Department of Justice                             
                                                                               
                   FOR IMMEDIATE RELEASE                 CIV                   
                   FRIDAY, MAY 7, 1999        (202) 514-2007                   
                   WWW.USDOJ.GOV          TDD (202) 514 1888                   
                                                                               
                        DEPARTMENT OF JUSTICE STATEMENT                        
         ON NINTH CIRCUIT COURT OF APPEALS DECISION IN ENCRYPTION CASE         
                                                                               
    On May 6, a three-judge panel of the United States Court of Appeals for the
Ninth Circuit in San Francisco issued a decision in a case involving government
controls on encryption exports. The Department of Commerce and the Department
of Justice are currently reviewing the Ninth Circuit's decision in Daniel
Bernstein v. United States Department of Justice and United States Department
of Commerce. We are considering possible avenues for further review, including
seeking a rehearing of the appeal en banc in the Ninth Circuit.

    The regulations controlling the export of encryption products currently
remain in full effect. The Ninth Circuie effect until the court issues its
mandate, which will not occur for at least 45 days. If the government asks the
Ninth Circuit to rehear the appeal during that time, the mandate will not issue
until after the Ninth Circuit has acted on the government's request.

    The district court injunction in this case relating to the encryption
export regulations has been stayed by orders isued earlier by the district
court and the Ninth Circuit, and the stays of the injunction remain in effect
until the mandate issues. Accordinaly, all persons who wish to engage in
encryption export activity, including the posting or other distribution of
encryption software on the Internet, must still comply with the export
licensing requirements of the Export Administration Regulations, administered
by the U.S. Department of Commerce's Bureau of Export Administration (BXA).

    Information about the regulations is available at the BXA website at 
www.bxa.doc.gov.