U.K. Distributor Commits to $15 Million in Sales of V-ONE's SmartGate(TM)

              V-ONE Corporation and Internet Smartware, Ltd. Sign              Multi-Year Distribution Agreement for Western Europe 

GERMANTOWN, Md., Aug. 6 /PRNewswire/ -- V-ONE Corporation (Nasdaq: VONE), makers of the patented client-server security product SmartGate(TM) and Internet Smartware, Ltd., a leading European distributor and systems Integrator, today announced a multi-year distribution agreement giving Internet Smartware an exclusive in Western Europe for V-ONE products. The agreement, subject to certain conditions, commits Internet Smartware to a total of $15 million in sales of V-ONE's SmartGate and related products, consisting of $7 million in sales through 1998 and an additional $8 million in 1999.

Internet Smartware has been a V-ONE reseller since June of 1996 and has already sold in excess of $2 million in V-ONE products to European government agencies and corporations. The distributor is poised for further success with some of the Continent's largest banking, health care and financial services firms.

"When we first starting selling SmartGate, we were confident that it was far ahead of any competing technology," said Stuart Morrice, President of Internet Smartware. "Our subsequent success has proven this to be true. Especially now that SmartGate NT is being rolled out for Windows NT environments, we see the European market as being ripe for SmartGate."

Earlier this year, V-ONE and Internet Smartware announced that V-ONE's SmartGate was the security foundation of TORGET, the on-line commerce project of the Swedish post office. Since its inception in late 1996, over 100,000 people have signed up to use TORGET -- which is growing at well over 2,000 new customers each week -- making it arguably the largest functioning electronic commerce network in the world. SmartGate allows secure coordination of fund transfers between shoppers and TORGET, which offers the resources of more than 100 online content providers and receives an average of approximately 2.5 million "hits" per day.

"Sweden Post is one of the many successes V-ONE and Internet Smartware have achieved together," said James F. Chen, president and CEO of V-ONE Corporation. "We're looking forward to even more such successes in the future. Internet Smartware has proven their ability to penetrate and close one of the world's largest electronic commerce accounts."

SmartGate -- Strong Encryption Approved for Export by Commerce Department

An important competitive advantage for V-ONE, particularly in overseas markets, is its approval from the U.S. Department of Commerce to export SmartGate with V-ONE's "Trusted First Party" (TFP) Key Management Infrastructure (KMI) approach, enabling SmartGate to operate with strong encryption across national boundaries. Under TFP, the customer's security administrator, or Key Recovery Agent, can recreate selected session keys upon request by a duly constituted legal authority or for its own purposes. TFP does not require the storage of keys with third parties but merely the recreation of session keys when required. It is a simple and secure system which is easy to administer and allows corporations to control their own keys.

"V-ONE's encryption approval is welcome news to the numerous European companies looking to roll out secure Internet commerce services," says Stefan Jonsson, senior consultant to Sweden Post for TORGET. "We are committed to implementing the new KMI standard in our service and will be working closely with V-ONE and Internet Smartware in the future development of their technology."

About V-ONE Corporation

V-ONE Corporation makes and markets SmartGate, patented, award-winning client-server security technology that enables organizations to establish secure communications and transaction channels over public networks like the Internet. Major financial institutions, sensitive government agencies and large health care concerns use SmartGate for its integrated authentication, encryption and access control options. SmartGate tightly manages controlled users accessing sensitive data without changing an organization's existing firewalls, applications and network architecture and can be deployed in a matter of days. In May, SmartGate won the BEST OF SHOW award at Networld+Interop 97 for network server software. V-ONE is headquartered in Germantown, MD. Product and security information, white papers and the company's latest news releases may be accessed via V-ONE's World Wide Web site at http://www.v-one.com.

About Internet Solutions

Internet SmartWare is the United Kingdom's leading Internet and intranet security specialist. Employing some of Europe's foremost Internet security experts, the company supplies the most advanced security technologies available. Internet SmartWare is the exclusive European supplier of SmartGate encryption and authentication software, the enabling technology in Europe's largest electronic commerce service, TORGET. The company has offices in France, Germany, Belgium and Sweden.

This release, other than historical financial information, may consist of forward-looking statements that involve risks and uncertainties. These statements may differ in a material way from actual future events. For instance, factors which could cause results to differ from future events include rapid rates of technological change and intense competition, among others. Readers are also referred to the documents filed by V-ONE Corporation with the SEC, specifically the Company's registration statement as filed on Form S-1 and the last report on Form 10-K which identify important risk factors for the Company.

Microsoft is a registered trademark and Windows NT is a trademark of Microsoft Corporation.

SOURCE V-ONE Corporation

     -0-                             08/06/97 

/CONTACT: Jim Reed, Communications Manager of V-ONE, 301-515-5200, x5391/

(VONE)

CO: V-ONE Corporation; Internet Smartware, Ltd. ST: Maryland IN: CPR MLM SU: CON

MS -- DCW031 -- 3825 08/06/97 14:55 EDT http://www.prnewswire.com