EVANSTON, Ill., September 19, 2007 - Ultra-secure data transmission is a critical component in military and corporate communications, but to be successfully deployed, it must come at a reasonable cost and convenience.  That is the core innovation of NuCrypt www.nucrypt.net , which developed a cost-effective solution that uses the physical properties of light in a novel way to provide ultrahigh security over optical communication networks.  NuCrypt has been awarded a Challenge Grant by The Homeland Security Innovation and Entrepreneurship Center at Nort hwestern University (HSIEC) www.hsiec.org, in partnership with the Illinois Technology Development Alliance www.itda.biz. HSIEC was formed to catalyze the development of homeland defense and security technologies, products and services.  This is the 15th grant awarded by HSIEC since the center was formed in October 2005.   NuCrypt uses the inherent noise in light to enhance the best state-of-the-art encryption technology while remaining compatible with conventional optical infrastructure.  NuCrypt's AlphaEta product uses commercially available off-the-shelf components.  It operates at high data rates, making it the first practical, physics-based ultrahigh security optical encryption technology on the market. "Until this point, NuCrypt has focused on product development.  Now that AlphaEta is ready for commercial introduction, the Challenge Grant is instrumental in helping fund our marketing efforts and strengthening our market position," said Prem Kumar, president of NuCrypt.  "We will be introducing AlphaEta at MILCOM2007, a premier event targeted at  the mi litary communications industry, in October."   In addition to homeland security applications, commercial applications include telecommunications, financial services and corporate security.   "Access to ultrahigh security that is compatible with current long-haul infrastructure is crucial for military and sensitive corporate applications," said Bret Johnson, director of HSIEC.  "NuCrypt is a great example of a company that has developed solutions aimed at the homeland security market that also have viable commercial applications for the business market."   Illinois Entrepreneurship Network Challenge Grants provide matching funds to help high-growth small businesses achieve critical business milestones.  Companies supported by the HSIEC also receive important business services including management assistance and coaching, product development and technology commercialization advice, market intelligence and access to angel and venture capital.   About HSIEC HSIEC delivers specialized business development assistance in homeland security as part of the Illinois Entrepreneurship Network through a joint effort between Northwestern University and the Homeland Security Market Development Bureau (HSMD) within the Illinois Department of Commerce and Economic Opportunity (DCEO). The Center launched in October 2005 with $350,000 in Opportunity Returns support provided by Gov. Rod R. Blagojevich.  For more information, visit www.homelandsecurityiec.org. About HSMD Gov. Rod R. Blagojevich launched HSMD in February 2005 to support businesses engaged in the homeland security industry.  The bureau offers a variety of investment tools designed to help existing Illinois companies expand operations and utilize available state and federal programs and services.  For more information, visit www.hsmd.illinois.gov.   About the ITDA The Illinois Technology Development Alliance (ITDA) is a private, nonprofit 501(c)(3) corporation providing entrepreneur training, commercialization, and technology transition services for government, major research institutions, and corporations. The organization is funded through a combination of private and public sources including corporate and foundation contributions, as well as contracts with NASA and the Office of Naval Research.