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4. January 24, 2000

Safevote Discusses Security of Internet Voting with White House�s E-Commerce
Group
WASHINGTON D.C. -- Representatives of Safevote, Inc. met last week with
President Bill Clinton�s E-Commerce Working Group, at the White House.

Safevote, Inc., of San Rafael, Calif., highlighted the differences between
e-commerce and the ability to vote over the Internet, while also announcing
its initiative to lead the industry sector to form an Internet voting
technology alliance, both as a call for furthering the discussion and for
peer review of current technologies used for Internet voting.

�The ability to vote over the Internet presents an entirely different set of
challenges than those presented by shopping or banking or even in proxy
voting on the Internet,� said Dr. Ed Gerck, vice president of technology for
Safevote. "People not familiar both with Internet technology and with public
elections might however believe that e-commerce solutions can be adapted to
Internet voting.  But that is far from true. Internet voting is dependent on
voter anonymity, secret transactions, correctness for all transactions, and
more.  For example, in credit card transactions fraud is compensated by
insurance. This situation is not acceptable in elections. Also, an auditor
must be able to reproduce the results while ensuring equally the anonymity
of the voter and the secrecy of the vote.�

The White House�s E-Commerce Working Group, overseen by Vice President Al
Gore, was formed to advise President Clinton on matters affecting
e-commerce, including Internet voting. In the United States, according to
interviews with election officials conducted by Safevote, a single vote
costs U.S. taxpayers between $1 and $7 -- in elections conducted primarily
with paper ballots. Some jurisdictions throughout the country are
considering a switch to electronic -- and ultimately, to Internet � systems.

�When you are talking about an election, fraud cannot be handled in terms of
statistical failure covered by insurance � we need a much higher level of
assurances and they need to be fail-safe,� commented Kurt Neumann, newly
appointed vice president of marketing for Safevote.

Safevote technology for Internet voting is considered to be at the leading
edge, employing multi-party decision systems. The technology provides a
comprehensive framework for Internet decision-making with applications for
voting, polling, public elections, bidding, consensus assessment and a
variety of solutions. Safevote, in San Rafael, California, can be reached at
+1-415-482-9300 or found on the Web at http://www.safevote.com





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3. January 20, 2000


Brazilian Internet Voting Vendor Signs Contract
By Margret Johnston

IDG News Service, Washington Bureau

WASHINGTON (01/20/2000) - A Brazilian network security company with a
decade-long relationship with the country�s election authority has signed a
contract with the U.S. company Safevote Inc. that will give Brazilians their
first opportunity to cast ballots over the Internet in this year�s federal
election, the two companies said today.

Safevote, of San Rafael, California, will provide software tools and
protocols necessary to ensure that ballots cast over the Internet are
secure, anonymous and authenticated, Kurt Neumann, vice president of
marketing for Modulo Security Solutions, said after a symposium on the
future of Internet voting sponsored by the Brookings Institution.

In Brazil, where voting is mandatory, an estimated 90 million people are
expected to vote [electronically] in the November elections for the Senate
and the House of Representatives. That election will provide the first
opportunity for Brazilians to cast ballots over the Internet. Initially,
however, only about 200,000 absentee voters will be able to cast their
ballots over the Internet at designated voting stations.

�This will be at embassies, schools and other polling stations where there
will be a means of authenticating and monitoring the process,� Neumann said.
�You�ll have a lot of the same things you have with current system, the
difference is the votes will be transmitted over the Internet.�

Brazil this year will spend about US$200 million on expanding its electronic
voting system, including the purchase of 300,000 PCs, Neumann said. All the
machines are equipped with a network port, which will make it possible for
them to connect to the Internet in the future, he said. Though Internet
voting will be limited to absentee ballots this year, the technology Brazil
is putting in place can be applied on a much larger scale, Neumann said.

Modulo, whose key business in Brazil is in providing network system
integration for online banking, has played a role in Brazil�s electronic
voting network since 1990. Safevote�s software and protocols run on any
operating system, including the proprietary Unix operating system currently
in use in Brazil�s electronic voting network, Neumann said.

�We think it�s the soundest security architecture. That�s why we made the
deal with Safevote,� Neumann said.

Another advantage to Safevote�s technology, according to Alberto Bastos,
chief operating officer of Modulo, is that it allows Modulo to provide an
Internet voting system without changing the current user and management
interfaces.

Cisco Systems Inc., Microsoft Corp., Entrust Technologies Inc. and Compaq
Computer Corp. also provide hardware and software to the voting system.
Cisco co-sponsored the symposium, and the company�s chief executive officer,
John Chambers, participated in the panel discussion along with the governors
of New York and California.

Chambers, and Govs. George Pataki of New York and Gray Davis of California,
said they believed that Internet voting would become a reality in the United
States within a matter of years, but they also cautioned that there is a
need to maintain the integrity of the voting process and ensure that people
with access to computers don�t gain an unfair advantage.

