VeriTouch Spins Off cipherVOX®, World's First Anonymous Encrypted VOIP Solution

For Immediate Release

New York City - 27 January 2006

VeriTouch Ltd., a world leading innovator of biometric hardware devices, algorithms and encryption technologies, today announced the spin-off of cipherVOX, a flagship technology offering for a new secure communications company that will introduce the world's first encrypted, anonymous VOIP (Voice Over I.P.) solution for MS Windows™ and Linux PCs.

cipherVOX provides users with unparalleled security when placing or receiving free telephone calls from their PC to any other cipherVOX user throughout the world.

Unlike current services in the marketplace such as Skype, Net2Phone and Vonage, cipherVOX makes it virtually impossible to either detect a call has been placed or received by a user, or to "wiretap" and listen in on the users' private conversation. The unique technologies employed in the cipherVOX client software and utilized by a secure transport network assure that users' anonymity, confidentiality and privacy is assured at all times.

The revolutionary system requires no specialized equipment and is plug-and-play compatible with all Microsoft Windows PCs, with a Linux version to be released shortly.

"VeriTouch proudly introduces the first global telecommunications breakthrough product to protect the privacy and confidentiality of our customers with this release," stated Gary E. Brant, CEO of VeriTouch. "Clearly, individuals as well as corporations are becoming increasingly concerned that their civil liberties are being eroded in today's world. These issues pose a serious threat to individual freedoms in rapidly developing nations including China. cipherVOX will provide a secure channel for free internet-based telephony to our customers on a world-wide basis, in order to provide anonymity and privacy when placing free voice calls."

For further information, please kindly contact:

Gary E. Brant, CEO | VeriTouch Ltd. | gb@veritouch.com | Mobile: 917-378-2525