Ottawa, Canada, August 2nd 2001 -- Validian Corporation, (OTC BB - "VLDI")

Validian announces its unique peer-to-peer communication technology

Validian announces the development of its original and exclusive peer-to-peer Application Security Infrastructure (ASI), which represents a significant advancement regarding security over the Internet for point-to-point and point-to-multipoint communications. The ASI environment is an inter-process communication system and processes may be running on a single or on multiple computers.

Any computer linked to the Internet can become a ASI Client by loading the ASI Core. A ASI client can become a ASI Server by loading a further three server files. A computer can be both a client and a server at the same time. The Core requires only 200K and the server files are on average 20K in size. Installation is straightforward and consists of copying the ASI environment and creating a registration folder.

ASI is platform and operating system independent and is currently implemented on Windows (9X, NT, 2000) and on Linux platforms. ASI can be ported easily to any other platform supporting a C++ compiler.

ASI can save customers significant amounts in development costs by reducing the requirements for training in multiple security features and approaches. For software engineers, using ASI dramatically reduces the time required to implement efficient and secure Internet applications. The learning curve is very short, as a total of only 10 function calls are used. Developers do not have to worry about low-level IP addresses or ports nor concern themselves with implementing complex security features, as ASI will handle the tasks automatically. This can shorten substantially the time-to-market and accelerate revenues from interactive, distributed applications.

ASI is simple to install and operate, provides full security and can be implemented anywhere. Furthermore, it is very powerful, highly reliable, fast and cost effective. It remains at all times under the control of the application administrator.

ASI can also be used for server-to-server communication.

The Company will introduce several additional new products, during the next few months, all based on Validian ASI Technology. These products solve difficulties currently experienced by many application developers and users, including those associated with security breaches and viruses.

The Company develops and markets software, which allows its customers to rapidly develop and deploy interactive, distributed applications using the Internet as a communication medium. The Company intends to become a privileged supplier to software development companies and to managers of interactive, distributed applications, for which the issues of security of communication and speed of development are paramount.

Validian supplies technology and tools to developers in order to fully secure the communication component of applications. These can lower training requirements for development personnel and reduce secure application development time as well as maintenance costs.

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.