September 19, 2002

News Release: Kasten Chase Announces Multiple RASP Data Security(TM)Orders

Kasten Chase (TSX:KCA), a leading provider of high-assurance data security solutions, announced today that it has received multiple orders for its RASP Data Security(TM) solutions from five U.S. Government customers. The orders, representing both new deployments and system expansions of RASP Secure Access and Enterprise RASP, are substantial in aggregate and will positively impact the current quarter. "Orders from these important customers demonstrate again the growing interest we continue to experience from existing users and prospects alike. Our sales team continues to be extremely active assessing and responding to the needs of government and military departments during this critical period," stated Paul Hyde, Chief Executive Officer of Kasten Chase.

Mr. Hyde continued: "The strong position we hold within our market, as a result of the growing base of RASP customers, is presenting us with an increasing number of opportunities for our core business. Combined with other recent orders announced over the past weeks, these successes provide us with confidence in the long-term strategy we have chosen for our government business."

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 commercial market solutions mitigates risk in the sharing and storage of sensitive information and enables business-critical applications and IT infrastructure for enterprise customers in government, financial services and health care. 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.

Kasten Chase
John Carlesso
Investor Relations
(905) 238-6900 ext. 3315
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