Meganet Corporation is proud to present its “Ferrari 360 Challenge” [hereinafter “Challenge”].  The term of the Challenge shall be from 12:00 p.m. March 1, 2002 through 5:00 p.m. August 31, 2002 Pacific Standard Time [hereinafter “Term”].  During the Term of the Challenge challengers are provided with a VME encrypted file and are encouraged to attempt to decipher it.  Should a challenger be successful in deciphering the VME encrypted file, short of illegally acquiring the password, and should that challenger be the first to submit proof of deciphering the VME encrypted file, that challenger [hereinafter “Winner”] will be awarded a prize of a brand new Ferrari 360 Challenge, subject to the following conditions:

                1.                 The Ferrari 360 Challenge prize will be awarded only once and only to the Winner, i.e. the first challenger to submit, via the mechanism provided for in the Challenge, proof of deciphering the VME encrypted file.  No prize will be awarded to any challengers other than the first to submit, pursuant to the terms of this Challenge, proof of deciphering the VME encrypted file.

                2.                 Winner must explain and demonstrate to Meganet Corporation, and to the satisfaction of Meganet Corporation, at Meganet Corporation’s offices the process, tools, technology and any other means Winner used to decipher the VME encrypted file.  Meganet Corporation reserves the right to refuse Winner the prize should Winner’s demonstration and explanation as to how Winner deciphered the VME encrypted file is not legitimate.

Meganet Corporation will administer and oversee this Challenge.  Once the Term of Challenge expires, or a challenger is confirmed as Winner, the password together with the VME encrypted and decrypted file shall be posted on Meganet Corporation’s website.

Should a challenger be confirmed as Winner and satisfy the terms of this Challenge [subject to Meganet Corporation’s confirmation of same], Meganet Corporation will release the Ferrari 360 Challenge prize to Winner.

All submissions of a candidate decryption key must be submitted by e-mail to challenges@meganet.com

An application to assist in decrypting the VME encrypted file [hereinafter “Application”] may be downloaded from Meganet Corporation’s website at www.meganet.com.  This download is not a requirement, but is provided only as assistance.  No challenger is going to be given any preference whether or not they use the subject application.

Any and all downloads from Meganet Corporation’s website are subject to the following:

             If you, the challenger, are downloading the VME encrypted file or Application or both you are certifying and declaring under penalty of perjury under the laws of the State of California, United States of America that by downloading said files you are not violating and you are not causing Meganet Corporation to violate any applicable export laws, restrictions, and regulations of the U.S. Department of Commerce, the U.S. Department of Treasury and any other U.S. or foreign agency or authority in general and as they specifically pertain to export or re-export of encryption products and Meganet Corporation’s products and Meganet Corporation’s downloaded files specifically, including, without limitation, export or re-export to Cuba, Iran, Iraq, Libya, North Korea, Sudan, Syria or any other country subject to U.S. trade embargoes, or to any party on the U.S. Bureau of Export Administration Table of Denial Orders or the U.S. Department of Treasury List of Specially Designated Nationals, or to any prohibited destination specified in the then current Supplement No. 1 to Part 738 of the U.S. Bureau of Export Administration Regulations, or any successor supplements or regulations.

You further declare under penalty of perjury under the laws of the State of California, United States of America that you are not on the U.S. Bureau of Export Administration Table of Denial Orders or the U.S. Department of Treasury List of Specially Designated Nationals, that you are not located in Cuba, Iran, Iraq, Libya, North Korea, Sudan, Syria or any other country subject to U.S. trade embargoes, or in any prohibited destination specified in the then current Supplement No. 1 to Part 738 of the U.S. Bureau of Export Administration Regulations, or any successor supplements or regulations.

You further declare under the penalty of perjury under the laws of the State of California, United States of America that you will not forward, transport, mail, e-mail, or disseminate any files downloaded from Meganet Corporation’s website to Cuba, Iran, Iraq, Libya, North Korea, Sudan, Syria or any other country subject to U.S. trade embargoes, or to any party on the U.S. Bureau of Export Administration Table of Denial Orders or the U.S. Department of Treasury List of Specially Designated Nationals, or to any prohibited destination specified in the then current Supplement No. 1 to Part 738 of the U.S. Bureau of Export Administration Regulations, or any successor supplements or regulations.