FOR IMMEDIATE RELEASE                                         CIV
TUESDAY, AUGUST 26, 1997                           (202) 616-2777
                                               TDD (202) 514-1888

  JUSTICE DEPARTMENT STILL REVIEWING DISTRICT COURT DECISION ON
              EXPORT CONTROLS ON ENCRYPTION SOFTWARE

     WASHINGTON, D.C. -- The Justice Department said today it is
considering what further legal measures it will take following
yesterday's ruling by the U.S. District Court in San Francisco
that certain aspects of the government's regulations on the
export of encryption software are unconstitutional. Another
federal court previously upheld the export controls on encryption
software.

     The Administration is committed to promoting the legitimate
use of encryption. Through encryption--or the coding of messages-
-businesses can protect trade secrets, hospitals can safeguard
medical records, and individuals can be assured that personal
messages on the information superhighway remain private. 
     
     But, as President Clinton stated upon issuing an Executive
Order on this subject on November 15, 1996, the use of encryption
products by unfriendly parties outside the United States can
jeopardize the foreign policy and national security interests of
the United States, and the public safety of U.S. citizens. 

     Judicial proceedings in Bernstein v. Department of State are
not yet concluded, and the decision governs only that case.  In
March 1996, in another pending case in Washington, D.C., Karn v.
Department of State, the District Court ruled that export
controls on encryption software are constitutional under the
First Amendment and serve important interests of the United
States.  That case is still pending to consider export controls
on encryption now administered by the Commerce Department. 

     Until this issue is resolved, export controls on encryption
software remain in place.  Individuals or companies wishing to
export encryption software by any means must continue to adhere
to applicable export licensing controls on such software before
exporting it abroad.   
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