Datakey appoints Chris Schwartzbauer Vice President of Sales and Business Development

MINNEAPOLIS, July 1, 2003 – Datakey Inc. (Nasdaq: DKEY), a leading developer of smart card technology for securing e-business, today announced that Chris Schwartzbauer has joined the company as Vice President of Sales and Business Development. Mr. Schwartzbauer is responsible for worldwide sales including the development of an indirect sales channel for the recently announced Datakey Axis product line. Prior to joining Datakey, Mr. Schwartzbauer was Vice President of Sales and Marketing for ObjectFX where he was responsible for a 50% year over year revenue increase. Previously, he was Vice President of Business Development for Secure Computing Corporation, a provider of network security products, where he dramatically increased revenue from indirect channels including alliance partners, reseller partners and OEM clients.

“We are excited to have Chris join the Datakey team,” said Tim Russell, President and CEO of Datakey, “he brings a demonstrated track record of rapid revenue growth and experience building indirect sales channels in the information security industry.”

About Datakey Inc.
Datakey Inc. focuses on delivering complete smart card-based solutions that simplify access and identity management throughout the enterprise. Datakey’s comprehensive solution set makes it easier to administer digital identities and to manage user access to a full range of corporate resources. Our solutions reduce administrative costs while at the same time providing stronger security. In turn, Datakey solutions make it much more convenient and secure for users to login to company resources by consolidating all digital credentials – including passwords, digital certificates, VPN/dial-up credentials and biometric data – onto one smart card and automating access through a single sign-on.