OTTAWA, August 4, 2005 -- Validian Corporation (OTC BB: VLDI)

Successful Beta Testing Leads to Full Release of Validian ASI™ Software Development Kit (SDK v1.0)

Developers can use Validian ASI™ SDK v1.0 to protect applications against unauthorized access, malicious code and other forms of attack

OTTAWA, August 4, 2005—Validian Corporation (OTC BB: VLDI), a leader in the development of innovative application-level security software, today announced that it has released version 1.0 of the Validian ASI™ software development kit (SDK). At the same time, Validian has released version 1.2 of its application security software, Validian ASI™, which includes enhancements that further improve ease of administration, and simplify configuration and management.

Validian ASI SDK v1.0, which was previously available in Beta version only, enables application developers to integrate a wide variety of applications with Validian ASI easily and quickly. Validian ASI SDK v1.0 is straightforward to learn and implement, and delivers the capability to:

• implement a secure data-transport and application-authentication framework that requires no knowledge of or expertise in security or IP networking,
• ASI-enable applications that are architected to be either client-server or fully distributed, and
• ASI-enable existing and new applications rapidly due to the very small set of programming classes.

Validian ASI protects applications against unauthorized access, malicious code and other forms of attack by creating a trusted domain that cannot be penetrated by any unauthenticated or unauthorized entities, including application components, services, processes and computers—or by cyber thieves, cyber terrorists and hackers. Validian ASI prevents application impersonation by authenticating all applications within an ASI domain, and ensures the security, privacy and authenticity of all communication among applications within the trusted environment. Enhancements delivered by Validian ASI V1.2 include:

• improved key management for ease of administration,
• straightforward troubleshooting for domain administrators, and
• support for multiple tokens for authentication.

"According to Gartner, 75 percent of attacks now target application vulnerabilities. However, 93 percent of organizations are protected from cyber theft, cyber terrorism and other hack attacks only by network security products such as firewalls, intrusion-detection and intrusion-prevention systems," said Bruce Benn, president and CEO of Validian Corporation. "Validian ASI eliminates the vulnerability between applications and network-layer security by delivering true end-to-end security between authenticated applications. Affordable and easier to deploy than other credentials-based systems, Validian ASI is largely self managed, and is cost effective for most organizations regardless of size and resources. Validian ASI SDK makes its easy for developers with little or no security or IP networking experience or expertise to ASI-enable new and legacy applications."

About Validian ASI
Validian ASI is a comprehensive software-only product that delivers a trusted environment through application authentication and authorization, encryption and decryption of data within applications, and a unique addressing scheme that delivers true IP-address independence. Validian ASI delivers inherent security for all communication among protected applications over any IP-based network. Symmetric encryption and decryption of data at the application layer prevents information from being tampered with during transmission. In this way, Validian ASI maintains confidentiality and ensures the integrity of all exchanged data, whether transfer takes place within a single corporate network, among applications that are distributed across various networks, or within an application whose services and components are distributed over several computers and networks.

About Validian
Validian Corporation provides software products that help public and private enterprises address the increasingly complex issues surrounding application security. Validian ASIT is an application-security software framework that protects the exchange of information among applications. Validian ASI operates at the application layer, where the majority of attacks now occur, and protects mission-critical applications against unauthorized access, malicious code and other forms of attack. Validian Flash Communicator uses the inherent security of Validian ASI to deliver secure, authenticated file- and message-exchange capabilities from virtually any Internet-connected computer in the world. Cost-effective, simple to deploy and easy to manage, Validian ASI and Validian Flash Communicator make secure data exchange among authenticated applications and people straightforward and affordable for any organization, regardless of size and resources. Validian products also facilitate security audit compliance and assurance, whether mandated by government, industry or internal policy, prevent application and end user impersonation, and deliver confidentiality through true end-to-end encryption of all exchanges, so that data never travels in the clear. A U.S. corporation, Validian has offices in the United States, Canada and Switzerland.

"Safe Harbor" Statements under the Private Securities Litigation Reform Act of 1995: Investors should carefully consider the preceding information as well as information contained in this news release before making an investment in the shares of the company. Information contained in this news release, which are not historical facts, including those that refer to Validian’s plans, beliefs and intentions, are "forward looking statements", which can be identified by the use of forward-looking terminology such as "believes," expects," "may," "should," or "anticipates" or negative thereof or given that the future results covered by such forward -looking statements will be achieved. The preceding matters constitute cautionary statements identifying important factors with respect to such forward-looking statements, including certain risks and uncertainties that could cause actual results to vary materially from the future statements as a result of certain factors set forth under Risk Factors and elsewhere in the Company’s Annual Report on Form 10-KSB with the Securities and Exchange Commission on April 14, 2005.