Thursday August 31, 2000

Press Release

CYLINK CORPORATION COMPLETES ACQUISITION OF CELOTEK CORPORATION

Purchase to Expand Cylink's ATM Security Product Engineering, Manufacturing, and
Marketing Capabilities

         SANTA  CLARA,  Calif.,  August 31, 2000 - Cylink  Corporation  (NASDAQ:
CYLK) has completed its previously announced acquisition of Celotek Corporation,
a privately held developer of high-performance  Asynchronous Transfer Mode (ATM)
network security  appliances used to secure voice,  video and data transmissions
over high-speed public and private wide area networks.  Celotek has supplied the
ATM encryption appliances that Cylink, under private label, sells to Fortune 500
companies,  government  agencies,  and major financial  organizations around the
world.

         According  to a formula  set at the time of the  definitive  agreement,
Cylink issued 1,610,545  shares of its common stock,  representing a transaction
value of $21.5 million,  less certain  expenses,  for all privately held Celotek
shares. The transaction, being treated as a purchase for accounting purposes, is
expected to be dilutive to third quarter,  2000 results but is expected to begin
positive contributions to operating results in the fourth quarter of 2000.

         The former Celotek Corporation,  headquartered in the Research Triangle
Park area of North  Carolina,  now  becomes  the Cylink ATM  Technology  Center,
dedicated  to  continuing   Cylink's   leadership  in  developing  ATM  security
applications  and products.  With this important  capability,  Cylink expects to
continue  current  and  future  OEM and  strategic  partnerships  involving  ATM
security.  Mel Snyder,  former Vice President  Operations for Celotek, was named
General Manager of the new ATM Technology Center.

         "Acquiring  Celotek,  its people,  technology  and channels is of great
strategic  importance to Cylink's customers and  shareholders,"  said William P.
Crowell, Cylink's president and chief executive officer.

         "As the primary means for mission critical backbone communications, ATM
continues to grow rapidly among our customers,  which include  banks,  financial
institutions, service providers, and other large enterprises.

         "Cylink  is now in an even  better  position  to  provide a variety  of
security  solutions to protect  information  transmitted  over ATM backbones and
significantly  reduce the risk to this crucial  business  information,"  Crowell
said.

About Cylink Corporation

         Cylink  Corporation  develops,  markets  and  supports a  comprehensive
family of secure  e-business  solutions.  Founded in 1983,  the  Company was the
first created to market  security  solutions  that protect  communications  with
public key cryptography.  Cylink and its wholly owned subsidiaries






serve  Fortune  500  companies,   multinational  financial   institutions,   and
government  agencies  worldwide.  For more information,  visit the Company's web
site at http://www.cylink.com.

         Some of the  matters  discussed  in this  release  are  forward-looking
statements  that involve risks and  uncertainties,  and actual  results could be
materially  different.  Forward-looking  statements include the expectation that
the acquisition will result in positive  contributions  to operating  results in
the future,  that Cylink will continue the leadership of developing ATM security
applications  and products,  that Cylink will continue to be involved in OEM and
strategic partnerships involving ATM security, that the popularity or importance
of the ATM technology  will continue to grow, and that Cylink's  position in the
ATM business will be improved. Factors that could cause actual results to differ
include but are not limited to market factors,  such as unforeseen variations in
the market for ATM technology, pricing pressures, costs of production, or market
acceptance;  technical factors, such as success in future product development or
the  emergence  of  alternative   technologies;   risks   associated   with  the
acquisition,  such as  Cylink's  ability to retain  and  integrate  the  Celotek
engineering  team,  Cylink's  ability  to manage  the costs of  integrating  the
acquired  company  and  potential  unforeseen  liabilities  associated  with the
acquisition; competitive factors, including the entry of large, well-capitalized
companies.  This list is not intended to be exhaustive;  other risks  associated
with  Cylink's  are  listed  from  time to time in the  company's  SEC  reports,
including  but not  limited to the report on Form 10-K and the Annual  Report to
shareholders for the year ended December 31, 1999 and its reports on Forms 10-Q.

                                      -2-