LSI Logic Storage Systems, Musicrypt And Meganet Announce Secure Digital Media Management Solution

LSI Logic Storage Systems, Inc., a leading supplier of innovative storage solutions for the open enterprise, today announced plans
to develop a secure, digital media management solution for the entertainment industry through an alliance with Musicrypt,
a progressive enabler of content-secure distribution of music on the Internet, and Meganet, an innovator in data security solutions.

LSI Logic Storage Systems, Musicrypt And Meganet  Announce Secure Digital Media Management Solution

Alliance will enable secure and efficient delivery of digital entertainment over the Internet.

Milpitas, Calif., November 5, 2001 --- LSI Logic Storage Systems, Inc., a leading supplier of innovative storage solutions for the open enterprise, today announced plans to develop a secure, digital media management solution for the entertainment industry through an alliance with Musicrypt, a progressive enabler of content-secure distribution of music on the Internet, and Meganet, an innovator in data security solutions.

The new alliance provides the entertainment industry with the first enterprise-wide solution for secure, centralized control of media delivery and field-level administration of rights assigned to any digital property or licensed user for both online and offline use, including subscription models, streaming, file downloading, and limited free-playtime scenarios.

"During the next few months, LSI Logic Storage Systems, Musicrypt and Meganet will begin to integrate their respective technologies," said Greg Reitman, worldwide marketing manager for entertainment, LSI Logic Storage Systems. "The end result will be a complete business solution for secure digital entertainment delivery that spans digital enterprise storage management, encryption, and media content protection."

Existing digital rights management solutions do not offer portable rights or permit secure offline use of protected properties in subscription-based architectures. The ability to permit offline subscription access to downloaded media creates greater efficiencies for host systems by decreasing the need for consumers to continually open live listening sessions just to audit their licensed media. System efficiency is also increased through Musicrypt's biometric digital rights technology, which allows users to exchange media properties and audit them in a limited manner before requesting complete rights to the media. "We are delighted to add LSI Logic Storage Systems to our growing list of partners," said John Heaven, president and CEO of Musicrypt. "LSI Logic Storage Systems' unsurpassed storage solutions, combined with Musicrypts BRM and Meganets VME will provide a world-leading end-to-end solution for management of digital media from creation to consumer."

Musicrypt is a progressive enabler of user-friendly and content-secure distribution of music on the Internet. Musicrypt's BRM (biometric digital rights management) technology addresses all of the major strategic building blocks of rights security, compensation, and ease of consumer use. BRM is the first secure digital music delivery system that enables content portability. It can operate transparently at the consumer's main computer station and can be adapted for use with any file type or media player/reader software.
"This partnership will give rise to a powerful new complete answer to online counterfeiting," said Michael Vaknin, executive vice president, Meganet. "It is an ideal relationship because all of the companies have combined their expertise to offer customers a total solution package that will reduce costs and time while shortening the time to market."

Meganet Corporation is a client-focused, data security company committed to the continual development of revolutionary technologies and innovative information security solutions. Meganet has developed a revolutionary symmetric encryption algorithm called Virtual Matrix Encryption (VME). The power of VME results from a unique data mapping technology that creates exceptionally random cipher text and from its ability to use a million-bit key.

The LSI Logic MetaStor® family of storage systems scales a thousand fold, from 36 gigabytes to 39 terabytes of online data storage, and now features two gigabit Fibre Channel connectivity. In direct attach, SAN or NAS configurations, MetaStor systems support AIX, CIFS, HP-UX, http, IRIX, Linux, Mac®OS, NetWare, NFS, Solaris, Windows NT, and Windows 2000.

About Meganet
Meganet Corporation is a client-focused data security company committed to the continual development of revolutionary technologies and innovative information security solutions. Meganet has developed a revolutionary symmetric encryption algorithm coined as Virtual Matrix Encryption (VME). The power of VME results from a unique data mapping technology that creates exceptionally random cipher text and from its ability to use up to a million-bit key. Meganet aims at propelling VME to be the industrys standard for encryption. Established in 1997, Meganet is a privately held California corporation headquartered in Encino, Calif., with offices in New York, Washington and Tel Aviv.

About Musicrypt
Musicrypt is the most progressive enabler of user- friendly and content-secure distribution of music on the Internet. Musicrypt's BRM technology addresses all of the major strategic building blocks of rights security, compensation, and ease of consumer use. BRM eliminates password sharing and cracking, without sacrificing user mobility or privacy, and since BRM verifies users by their keystroke patterns when typing, no additional biometric hardware is required. The absence of a download location lockdown makes BRM the first secure digital music delivery system that enables content portability. BRM can operate transparently at the consumers' main computer station, or with biometric log-ins enabling the recognition of valid users at alternate locations. File sharing systems, such as Napster, can provide legitimate subscription services by using Musicrypt's technology. The solution can be adapted for use with any file type or media player/reader software. Musicrypt is an Ontario registered corporation with offices in Toronto and Paris.

About LSI Logic Storage Systems, Inc.
LSI Logic Storage Systems, Inc., a subsidiary of LSI Logic Corporation, builds high performance, highly scalable storage systems and sophisticated, multi- vendor storage management applications for resource optimization and consolidation in the open enterprise. For more information, please call 1-888-638-2786 or 1-408-433-8686 or visit www.lsilogicstorage.com.

About LSI Logic
LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of communications, consumer and storage semiconductors for applications that access, interconnect and store data, voice and video. In addition, the company supplies storage network solutions for the enterprise. LSI Logic is headquartered at 1551 McCarthy Boulevard, Milpitas, CA 95035, 866-574-5741 (within U.S.), 719-533-7679 (outside U.S.), http://www.lsilogic.com.

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