Navy Selects Funge Systems' Smart Card Enabled Platform to Demonstrate Wireless Applications

Funge Systems and MAXIMUS, Inc. to Lead Development Effort

Funge Systems, Inc., a developer of smart card solutions for digital transactions on the Internet and mobile devices, announced today that the Department of the Navy Smart Card Office has selected Funge's Open Transaction Platform (OTP) to develop a prototype of a new smart card-enabled pocket computer and personal digital assistant (PDA) for wireless transactions.

Funge Systems, together with MAXIMUS, a leading smart card integrator, will demonstrate the ability to improve existing Navy applications through the use of a smart card-enabled, secure, portable wireless device.

MAXIMUS develops smart card solutions for government and industry and is responsible for some of the most complex and innovative smart card systems currently deployed within the Department of Defense.

The Open Transaction Platform allows end users to carry out secure transactions on any wired or wireless device, at any time and from anywhere. Transactions are initiated by a smart card that provides user identification, authentication, authorization, multiple payment functionality, and the secure transmission of information.

User authentication is accomplished using the Department of Defense Public Key Infrastructure (PKI).

The Department of Navy's Smart Card Office (DONSCO) initiated the program. Funge Systems' Open Transaction Platform is ideally suited to meet all requirements of DONSCO "Holy Grail of Interoperability" including a universal file structure accessed through an open platform, as well as a seamless migration to the wireless world.

The Funge patented intellectual property solution integrates a smart card into wireless devices including PDAs.

Funge Systems and MAXIMUS will confirm the open and interoperable nature of their business solutions. They will assist the Navy in demonstrating wireless transactions on two different models of PDAs and Pocket PC devices, using both the Palm and Microsoft Operating Systems.

These wireless devices will be equipped with the Funge patented integrated smart card reader and software, which is essentially a smart card slot in the back of the device. In addition, the prototype will demonstrate the ability to read smart cards with two different card operating systems, Microsoft Windows for Smart Cards and Java 2.1.

According to Navy requirements, the capacity will be demonstrated in the April to May 2001 timeframe, with the potential for additional deployments later in the year.

According to Keith Benson, CEO of Funge Systems, "The U.S. Government, with the Navy's leadership, is sure to drive the adoption of smart cards in the mobile space in the United States. In the past, this leadership has been exemplified by government-led electronic funds transfer, electronic benefits transfer and the development of the Internet.

"The ultimate benefit of The Open Transaction Platform to the Navy is that they will have a fully interoperable, open sourced platform that enables the cost-effective movement of value, monetary or otherwise, in a secure non-repudiated manner across the digital networks of today and the emerging technologies of tomorrow. Our patented intellectual property regarding the use of smart cards in mobile devices provides the Navy a clear migration to pocket PCs and PDAs accessed through wireless technology.

"Since the Funge OTP is designed to run on any equipment, Funge makes it easy for the Navy to choose the provider that gives them the best price for cards, software, hardware, and integration services."

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