Mississauga, Ontario (August 31, 2004) – Certicom Corp. (TSX: CIC), the authority for strong, efficient cryptography, today announced it disbursed approximately CDN $13.2 million to retire fully its senior convertible unsecured subordinated debentures (the “Debentures”), which matured on August 30, 2004. By repaying the Debentures the Company is now completely debt free.

“ The repayment of these convertible debentures is a key financial milestone as it eliminates the Company’s entire debt,” said Ian McKinnon, President and Chief Executive Officer. “We still have in excess of US$27 million cash and cash on hand and a strong balance sheet. Certicom is well positioned to pursue the execution of our long-term business strategy.”

In accordance with the requirements of the Debentures, Certicom had reserved 3,421,560 common shares for issuance in the event that the Debentures were converted. The Debentures were convertible into common shares at the holder’s option at a conversion price of CDN $3.85 per common share. The Debentures were repaid in full without any conversions having occurred, thereby avoiding dilution of the Certicom common shares.

About Certicom
Certicom Corp. (TSX: CIC) is the authority for strong, efficient cryptography required by software vendors and device manufacturers to embed security in their products. Adopted by the US Government’s National Security Agency (NSA), Certicom technologies for Elliptic Curve Cryptography (ECC) provide the most security per bit of any known public key scheme, making it ideal for constrained environments. Certicom products and services are currently licensed to more than 300 customers including Motorola, Oracle, Research In Motion, Terayon, Texas Instruments and XM Radio. Founded in 1985, Certicom is headquartered in Mississauga, ON, Canada, with offices in Ottawa, ON; Reston, VA; San Mateo, CA; and London, England. Visit www.certicom.com.

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Certicom, Security Builder, Security Builder Crypto, Security Builder SSL, Security Builder PKI, Security Builder GSE, movianVPN, movianCrypt and movianMail are trademarks or registered trademarks of Certicom Corp. All other companies and products listed herein are trademarks or registered trademarks of their respective holders.

*This news release contains references to earnings before interest, taxes, depreciation and amortization (EBITDA), which is defined as gross margin less selling and marketing, product development and engineering and general and administrative expenses. EBITDA is a non-GAAP earnings measure, which is used by Certicom to assess the operating performance of its ongoing business. Non-GAAP earnings measures do not have standardized meanings prescribed by GAAP and therefore may not be comparable to similar measures presented by other publicly traded companies.

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