Trois-Rivières, November 4, 2002 – As part of a current round of financing of $4 million, Cilys announces that venture capital firm Innovatech Québec will continue to demonstrate its confidence in the Trois-Rivières company, with its third investment, this one in the amount of $750,000. This amount brings Innovatech’s total investment in Cilys to $2,750,000 since the company was founded in July 2000. The new placement is part of a financing round totaling $4 million, for which Cilys is currently in discussion with potential primary investors. The funds obtained from this round of financing will allow the company to begin the international marketing of its based optimization platform for wireless data networks, allgo*mobile™, based on patented allgo™ technology. The announcement was made on the occasion of the I.T. Contact Québec 2002 symposium.

“The marketing phase that we are about to enter coincides with the urgent need for wireless operators to optimize their network infrastructure. The current financing round of $4 million will allow Cilys to seize this incredible opportunity,” says Audry Larocque, President and founding partner of Cilys. ”Recent partnerships concluded with key players in the industry, such as Ericsson, Texas Instruments and Symbian, position Cilys in a global wireless telecom market in need of a new generation of higher performance and better adapted wireless equipment and devices.”

In July 2002, following more than two years of research and development, Cilys launched allgo*mobile, its breakthrough standards-independent wireless data optimization solution for today’s and tomorrow’s packet-switched wireless networks. Designed to accelerate data transmission, allgo*mobile acts at the core of the new digital cellular infrastructures by adding its own real-time digital compression and innovative optimization schemes.

Cilys’ technology has been evaluated at Ericsson’s testing laboratories in Montreal, one of the world’s most advanced centers for simulating cellular networks, formally confirming the technology’s advantages and performance. Cilys’ technology allows wireless operators (GPRS and 1xRTT) to offer their subscribers wireless data access services that are tremendously faster, delivering a better wireless Internet experience, while lowering their network operating costs.

According to Jason Chapman, senior analyst at the Gartner Group, and Mark Blowers of the Butler Group, wireless carriers must look at alternative ways of implementing data services, such as flexible optimization solutions to deliver a faster and more reliable data offering, that will allow them to attract and retain new subscribers while awaiting their 3G networks.

New Enterprise of The Year Award

Recognized regionally for its excellence, vitality and potential for growth, Cilys has received the New Enterprise of the Year award from the Centre local de développement (CLD) de Francheville and the regional chambers of commerce at the Gala des RADISSONS on October 25th in Trois-Rivières.

About Innovatech Québec

Innovatech Québec is a Quebec Government venture capital corporation specializing in pre-start up and start up financial assistance to technology companies. With a $150 millions fund, Innovatech’s investment portfolio includes over 100 companies and projects in the following fields: information technology and telecommunications, optics and photonics, biotechnology and industrial technology. For more information visit the Web site at: www.innovatechquebec.com

About Cilys

Cilys is a privately-held Canadian company that develops and markets the allgo*mobile™ Thin Client/Smart Server, its innovative wireless optimization solution for today’s and tomorrow’s packet-switched wireless networks. Based on Cilys’ core technology, allgo™, which is designed to accelerate data transmission speed, allgo*mobile acts at the core of packet-switched wireless infrastructures by adding real-time digital compression and avant-garde optimization schemes.

Combining remarkable simplicity of use with an outstanding increase in performance on wireless user devices, allgo*mobile allows mobile operators to offer their subscribers wireless data access services that are twice as fast and that provide a better wireless Internet experience.

Cilys is headquartered in Trois-Rivières, Canada, and has offices in Montreal. For more information visit the Web site at www.cilys.com.

About I.T. Contact Québec

I.T. Contact Québec 2002 is an international symposium focused on partnerships in the information and communications technology sectors. It encourages the development of links and business networks leading among technology, industrial, financial and institutional partners. For more information, please visit the Web site at www.ticontact.com.

For information:

Louis-Philippe Benoit
Vice-president finance
Cilys Inc.
Phone : (819) 373-7163
Fax : (819) 373-7320
lp.benoit@cilys.com

or

Marie Cloutier
Marketing Director
Cilys Inc.
Phone : (514) 849-3883
Fax : (514) 849-7748
marie.cloutier@cilys.com