July 13, 2000

Arcot™ Licenses WebFort to Medicity,
Enabling Access to First Truly Mobile, Secure Communications
Network for Healthcare Professionals

Software-Only Acrot WebFort™ Provides Medicity With Ability to
Meet Proposed HIPAA Guidelines While Supporting Users' Needs for Wide Access
to Their Healthcare Community

Santa Clara, CA and Salt Lake City, Utah - Arcot Systems, Inc., provider of mobile, secure digital identity solutions, and Medicity, Inc., developer of the first secure communications work portal for linking healthcare communities, today announced the licensing of Arcot WebFort™ for all Medicity users. The integration of WebFort into Medicity's healthcare work portal proactively exceeds the pending HIPAA (Health Information Portability Accountability Act of 1996) guidelines, providing Medicity users with secure mobile access through any Internet connection anywhere at anytime.

"Medicity representatives regularly meet with users to better understand their particular needs. We know that physicians rarely work in one location throughout the day and that Medicity users need secure Internet technology for truly mobile access to their healthcare community," said David M. Coyle, Medicity's president and chief operating officer. "Our company provides the highest level of services, which allows us to maintain accountability of clinical data for thousands of users. For this reason, Medicity chose Arcot WebFort to augment our security model with a public key infrastructure, eliminating the need for smart cards, physical keys and biometric devices."

Under the terms of the agreement, Medicity will also receive professional services from Arcot to seamlessly integrate WebFort into the Medicity work portal. Implementation is expected to begin immediately and be completed during the next few weeks.

The deal allows for 50,000 or more ArcotID(tm) user licenses to be distributed to new and existing Medicity users. In addition to paying a fee for each user of the Arcot Secure Digital Identity solution, Medicity will actively promote Arcot as the preferred solution for secure and mobile sign-on. To capitalize on their rapid growth and natural synergies, both companies have agreed to future joint marketing and promotional activities.

"We are pleased to be working with forward-looking companies, such as Medicity that integrate security and privacy solutions that meet today and tomorrow's HIPAA guidelines when bringing compelling solutions and services to the Internet," said Chet Silvestri, President and CEO of Arcot Systems. "Enhanced user privacy and information security will help to speed the adoption of Internet-based workflow solutions in healthcare as well as other high-growth segments."

Medicity gives each user the power to prioritize the importance, relevance and urgency of the information they receive, facilitating timely and uniquely personalized information sharing. Medicity's web-based communications solution enables users to securely create and extend their healthcare communities, breaking the rigid boundaries of traditional healthcare enterprises. Through a single-user log-on and user-friendly interface, Medicity users can easily exchange information with all the members of their self-defined community who must work together daily in the delivery of healthcare.

Arcot technology will allow Medicity users to securely 'pick-up' their ArcotIDs, regardless of location, through any Internet-connected computer. The ArcotID can be securely stored on the user's primary computer for repeated use or can be automatically deleted at the end of a session. This eliminates the risky practice of storing unsecured usernames and passwords on machines accessible by many users, and supports Medicity users' need for access from a variety of locations. By ensuring the identity of the individual user, patient and user privacy is protected and the information and services to which they have access are secured as well.

User identities are protected by Arcot's breakthrough technology that hides the genuine credentials among millions of equally plausible ones. Hackers cannot discern the genuine credential from the spurious ones. Further safeguards limiting log-in attempts prevent unauthorized access by means of brute-force attacks.

About Medicity
Medicity is an eHealth infrastructure company that creates secure communication networks and aggregates connectivity solutions for healthcare communities. Medicity's patent-pending technology empowers physicians and healthcare professionals to create personalized virtual communication networks based on important workday relationships, as well as access their ASP, connectivity and other premium service offerings of choice, regardless of vendor, through a single logon and authentication process. Medicity addresses the healthcare industry's need to electronically link local healthcare participants and provide effective, efficient and private information sharing. The company is committed to building network infrastructure for healthcare communities by providing its members with unlimited access to personalized content and productivity solutions. Headquartered in Salt Lake City, Utah, Medicity, Inc. is a privately held company created by a team of healthcare experts. For more information about Medicity, contact us at 801.322.4444 or via email at publicrelations@medicity.com. Visit the Medicity website at www.medicity.com.

About Arcot Systems
Arcot Systems, Inc., located in Santa Clara, CA, provides secure digital identity solutions to ensure privacy and reduce fraud in enterprise and Internet transactions. Only Arcot can provide a software-based solution with any-device, anywhere, anytime capabilities for users that demand mobility, security and convenience. For more information, please see our web site www.arcot.com, contact us at 408.969.6100 or e-mail at info@arcot.com.

Leaders in financial services, healthcare and e-commerce are adopting Arcot to protect customer privacy, confidential information and secure transactions. Arcot also boasts a blue chip line-up of investment partners, including Accel Partners, Novell, Inc., Onset Ventures, Oracle Venture Fund and Raza Ventures.