Entrust Closes on Asia Digital Media Joint Venture

Entrust Closes on Asia Digital Media Joint Venture

New Joint Venture Closes With Software Distribution and Media Subscription Agreement That Provide for a Minimum of $12 Million Over Three Years to Entrust

DALLAS, Dec. 21 /PRNewswire-FirstCall/ -- Entrust, Inc. (NASDAQ:ENTU), a world-leading provider of Identity and Access Management solutions, today announced that it closed its joint venture, Asia Digital Media, on Friday, December 17th. The Hong Kong based company will deliver secure technology solutions enabling digital TV satellite broadcasting, including HDTV, high- speed Internet and on-line transactions on a common network platform to the Chinese market. Entrust's Joint venture partners include China Aerospace New World Technology Limited, ADML Holdings, Ltd. and media investors.

Entrust and Asia Digital Media plan to help meet major programming, subscriber and technical goals that are part of the Chinese government's National Agenda project. "It is estimated that by the year 2008 more than 150 million households will subscribe to digital video services in China," said Anthony Hwang, Chairman and Chief Executive Officer of Asia Digital Media. "Asia Digital Media is uniquely positioned with the technological solutions and capabilities to help support China's plan for an all digital nation."

Asia Digital Media will be bringing together wireless infrastructure and cable subscriber management systems, along with security software, to deliver a next generation hybrid cable and satellite based network infrastructure. This network will enable digital and HDTV satellite broadcasting, high-speed Internet and on-line transaction services for the Chinese market. The media subscription agreement includes a minimum three-year term during which Entrust will receive $1 US per subscriber per year. Under this agreement, there are minimum commitments of 2 million subscribers in the second year and a total of 5 million subscribers within three years.

Asia Digital Media will also resell Entrust's products and services in China. Under the software distribution agreement, Entrust's complete suite of products and services will be marketed and sold to Chinese government entities and private enterprises under the "China Aerospace" brand. Beijing Aerosecure Technologies, a subsidiary of China Aerospace, will resell the company's products and services on behalf of Asia Digital Media under a minimum commitment level of $4.5 million over the next 3 years.

"Having worked very successfully with leading Chinese institutions such as the China Financial Certificate Authority, we look forward to extending our security expertise and market success throughout China as part of this agreement," said Bill Conner, Chairman, President and Chief Executive Officer of Entrust, Inc. "China represents an enormous potential arena for Entrust's future growth, and this initiative serves as a foundation for the company."

It is anticipated that Asia Digital Media will implement a demonstration system in early 2005. Commercial rollout to subscribers is currently scheduled for Q4 2005, which will coincide with China Aerospace's launch of Sinosat-2, a high capacity spot-beam KU band satellite for the digital broadcasting of television signals throughout China.

Asia Digital Media has an initial capitalization of approximately U.S. $20.0 million. Approximately 13 percent of the joint venture is owned by China Aerospace New World Technology Limited, 10 percent by a group of U.S. media investors, 60 percent by ADML Holdings, Ltd. and 17 percent by Entrust. Entrust is contributing $2 million in cash and has in total, direct and indirect holdings in Asia Digital Media of approximately 25 percent.

"Our talented partners at China Aerospace and the Chinese government are dedicated to the establishment of an all digital nation, and we look forward to helping them meet their objectives. Entrust is uniquely positioned with the technological solutions and capabilities to help facilitate this goal into reality," continued Conner.

About Entrust

Entrust, Inc. is a world-leading provider of Identity and Access Management solutions. Entrust software helps enable enterprises and governments to extend their business reach to customers, partners and employees. Entrust's solutions for secure identity management, secure messaging and secure data can help increase productivity and improve extended relationships by helping to transform the way transactions are done online. Over 1,400 organizations in more than 50 countries use Entrust's proven software and services to help turn business and security challenges into secure business opportunities. For more information, please visit: http://www.entrust.com/ .

This press release contains forward-looking statements relating to Entrust's projected future performance and the projected future performance of the Asia Digital Media joint venture. Such statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are unforeseen operating expenses, delays in implementing Asia Digital Media's demonstration system and its commercial rollout to subscribers and other factors detailed in Entrust's Securities and Exchange Commission filings. While Entrust may elect to update forward-looking statements in the future, Entrust specifically disclaims any obligation to do so, even if its estimates change.

Entrust is a registered trademark of Entrust, Inc. in the United States and certain other countries. In Canada, Entrust is a registered trademark of Entrust Limited. All Entrust product names are trademarks or registered trademarks of Entrust, Inc. or Entrust Limited. All other company and product names are trademarks or registered trademarks of their respective owners.


Source: Entrust, Inc.

CONTACT: David Rockvam of Entrust, Inc., +1-972-713-5824, or
david.rockvam@entrust.com ; or Doug McGinn of Dittus Communications,
+1-202-715-1558, or doug.mcginn@dittus.com , for Entrust, Inc.

Web site: http://www.entrust.com/


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