Press Release

Minneapolis, MN -- January 15, 2006

Boundary Waters Bank Selects Sig-Tec Corporation’s Biometric Solution for Secure Logical Access

Minneapolis, MN (January 15, 2006) Sig-Tec Corporation, a leading developer, provider and integrator of enterprise security software solutions announced the deployment of a biometric security software solution at Boundary Waters Bank, a 100+ million dollar financial institution with multiple branches in Minnesota. Boundary Waters Bank has selected Sig-Tec’s SPD PRO software, an enterprise security solution and audit software, combined with an APC biometric fingerprint reader to strengthen the security of its computer systems. By incorporating this leading technology into its security infrastructure, Boundary Waters Bank is demonstrating that it places high importance on the responsibility of information security.

"In the banking industry, security is clearly the first priority, and biometrics is a critical component of our network security plan," said Chief Information Officer David Pettit, “Sig-Tec’s enterprise solution provided us with security software that was easy to implement and simple to integrate across our existing, complex IT infrastructure. This solution will enable us to authenticate the identity of our employees at all our locations using fingerprint data, thereby improving the overall security of our network systems and eliminating the costly overhead of password management.”

“Our desire to be an innovator places us on the leading edge of community banks. By integrating our policies and procedures with the Sig-Tec’s security solution, Boundary Waters Bank has elevated our level of protection to fight information and identity theft as well as other forms of high tech crime;” said Mr. Dale Smith, Chief Executive Officer, Boundary Waters Banks.

"Security is undeniably the most serious challenge facing all financial institutions today. Financial institutions are not only confronted with the security concerns that all businesses face, but also the ongoing pressure to comply with the Gramm-Leach-Bliley Financial Modernization Act of 1999," said Thomas Hoghaug, Sig-Tec's Chief Executive Officer. “Sig-Tec's expertise and success implementing biometric security solutions are ideally suited to protect the sensitive data found in financial environments, which we believe is reflected by our continued success in the banking and financial services market."

Robert Hoghaug, VP and CTO, states that “Sig-Tec’s proprietary and full replacement GINA, versus the commonly implemented pass-through GINA, is the engine that provides our clients with a solution for strong authentication, true multifactor authentication or any combination of multifactor authentication for the user. In the banking industry, with its stringent regulations and security requirements, a full replacement GINA is the only choice to ensure that client information is secure!”

About Sig-Tec Corporation

Sig-Tec Corporation is an emerging leader of logical access, secure identity management software solutions. The company’s security software can either ENHANCE existing user id(s) and password(s) or completely ELIMINATE the need for the traditional barriers to user data access like, user id(s) and password(s) through the use of proximity, biometrics and/or token systems and devices. Sig-Tec is a respected developer of security software that features strong authentication including true multifactor authentication, auto-password generation and synchronization. Sig-Tec has designed its products to aid in compliance with regulatory security requirements such as HIPAA, Gramm-Leach-Bliley, U.S. PATRIOT Act, and Sarbanes-Oxley.

Sig-Tec is headquartered in Chanhassen, Minnesota. Sig-Tec products are distributed through a dedicated sales team as well as a network of value added resellers, system integrators, OEMs and valued partners. For further information visit:

www.Sig-Tec.com or call 952-294-3040.

About Boundary Waters Bank

Boundary Waters Bank commenced operations on April 1, 1999 in Ely Minnesota. The new Bank opened its doors with approximately $26 million in total assets and has since expanded to the Twin Cities with branch locations in Blaine and Woodbury, and more openings are planned. Quality customer service, delivered on a one-on-one basis to its customers has allowed the Bank to fulfill the banking needs of a growing number of small business owners as well as personal clients throughout the state.

Boundary Waters Bank has experienced significant growth, and the Bank had assets exceeding $100 million on December 31, 2005. Currently the Bank has approximately 90 shareholders including six commercial bank holding companies. Additionally, the Bank is projecting record growth and profitability in 2006. For more information, visit the Boundary Waters Bank web site at www.mybwbank.com.