Diversinet Applauds New U.S. Federal Security Standards Recommendation for Online Banking

Company Publishes Matrix of Mass-Market Two-factor Authentication Token Options Commercially Available for Financial Service Providers

TORONTO, ON, October 24 2005 - Diversinet Corp. (OTCBB: DVNTF), a leading provider of mobile-enabled personal authentication and security solutions, today applauded the new federal security standards for online banking established in a report published last week by the Federal Financial Institutions Examination Council (FFIEC). The report recommends that all banks adopt some form of two-factor authentication by the end of 2006 in an effort to reduce account fraud and identity theft. In support of the FFIEC’s directives, Diversinet also has published a matrix of current two-factor authentication token form factors - including mobile tokens, PC-based tokens, hard tokens, USB tokens and others - highlighting the features of each type, and is making the two-page report available for free download on its web site.

According to the FFIEC report “Authentication in an Internet Banking Environment,” single-factor authentication, as the only control mechanism, is inadequate for high-risk transactions involving access to customer information or the movement of funds to other parties, and recommends the use of multifactor authentication, layered security or other controls reasonably calculated to mitigate those risks. As a result, banks and other financial institutions offering consumers the ability to conduct transactions over the Internet are expected to deploy some form of two-factor authentication to meet these new federal security requirements.

“The rapid rise of online banking has created a tempting target for fraud and identity theft, and we are in complete agreement with the FFIEC on the need for stronger authentication, we also believe that financial institutions deploying the right consumer security solutions will gain an important competitive advantage,” said Stu Vaeth, chief security officer at Diversinet. “Banks and other financial services companies offering online transactions need a two-factor authentication system that is cost-effective, easy to provision and manage, and supports the greatest number of access devices while making it as easy as possible for its customers to use. We think software tokens on second factor portable devices are the optimal solution that offers all these advantages.”

According to Vaeth, one-time password (OTP) tokens are a straightforward extension to existing static password-based systems, making them fairly simple to deploy. The technology is proven and reliable, and today is a more cost-effective method for authenticating online transactions than biometric-based systems. Soft tokens running on a second factor device such as mobile phones and other wireless platforms provide greater flexibility and mobility, and are inexpensive and convenient for consumers who already carry such devices.

Diversinet’s Two-Factor Authentication Token Matrix provides an overview of the various strong authentication tokens available from across the industry to banks and financial institutions seeking to provide two-factor authentication. The matrix summarizes the features and service capabilities of each type as well as identifies unit cost considerations for consumer deployments. The matrix is available for download now from the Diversinet web site at www.diversinet.com.

As a leading mobile-based personal authentication and security service provider for consumer and enterprise applications, Diversinet provides cost-effective strong authentication products and services that reduce identity theft and improve brand trust. Diversinet's MobiSecure products and services leverage more than two billion existing mobile devices and PCs as strong authentication tokens. Diversinet’s MobiSecure suite of soft tokens and MobiSecure Authentication Service Center offerings are available on the leading intelligent mobile device platforms, including Symbian, Microsoft, RIM, Palm and Java-based phones, as well as on personal computers running Microsoft Windows.

Note to Editors and Analysts: Diversinet's Chief Security Officer Stuart Vaeth is available for one-on-one interviews to discuss the significance and merit of the FFIEC recommendations for online banking two-factor authentication. Over the last 20 years, Mr. Vaeth has been recognized as a thought leader in the information security industry and currently is the co-chair of the Initiative for Open Authentication (OATH) Technical Working Group. For more information, please contact Patrick Corman at 650-326-9648 or e-mail patrick@cormancom.com

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About Diversinet (OTCBB: DVNTF)

Diversinet is a leading provider of mobile-enabled personal authentication and security solutions for consumer and enterprise applications. Diversinet products and services protect a user’s identity, data and device for personal communications and commercial transactions. Diversinet’s MobiSecure soft token and MobiSecure Authentication Service Center enable financial service providers, mobile network operators and security service providers to rapidly develop, deploy and manage secure on-line services for more than 2 billion mobile device and PC users worldwide. MobiSecure is the industry’s first open mobile security platform to support OATH-compliant strong authentication on mobile devices and personal computers. For more information about the initiative for Open AuTHentication (OATH) visit www.openauthentication.org. Connect with Diversinet Corp. at www.diversinet.com.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future revenues of the company and success of current product offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

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Diversinet Contacts:

Public Relations

Patrick Corman
Principal
Corman Communications, LLC
+1-650-326-9648
patrick@cormancom.com

Investor Relations

Gary Geraci
President
The Equity Performance Group
+1-617-723-2373
gary@equityperfgp.com