Rules for importing, exporting, re-exporting and use of Encryption Systems and Equipment Chapter One Definitions and General Provisions Article 1: Words and expressions set forth in this Resolution shall have the same meaning as in the Telecommunications Regulatory Act referred to, and the following words and expressions shall bear the meaning ascribed to them unless the context requires otherwise: Encryption: A process whereby a plain text, a textual document or an electronic message is transformed into unknown or scattered symbols that are impossible to read or identify without decrypting them back to their original form. Dealing in Encryption Systems or Equipment: Import, export, re-export, waiver, manufacturing, lease and trading in Encryption Systems or Equipment. Encryption Key: A sequence of characters and numbers used by an encryption algorithm to encrypt plain text into cipher text and vice versa. Encryption System: An organized assembly of tools, programs, processes, operations or equipment designed to perform encryption or decryption. PGP: Stands for Pretty Good Privacy. An encryption system that provides a high level of confidentiality. SSL: Stands for Secure Sockets Layer. A commonly- used protocol for managing the security of a message transmission over the Internet. Article 2: Personal usage of any cryptographic software (such as PGP) or hardware is not allowed. Usage of SSL is an exception. Article 3: Provisions stated in the attached Tables A, B & C shall be applicable in respect of fees and fines regarding dealing and usage of encryption systems or equipment. 2

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