ACADEMIA

SAN ANTONIO, TX -- The amount of classified information being transmitted via networks is rapidly increasing. However, as e-terrorists attempt corporate espionage and hacker attacks, military and government agencies, along with contractors, are propelling sales as they invest in data and network encryption devices that assure necessary privacy. New analysis by Frost & Sullivan (www.defense.frost.com), "World Military and Government High Assurance Network and Data Encryption Market," reveals that this industry generated revenues of $176 million in 2000 and is projected to increase steadily to $457.6 million by 2007. "Hackers are no longer solely focused on disrupting service and implanting viruses," says Frost & Sullivan Senior Analyst Brooks Lieske. "They are also doing less noticeable, but potentially more damaging activities such as reading e-mail and gathering restricted information from Internet sites and computers." International agencies ranging from the National Security Agency (NSA) to the NATO are increasing network defense spending and modernizing equipment to ensure the privacy of transmitted information. Because of the multiple security risks associated with networks, end users are trending towards multi-layered security, with the military showing growing interest in wireless encryptors. "Manufacturers must also cater to defense contractors who use similar high-speed encryptors to comply with government security regulations," says Lieske. "Not only must contractors protect sensitive information from global espionage, but corporate espionage has also become a concern." "Corporate espionage is an ever-present threat, and defense contractors require quality encryption for sensitive information. The `better safe than sorry' perspective will have a very positive influence on demand." For more information visit http://www2.frost.com/prod/portal.nsf/frmServicesPage?ReadForm