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Ceelox Announces First Patent Issued

Tuesday, October 19, 2010

Tampa, FL -- Ceelox, Inc., (OTCBB: CELO), (the "Company"), proudly announced today that it was issued its first patent from the U.S. Patent Office. The patent, U.S. Patent Number 7,818,395 entitled "Method and Apparatus for Interfacing with a Restricted Access Computer System," provides the ability for a data storage component, such as an external flash drive, to interface with a computer without loading additional software or requiring administrative rights on the computer.

The issued patent is utilized within the Ceelox Vault® product, which offers a File Manager-like interface with shortcut links to My Documents and Desktop and allows for the automated synchronization of files located on the portable device. Vaults can be created by multiple users who may share a device, each with unique biometric access to the stored data. Encryption of the data insures that even if the drive is removed from the laptop or desktop, the data cannot be accessed except by the owner of the vault. To encrypt or decrypt, either click on the file or folder or simply drag and drop from the Ceelox Vault® application. You will be asked to authenticate with a fingerprint scan to make sure that you are authorized to encrypt or decrypt your sensitive data.

"We are obviously pleased with the U.S. Patent Office's issuance of this patent, which we believe will strengthen our intellectual property protection. This is a significant milestone for our company, and we are very proud of our development team," said Gerry Euston, Ceelox CEO.

The Company also sells a desktop version of Ceelox Vault® offering the same strong biometric access control with drag and drop simplicity. Desktop file and folder encryption is necessary to protect sensitive data on the desktop or laptop when the computer is turned on or off. "Studies show that the majority of data breaches occur from internal sources. Full disc or so-called pre-boot encryption alone is not enough to protect a company's sensitive data, because it only protects data when the PC is off," said Euston. "Ours is also an ideal small to medium business solution, because it does not require centralized and complex administration, is simple and easy to use, and with our new patent, requires no admin rights for portable memory devices. With existing and emerging state encryption laws, simplicity is extremely important to businesses that cannot afford solutions involving centralized administration or substantial and costly user IT support."

About Ceelox, Inc.

Ceelox, Inc. is a developer of biometric security and encryption software solutions for financial institutions, healthcare companies, utilities, government agencies and other organizations for whom information access are key concerns. Its security and encryption tools are easy to deploy, simple to use, cost-effective and affordable for organizations of all sizes.

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factor disclosure outlined in our Form 8-K filed with the Securities and Exchange Commission on February 12, 2010 and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

For more information visit our website at

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