Eurotech Ltd. (EUOT) (EUOT)

[jmhollen]

EUROTECH, Ltd. Enters Into Cryptography Licensing Agreement for $1M with Etelix, U.S.

FAIRFAX, Va., Jan 9, 2002 (BUSINESS WIRE) -- EUROTECH, Ltd., (Amex:EUO), announced today a licensing agreement for its cryptography technology with Etelix, U. S., a subsidiary of Etelix, Ltd. (Etelix).

Eurotech, through its subsidiary Crypto.Com, Inc., has been working on the advanced development of this unique and revolutionary cryptography technology since its acquisition in 1999.

According to Don Hahnfeldt, Eurotech CEO, "Early on we recognized the potential for commercial applications of this technology to improve security of communications and data. We feel there is substantial need for this product in the telecommunications field, the Internet, and in financial markets."

The Etelix licensing agreement represents the first commercial market opportunity for this cryptography technology.

The technology is unique in that it is a double cipher, keyless transmission, communication system, which transmits encrypted data during the communication session containing no key vulnerable to compromise. This provides for indecipherable transmissions and represents a new class of cipher.

The product can be implemented in a software only configuration, which can then be embedded into an existing software communication product such as a secure router or firewall.

The agreement with Etelix calls for a product development period, which is followed by adoption of the product into its telecom platform. It also gives Etelix non-exclusive rights to sublicense the technology throughout the global telecom marketplace.

Eurotech will receive a $1M cash payment upon delivery of the product for adoption into the Etelix platform, or upon an Etelix sublicensing agreement with a third party. Eurotech will receive 50% of licensing and royalty revenues from Etelix sublicensing agreements. Delivery is projected within two months.

About Etelix: Etelix is one of only five licensed communication providers operating in Venezuela, which recently underwent deregulation of its communications industry. Etelix is one of the few companies that will benefit by utilizing VOIP (Voice Over Internet Protocol) technology.

VOIP is estimated to comprise over 75% of all worldwide voice services by year 2007 as reported in analysis performed by Frost and Sullivan in May 2001. Etelix was founded in 1999 and has established gateways in multiple cities throughout Venezuela. It will soon expand to other countries in South America. It is a member of ITXC, which is one of the world's largest VOIP clearinghouses.

Some of ITXC's key affiliates are: the Ameritech division of SBC, China Telecom, Verizon, and Korea Telecom.

Etelix CEO Loren Friedman says, "Etelix is committed to becoming a major player in the VOIP marketplace. Our ability to introduce this cutting edge encryption technology will keep us one step ahead of our competition in the telecom industry. We are very excited about our partnership with Eurotech".

For additional information about Eurotech and its technologies visit the Company website www.eurotechltd.com.

For More Information Contact Dawn Van Zant at [e-mail] or Call Toll Free 800/665-0411.