the missing security link to the success of electronic commerce."

Mediametric technology can also play a substantial role in electronic benefits transfer and electronic commerce. Since the token carrying the technology can establish separate, highly secure domains or compartmentalize information, one card could accommodate multiple kinds of information - state and local benefits, social security information, etc. - and purses, for a fraction of the cost of processor cards.

XTec, Incorporated, is an independent developer, producer, and licensor of security solutions for a wide range of government and commercial uses. Headquartered in Miami, Florida, the Company's premier breakthrough technology, Mediametrics is a peerless, non-algorithm dependent technology founded on the premise that it will always be possible to measure a physical quantity more precisely than it can be duplicated. The Mediametric Fingerprint, enables business and organizations in the public and private sectors to securely process, store, and manage proprietary information. Key areas of focus for XTec include electronic commerce, domain and key management, transaction and data processing, access control, communications, and information systems. XTec holds a number of patents related to electronic security.

Litton PRC, a leading provider of information technology-based solutions for the US government clients, is one of the family of companies that comprise Litton Industries' Information Systems Group. Litton PRC is headquartered in McLean, Virginia. The Company employs more than 5,500 in 150 offices nationwide, and is ranked as one of the Federal government's top 10 contractors.

Litton Industries (LIT: NYSE) is a leader in worldwide technology markets for advanced electronic and defense systems, and is a major designer and builder of surface combatant ships for the US Navy and allied nations.