For Immediate Release

Bluefire Security Technologies Gains Traction in the Government Sector

U.S. Census Bureau and U.S. Coast Guard select Bluefire to supply mobile security solution on handheld devices

Baltimore, MD December 8, 2004 — Bluefire Security Technologies, Inc. today announced its most recent “wins” in the government sector, the U.S. Census and the U.S. Coast Guard, which join existing government customers including the U.S. Navy, Los Angeles County Government and the U.K. Ministry of Defense. The U.S. Census Bureau and the U.S. Coast Guard have selected solutions from Bluefire to secure the integrity of their mobile data applications. Government agencies have an increasing need for wireless security solutions that protect handheld devices and the confidential data stored on those devices.

The U.S. Census Bureau, with twelve regional offices nationwide, serves as the leading source of data and statistics regarding the nation’s population. In preparation for the 2010 Census, the U.S. Census Bureau is conducting a Census Test in 2006. The U.S. Census will use Bluefire’s solutions to protect the handheld devices, which will be used to collect population and demographic information at the household level. Bluefire enables the secure collection of sensitive data by allowing for user authentication, data encryption, and effectively protecting data stored or “at rest” on the device. The U.S. Census project is believed to be one of the largest government “PocketPC” programs announced to date.

The U.S. Coast Guard, serving under the Department of Homeland Security, is dedicated to saving lives at sea and enforcing the nation’s maritime laws. Bluefire will be used to insure that handheld devices holding security-related information are protected from outside intrusion or interference. Bluefire has been embedded directly into the ROM of handheld devices procured exclusively for the Coast Guard. In the event that “hard reset” or loss of power to the device occurs, user authentication and data encryption will remain enforced even after power is restored. The first of the devices are now being deployed.

“Bluefire has seen significant growth this year – with new government customers such as the U.S. Census bureau and the Coast Guard, a strategic investment from Motorola, new personnel and an expansion of our corporate offices,” said Mark Komisky, CEO of Bluefire. “We are seeing a steady increase in market demand for wireless security solutions and continue to work with our customers and partners to provide flexible and secure solutions to meet their individual security requirements.”