April 5 , 2005

FOR IMMEDIATE RELEASE

CipherOptics and McDATA Announce Strategic Partnership to Provide Secure Storage Over IP Networks

CipherOptics awarded OPENready(R) Tested Partner status

RALEIGH, N.C., April 5 /PRNewswire/ -- CipherOptics Inc., the leading innovator of gigabit-speed IPSec appliances, today announced that it has been awarded OPENready® Tested Partner status by McDATA® Corporation (Nasdaq: MCDTA - News, MCDT - News), a leading provider of storage networking solutions. CipherOptics and McDATA will partner to provide secure storage extension over IP networking solutions to enterprises and government agencies.

Participation in this program qualifies CipherOptics SG1001 IPSec appliances for deployment in storage networks that utilize McDATA's Eclipse(TM) 1620 SANRouter.

Many organizations rely on CipherOptics SG1001 IPSec appliances to protect data in motion at full wire-speeds, with virtually no latency, over Gigabit Ethernet networks. CipherOptics SG1001 IPSec appliances ensure data in motion is protected without the usual encryption bottlenecks that slow down the network and affect overall system and application performance.

"Many of McDATA's customers have remote data centers where critical electronic data is stored. Keeping that data secure while it travels at high speed to those remote locations, without introducing latency has been a challenge," Brandon Hoff, security product manager, McDATA. "With CipherOptics IPSec appliances, customers can deploy end-to-end protection for confidential information while it travels over storage IP networks -- with minimal impact on network or application performance."

"While there are many obvious benefits to IP networks, there are also inherent vulnerabilities. CipherOptics eliminates the risks to data in motion, enabling secure, high-speed storage extension over IP networks," said Ron Willis, CipherOptics president and CEO. "We look forward to working together to deliver secure, world-class storage networking solutions to our customers."

About CipherOptics
CipherOptics, the leading innovator of gigabit-speed IPSec appliances, protects data in motion as it travels over IP networks. With virtually no latency and robust industry-standard AES encryption capabilities, CipherOptics IPSec appliances outperform router and firewall add-on solutions in total cost of ownership, performance, network transparency and ease of implementation.

The CipherOptics family of IPSec appliances is field-proven in some of the most security sensitive networks in the world, and has received FIPS-140-2 Level 2 validation. We enable financial institutions, global enterprises and government agencies to secure all data in motion while maximizing broadband network capacities at a very low total cost of ownership.

Privately-held CipherOptics is based in Raleigh, North Carolina. In 2004, the company closed on Series C funding from Adams Capital Management, Kodiak Venture Partners, Origin Partners L.P. and Axiom Venture Partners L.P. For more information about CipherOptics visit the company website at http://www.cipheroptics.com .