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4 March 2002

KPN appoints QED to license opto-electronic technologies

QED Intellectual Property Limited, the patent licensing arm of technology development and licensing company Scipher plc, has been appointed by Holland's largest telecommunications company, Royal KPN N.V. ("KPN"), to license part of their opto-electronic patent portfolio.

QED will seek licensees for around 60 opto-electronic technologies, including optical networks, integrated optics and optical switches, splitters and sources, under a revenue sharing agreement with KPN.

Dr. Koen Wuyts, the head of the Intellectual Property Group at KPN, stated: "After studying a number of alternatives we have chosen QED as a partner because of their outstanding track record in this field and of their professional and disciplined approach to licensing technology".

David Hulston, the Managing Director of QED, commented: "We are delighted to assist KPN execute their licensing strategy. We will be using our experience gained from the successful licensing of similar technologies to telecommunications companies around the world through our offices in Europe, Japan and the USA."

QED is now working with many leading telecommunications companies including British Telecommunications, Deutsche Telekom, Telstra and KPN to generate new revenue through licensing. Since March 2000, QED has been licensing BT's optical fibre amplifier technology to a number of the world's key optical fibre amplifier manufacturers that includes Furukawa, Moritex, Alcatel and Mitsubishi Cable, earning revenue for both Scipher and BT which is expected to continue over the remaining lifetime of the technology.


"KPN farms out patent portfolio" - FT, March 4th 2002

About KPN (KPN - Royal Dutch Telecommunications)

KPN is the largest Dutch telecommunications company offering a wide range of high quality and innovative telecommunications services for both the private and business market. Its core business activities are mobile communications, IP/Data services, Internet services and fixed network services. KPN focuses notably on the Benelux-countries and Germany, servicing over 25 million customers.

In developing sophisticated mobile communications services based on I-mode technology, KPN has a strategic partner in NTT DoCoMo. KPN Mobile (85% owned by KPN), together with E-Plus (its majority-owned joint venture), has over 12 million customers in the countries in which they operate. In 2000, revenues of EUR 13,511 million, earnings before depreciation and taxes (EBITDA) of EUR 5,756 million and a total balance sheet of EUR 53,465 million were achieved by KPN.

About Scipher

Scipher plc is the largest technology development and licensing company of its type in Europe. Scipher delivers value from intellectual property (IP) in two principal ways:

It commercialises patent-protected products developed by its own R&D resources, through licensing or sale to high-growth markets around the world.


Using its extensive expertise in IP management it creates value from clients' IP assets by providing a complete licence revenue generating service.
Scipher's impressive portfolio of advanced technology products and know-how covers the markets for 3D Sound, Displays, Communications, Sensors, Secure Identification and Broadcast Monitoring. Almost two-thirds of Scipher's revenues are earned outside the UK in 49 countries.

Scipher is backed by more than 70 years in advanced R&D including developments of such historic importance as stereo recording, television broadcasting and the medical CT scanner, which won a Nobel Prize for its inventor. Scipher's continuing tradition of technological achievement has been recognised most recently by winning the 2001 MacRobert Award, the highest UK accolade for innovation, awarded for Scipher's outstanding 3D Sound technology.

Scipher is listed on the London Stock Exchange (FTSE:SIP) and is a constituent of the techMark 100 index. For further information, visit the web-site: www.scipher.com

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