MINNEAPOLIS, July 11 /PRNewswire-FirstCall/ – Datakey Inc. (Nasdaq: DKEY)( http://www.datakey.com ), a trusted developer of smart card solutions for securing

enterprise-wide personal identification, today announced that Datakey CIP, the
company’s cryptographic smart card, reader and software kit, is being deployed
throughout a European country to secure the online submission of commercial
documents.

All businesses are required to submit to their provincial Registration
Authority a public record of legal and financial data, which ensures the
security of commercial trade. Through the use of advanced authentication
software combined with the strong protection and two-factor authentication
enabled by Datakey smart card technology, Registration Authorities are now
able to securely complete this submission and registration process online,
taking advantage of significant time and cost savings.

Initially, 10,000 Datakey smart card kits have been purchased for
deployment to users of this commercial registration process, with a potential
for deployment to an additional 10,000 users.

“This Datakey smart card deployment is a great example of how enterprises
are making the most of the Internet – transitioning to paperless business
processes that save time and money, but doing so with technology that enables
the utmost trust and security,” said Carl Boecher, president and CEO, Datakey.
“Datakey is pleased to deliver the trusted, reliable smart card technology
that is enabling secure e-business for this particular country and its
commercial base.”

About Datakey Inc.

Datakey Inc. ( http://www.datakey.com ) focuses on delivering reliable smart
card-based solutions for securing enterprise-wide personal identification.
Datakey smart card technology is trusted to:

– Safeguard a user’s digital identity.

– Authenticate and control user access to enterprise networks, applications and resources.

– Protect the integrity and privacy of data shared over corporate networks and the Internet.

Customers and partners alike rely on Datakey technology in a full range of
enterprise applications, including password management, host authentication,
Windows log-on, VPN access, web authorization, desktop security, corporate
badge and building access, biometric integration, public key encryption,
digital certificates and digital signatures.

Forward-Looking Statements
The expectation that Datakey smart card kits will be deployed to an
additional 10,000 users is a forward-looking statement subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected. In order to achieve deployment to an additional
10,000 users, Datakey must continue to offer information security products as good or better from a technological perspective than those of competitors and at competitive prices.