Diaphonics, a provider of IT security solutions based on biometric voice verification, today announced that Banco Santander International has selected Diaphonics’ Spike Server platform for voice-driven password resets and call recording. Spike Server is a complete hardware and software solution that features biometric voice verification, call recording, audit trail and management utilities.

Banco Santander International will deploy Diaphonics’ Password Agent application, delivered on the Spike Server platform. With Password Agent, customers and employees are able to conveniently and securely reset passwords over any telephone. Password Agent leverages Spike Server’s voice verification technology, which works by matching a caller’s voice against a previously created voice model, or “voiceprint”, to confirm identity. Spike Server will also provide call recording for the bank’s enterprise Voice over IP (VoIP) telephone system.

According to Agustin Abalo, senior vice-president and chief information officer at Banco Santander International, Spike Server’s flexibility made it the best choice.

“We needed a solution for recording calls on our VOIP network and we also wanted a better way for our employees to reset passwords. Spike Server was clearly the best option to meet both of these needs. Furthermore, the Diaphonics team has the security expertise, as well as experience with VoIP systems, to deliver on our requirements. We are eager to explore utilizing Diaphonics’ voice verification for follow-on applications, such as wire transfer for Private Banking,” said Abalo.

“Banco Santander International is leading the way in providing innovative solutions to meet today’s security and customer service challenges,” said Andy Osburn, Diaphonics’ president and CEO. “With Spike Server, we are able to deliver applications like self-service password resets and call recording, all on a single platform. The product is not only flexible in terms of features and applications, but also in terms of deployment options. Spike Server is designed to operate in both traditional and VoIP telephony environments, and connects to many password management systems.”

About Grupo Santander
At the end of 2004, Grupo Santander was the ninth largest bank in the world, the fourth in Europe and the first in the Euro zone by market capitalization, which stood at of EUR 57,102 million. Santander operates in two continents - Europe and America - which provide it with geographic, currency (euro, dollar and sterling) and risk diversification, the result of a well-balanced presence in developed and emerging countries. Santander has more than 126,000 employees, 63 million customers, 10,000 branches and 2.6 million shareholders.

About Diaphonics (WWW.DIAPHONICS.COM)
Diaphonics is a provider of IT security solutions based on biometric voice verification. Diaphonics’ Spike Server is the industry’s most complete hardware and software platform for voice security. Today, financial services companies and government agencies rely on Spike Server to verify the identity of callers with voice verification, record conversations and create a searchable audit trail. Diaphonics is based in Halifax, Canada, with US sales headquarters in Boston, MA.

For more information, please contact:
Diaphonics Inc.
T: 1.902.446.4959

Halifax, Nova Scotia, January 20, 2006