�We will probably start off evolving this process, first putting this
capability in the polling stations and automating what�s already there,�
Chambers said.

Modulo can be found on the Web at http://www.modulo.com; Safevote, in San
Rafael, California, can be reached at +1-415-482-9300 or found on the Web at
http://www.safevote.com



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2. January 19, 2000
World�s First Election Over the Internet to Use U.S. Company�s Technology
San Rafael, Calif. � Safevote, Inc. has signed a contract to provide the
technology which will allow voters to cast their ballots over the Internet
in Brazil�s public elections � possibly as early as this year � a first for
any national election in the world.

Safevote will initially provide technology to ensure that absentee ballots
cast over the Internet are anonymous, secure and authenticated. The entire
system will be provided by Modulo Security Solutions, of Rio de Janeiro.
Modulo�s systems also include components from Microsoft, Cisco, Entrust and
Compaq.

Modulo, the leading provider of Internet security in Latin America, began
conducting electronic elections in Brazil in 1990, when 61 million ballots
were cast via a closed computer network. An estimated 90 million voters will
vote without paper ballots in the November 2000 election.  Brazil
constitutes the second largest democratic voting population in the world,
with 110 million voters casting ballots. India is the largest, with 500
million voters, and the United States is third, with 100 million voters
casting ballots.

�Safevote technology will allow Modulo to go to the next level, to casting
votes over the Internet,� said Alvaro Lima, president of Safevote in San
Rafael, Calif. �The Internet is a �network of networks,� and the level of
security required is much higher than for those used in electronic
elections.�

Key to the system is Safevote�s leading edge multi-party technology, which
provides the tools and protocols needed to make a variety of secure,
anonymous collaborative decisions over the Internet � from polling to
private proxy voting and public elections.

�The most interesting point of Safevote�s technology is that it will allow
us to provide a unified Internet voting system without imposing changes to
the current user and management interfaces,� said Alberto Bastos, chief
operating officer of Modulo.

�Most systems used for providing security depends on a series of links in a
chain,� said Dr. Ed Gerck, vice president of technology of Safevote. �If you
cut a link, the system fails.

�We have developed a system that is based on the principle that every action
needs both a trusted introducer and a trusted witness, creating a manifold
of redundant paths. You have to cut a large number of links before the
system fails. And when you are talking about an election, fraud cannot be
handled in terms of statistical failure covered by insurance � we need a
much higher level of assurances and they need to be fail-safe.�

Safevote, Inc., located in San Rafael, Calif., provides systems for Internet
decision-making with applications for voting, polling, public elections,
bidding, consensus assessment and a variety of solutions. Safevote can be
reached at +1-415-482-9300 or found on the Web at http://www.safevote.com

To read a Microsoft case study of Modulo�s role in Brazil�s elections, see
http://www.microsoft.com/security/resources/bnecasestudy.asp



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1. Sept. 15, 1999
Safevote to Provide Internet Decision-Making Capabilities
San Rafael, Calif. � A newly formed company announced today that it will
provide encryption and certification technology that can enable users to
make anonymous and yet secure collaborative decisions over the Internet � an
application that can be used for many purposes, such as voting, polling,
bidding and other actions.

SafevoteSM Inc., of San Rafael, Calif., is developing technology that
enables a user to work within a multi-party system with a level of security
as tight as required.  In contrast, e-commerce transactions are based on
links within a two- or at most a two-and-a-half-party system, such as
between a consumer and an online store, or between a business and a consumer
by means of a certifying authority (CA), and security cannot be stronger
than the weakest link.

�If we can use the Internet for shopping, banking transfers, filing income
taxes, trading, and for proxy voting in shareholder meetings as approved by
the SEC, why can�t we have public elections using the Internet?� asked Dr.
Ed Gerck, vice president of technology for Safevote. �It is because voting
is not the same kind of transaction. You need anonymity with authentication
and verification � if you grab the voter you can�t see the vote, if you grab
the vote you can�t see the voter, and yet non-repudiation must exist for
both.�

�Besides, in e-commerce, credit card companies accept a certain amount of
fraud inherent in their business because, on average, the loss is covered by
insurance,� Dr. Gerck said. �But you cannot accept an average level of fraud
when you are conducting an election � or a one-shot business transaction.
Also, insurance is not an acceptable mechanism for dealing with fraud in
elections.�

In order to make transactions secure, anonymous and verifiable, Safevote has
developed a system that is based on the principle that every action needs
both a trusted introducer and a trusted witness, creating a manifold of
redundant links. �You have to cut a large number of links before the system
fails, and the probability of failure can be tuned by defining the number
and nature of the links according to a threat model adequate to each case at
hand,� Dr. Gerck said.

�We will provide three �less� -- less fraud, less cost and less time, when
compared with current systems,� declared Alvaro Lima, president of Safevote.
�Less is better,� added Lima.

Safevote, in San Rafael, California, can be reached at +1-415-482-9300 or
found on the Web at http://www.safevote.com





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