Ottawa, Canada, Nov 20, 2001 -- Validian Corporation, (OTC BB - "VLDI")

Validian reduces debt, improves balance sheet

Validian announces that it has consolidated its operations resulting in a positive impact on its income statement and balance sheet. The Company closed down its Swiss subsidiaries during the three months ending September 30, 2001 and from which the Company realized an extraordinary gain of $758,944 and a loss on disposal of assets of $81,932.

Research and development activities are now undertaken directly by Validian. Furthermore, the Company completed the conversion of $2,251,704 of loans and payables into 2,814,631 common shares, at $0.80 per share. The combined effect is to reduce the Company's total liabilities from approximately $3.15 million to a more manageable level of under $150,000.

This improved balance sheet positions the Company to pursue a focused expansion, which may include the acquisition of compatible technologies or corporations in order to speed up market penetration.

Validian develops and markets technology and tools, which allow its customers to rapidly develop and deploy secure, interactive, distributed applications using the Internet as a communication medium. The Company offers unique products to secure the links between all participants in distributed applications and to provide a unique 2-factor authentication of users. Validian products can be implemented easily into existing applications or integrated into software development environments.

The Company sells to software developers and companies using interactive, distributed applications and for whom the issues of security of communication, non-repudiation and speed of development are paramount.

Validian operates in North America and Europe.

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 contains "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. Other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements.

Contact:
André Maisonneuve
Validian Corporation
Telephone: 613-230-7211
Fax: 613-230-6055
e-mail: andre.maisonneuve@validian.com

"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.