Cylink Reduces Workforce as It Implements Cost Reduction Program

         SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 31, 2000--Cylink Corporation
(Nasdaq:CYLK  - news) today  announced  that it is  reducing  its  workforce  by
approximately 12% as part of its program to bring costs into line with near-term
revenue expectations.

         The personnel reduction together with reduced  infrastructure costs and
other  discretionary  operating  expenses is expected to reduce total  operating
expenses by approximately 17% in the first quarter of 2001.

         "These  changes will reduce our operating  expenses  below the level we
had at the beginning of the year," said William P. Crowell,  president and chief
executive officer. "As we discussed during our quarterly results conference call
on October 19th,  this reduction in operating  expenses is targeted to achieve a
self-sustaining  business  model  while we  continue  to focus our  energies  on
increasing our products' market penetration."

         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 www.cylink.com.

         This release includes the forward-looking  statement that Cylink's cost
reductions  are targeted at achieving a  self-sustaining  business  model.  This
forward-looking  statement involves risks and uncertainties,  and actual results
could be materially different. Factors that could cause actual results to differ
include unexpected delays in market acceptance of Cylink's  products,  inability
to achieve any of the anticipated cost reductions,  disruption in Cylink's sales
and  operations  caused by its  reduction  in work  force,  introduction  of new
technologies  and other risk factors  listed from time to time in the  company's
SEC reports,  including  but not limited to the report on Form 10-K for the year
ended  December  31,  1999,  and its  reports on Forms 8-K,  10-Q and the Annual
Report to Shareholders.