BioPassword Inc., the leader in software-only strong authentication, today announced a strategic partnership with Diaphonics Inc., a leading provider of IT security solutions based on biometric voice verification. The combined offering will provide organizations with multi-factor authentication that is easily deployable, cost effective and unobtrusive to end users. It will further help organizations comply with increased government regulations for stronger authentication.

With the alarming rise in identity theft, the government is mandating organizations take additional steps to protecting sensitive data. The Federal Financial Institutions Examination Council (FFIEC) recently set new guidelines for financial institutions to implement multi-factor authentication for all electronic transactions, including online banking. And now, the FFIEC is mandating those same regulations be applied to telephone banking. With this partnership, BioPassword and Diaphonics are providing an ideal solution to help financial institutions, among others, easily meet compliance without burdening end users and customers.

“Diaphonics and BioPassword are both committed to providing the easiest-to-deploy authentication solution that is simple for organizations and their customers to use,” said Jeremy Bernard, vice president of marketing and business development at Diaphonics. “We are excited to partner with an innovator like BioPassword, as we are able to deliver a more comprehensive authentication offering to our customers and the market.”

Diaphonics uses biometric voice verification for the utmost in caller authentication. With voice verification, a caller’s identity is confirmed by a vocal password that is matched to a pre-recorded vocal template. The company’s products also record conversations and create an audit trail of all interactions for further security measures. Diaphonics’ delivery platforms, Spike Server and SpikeCore, are designed to integrate easily with automated speech and touch-tone Interactive Voice Response systems. Diaphonics currently works with Banco Santander, the International Bank of Miami and the Maine Department of Corrections, among others.

“This partnership is the result of growing market demand for alternatives to cumbersome authentication solutions,” said John Przelenski, vice president of business development at BioPassword. “Diaphonics’ solutions are complementary to BioPassword’s software-only offerings. We will continue to pursue partnerships with market leaders to enhance BioPassword’s ability to deliver a more secure and complete offering for our customers and the market.”

BioPassword’s software-only solutions authenticate users without the need for specialized hardware by analyzing a combination of standard login credentials (userID and password), keystroke biometrics (unique typing rhythm) and knowledge-based authentication (user selected questions and answers). BioPassword’s solutions include BioPassword Internet Edition for strong authentication in web-based environments and BioPassword Enterprise Edition for strong authentication in Windows Active Directory and Citrix Presentation Server environments.

About Diaphonics (WWW.DIAPHONICS.COM)
Diaphonics helps organizations fight ID fraud, save costs and enhance compliance procedures with security solutions based on voice biometrics. Diaphonics’ Spike Server is a complete hardware and software platform that confirms the identity of callers with biometric voice verification and creates an audit trail of all interactions. Today, companies rely on Spike Server for two-factor authentication, secure wire transfers, PIN/password resets and other important transactions.

BioPassword Inc. located in Issaquah, Washington, leads the market in delivering enterprise security solutions for software-only strong authentication. BioPassword protects company and individual assets with a simple, yet powerful combination of the user’s standard login credentials (userID and password), keystroke biometrics (their unique typing rhythm), and knowledge-based authentication (user selected questions and answers). BioPassword's strong authentication software is fast, accurate, transparent, scalable to millions of users and immediately deployable across the organization and the Internet without the need for expensive tokens, cards or other specialized hardware. For a live demonstration of BioPassword’s keystroke biometrics, log onto WWW.BIOPASSWORD.COM/DEMO1.




For more information, please contact:

Diaphonics Inc.

Halifax, Nova Scotia, June 14, 2007