Press Release

ParetoLogic Unveils Anti-spyware for Smart Drives at CES

Las Vegas, Nevada  January 8, 2006 – ParetoLogic was pleased to offer a sneak peek of their anti-spyware technology for smart drives, XoftSpy Portable Edition, at this year's Consumer Electronics Show in Las Vegas. XoftSpy Portable Edition operates directly from new smart USB flash drives utilizing U3 technology. The CES preview version of XoftSpy Portable Edition was provided to the press on sample smart drives from Yahoo and U3 at the Digital Experience event.

XoftSpy Portable Edition provides protection for roaming users, ensuring that the computer they are about to use is free of spyware, keyloggers and other malware, without having to download and install scanning applications on the computer. This security application, carried on the very portable smart flash drives for use when needed, boasts a small footprint, fast operation and great accuracy, making it ideally suited for usage on the go. In addition to ensuring the security of the host computer, XoftSpy Portable Edition protects the smart drive itself securing its data and programs, even in cases where the host computer has lost Internet connectivity.

U3 technology creates a new world of opportunities for USB flash drives, turning simple storage appliances into smart devices capable of performing tasks normally associated with desktop computing. By utilizing the U3 platform, XoftSpy Portable Edition can run directly from the smart drive, without having to be installed on the host computer.

About U3

U3 LLC of Redwood City, Calif., has developed an innovative platform to make U3 smart drives that host a “personal workspace” - not only data and files, but U3 smart software programs, personal user preferences and the means for managing them. U3 smart drives transform a PC into a truly personalized computer, quickly, easily and securely, and exit transparently when done. U3, backed by USB flash drive market leaders M-Systems (NASDAQ: FLSH) and SanDisk Corp. (NASDAQ: SNDK), licenses its platform to USB drive manufacturers and provides its platform at no cost to software developers. For more information see www.U3.com.

About ParetoLogic

ParetoLogic is an international software development company headquartered in Victoria, British Columbia, Canada. A member of SIIA, we specialize in providing advanced security applications for enterprise, business and personal computer use as well as providing custom software solutions for business and government.

U3 is a trademark of U3 LLC. Yahoo! and the Yahoo! logo are trademarks and/or registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.

For more information please email us at biz@paretologic.com or visit us at www.ParetoLogic.com.