Kroll-O'Gara Enters Internet Security Arena With Acquisition

The Kroll-O'Gara has bought Securify Inc. for approximately 1.4 million shares of Kroll-O'Gara common stock. Securify, founded in early 1998 by Taher Elgamal and Dan Kolkowitz, provides security service in the areas of e-commerce and business and government applications. These include network and system security review and repair, product evaluation, development and implementation of security policies, system architecture and information security training.

Commenting on the acquisition, Jules Kroll, chief executive officer of The Kroll-O'Gara Co., said, "In the 21st Century, e-commerce and the Internet represent explosive commercial growth opportunities when coupled with and enabled by information security. The Securify team is internationally recognized in the information security industry. Strategically, The Kroll-O'Gara Co. is now positioned to be a leading player in this emerging market."

Tom O'Gara, vice-chairman of The Kroll-O'Gara Co., said, "I believe the acquisition of Securify will prove to be as important, from a strategic viewpoint, as was the merger between The O'Gara Co. and Kroll Assoc. We believe that we have secured the "who's who" of information and computer security."

Bill O'Gara, president and COO of The Kroll-O'Gara Co., stated, "We look forward to building a major business entity within The Kroll-O'Gara Co. as a result of this important acquisition. Given the early stage of Securify and the need to build their business, including hiring an experienced chief operating officer and filling out the senior management team, we expect the acquisition to be dilutive to Kroll-O'Gara's earnings by between $0.07 and $0.10 per share for 1999 and, barring unforeseen developments, accretive in year 2000 by between $0.05 and $0.10 per share."