June 5, 2003

News Release: Kasten Chase Announces Receipt of Significant Raytheon Order; RASP Data Security Purchase for U.S. Federal Government Programs

Kasten Chase (TSX:KCA), a leading provider of high-assurance data security solutions, announced today the receipt of a significant order for RASP Data Security(TM) products. The order was received through Raytheon Company (NYSE:RTN), a major security contractor, for use in programs requiring secure access to Classified information.

The order is expected to provide upgraded RASP connectivity for in excess of 2000 users and represents the major portion of revenues for the second quarter announced to date. The company expects to recognize the majority of the revenue associated with this purchase in this current quarter. 'As our government business evolves and progresses, we will continue to expand our channel initiatives and seek out additional opportunities to apply our expertise and full range of data security solutions to U.S. federal government programs'stated Paul Hyde, Chief Executive Officer of Kasten Chase.

'The experience gained through our relationships with prestigious partners such as Raytheon will be a significant point of differentiation for our company as we broaden and extend our Assurency(TM) portfolio of data security solutions for enterprises' added Mr. Hyde.

About Kasten Chase

Kasten Chase, a leader in high-assurance data security, builds trust and confidence in the connected world. Certified by the U.S. National Security Agency and pre-approved by the Canadian Communications Security Establishment, the company's RASP Data Security(TM) portfolio protects some of the most sensitive information in the world. Assurency(TM), Kasten Chase's portfolio of enterprise security solutions, protects data in transit and at rest, to enable business-critical applications, secure vital IT infrastructure and ensure the privacy of sensitive customer data. The company is a pioneer in the development of security solutions for networked data storage.

Kasten Chase achieved ISO-9001 certification in 1995. Risks and Uncertainties

This press release may include forward-looking statements with respect to business plans, activities, prospects, opportunities and events anticipated or being pursued by the Company and the Company's future results. Although the Company believes the assumptions underlying such statements to be reasonable, any of the assumptions may prove to be inaccurate and, as a result, the forward-looking information may prove to be incorrect. The anticipated results or events upon which current expectations are based may differ materially from actual results or events. Therefore, undue reliance should not be placed on such forward-looking information. Further, the realization of the outcomes referred to in such statements involves a number of risks and uncertainties, including but not limited to: decisions, or the timing of decisions, made by third parties over which the Company has little or no control or influence; the level of interest of customers, employees, suppliers and investors in the Company and its markets, products and prospects and the potential loss of existing customers or suppliers; the availability of funding for customer purchases and financing for the Company; dependence on proprietary technology; changes in economic and market conditions, industry standards, and government laws and regulations; as well as other risk factors detailed in the Annual Information Form and other securities filings of Kasten Chase Applied Research Limited (TSX: KCA) to which recipients or readers of this press release are referred for additional information concerning the Company, its prospects and the risks and uncertainties relating to the Company and its prospects.

The forward-looking information contained in this press release is current only as of the date of this press release. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.

SOURCE: Kasten Chase Applied Research Limited

Kasten Chase John Carlesso, 905/238-6900 x 3315 This email address is being protected from spambots. You need JavaScript enabled to view it.

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