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Police Communications Press Release

December 17, 2004

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EFJI Subsidiary Transcrypt Introduces Digital Encryption for Analog Radios

Transcrypt Expected to Launch Dark Star Line in Early 2005

Washington, DC - EFJ, Inc. (NASDAQ: EFJI) announced that its Transcrypt International subsidiary will introduce digital encryption for analog radios in early 2005. The new Dark Star product line offers analog radio users the ultimate level of communications security. Due to its advanced level of encryption, Dark Star is ideal for government, military, and police use and is appropriate for applications where privacy is absolutely critical to sensitive, tactical operations.

This proprietary technology developed by Transcrypt is designed to help protect two-way radios users from eavesdroppers, including the most aggressive and sophisticated adversaries. Dark Star works by digitizing the voice and encrypting the resulting data using a sophisticated cipher. Dark Star provides excellent voice quality in poor environments and has a virtually imperceptible impact the range of radio operation. Additionally, the new product will have backwards compatibility with Transcrypt's 460 series scramblers, which are used by many of the 10,000+ radio systems already using Transcrypt technology. The first Dark Star modules to be released will install into Motorola Professional Series portable analog radios.

"Digital encryption is truly the next generation of security for analog radios. Transcrypt's research and development into this proprietary technology has resulted in a level of security that before had only been available to digital radio users" stated Michael E. Jalbert chairman and CEO of EFJ, Inc. "There is increasing interest in products that offer more advanced levels of security as we fight the war on terror worldwide," added Jalbert.

"Analog radios are still used by the majority of radio systems throughout the world and these systems need a high level of encryption to protect their radio users, especially those in the military and in public safety," said Michael Kelley, general manager of Transcrypt. "Dark Star will place Transcrypt at the forefront of analog radio encryption technology as we help protect soldiers and police throughout the world."

Established in 1978, Transcrypt International is a leader in secure voice communication solutions for international, commercial and government customers, delivering land mobile radio security products in over 2,500 different configurations, on over ten thousand communication systems in more than 120 countries since 1978. The company designs, manufactures, and markets information security hardware and software that utilizes sophisticated scrambling and encryption techniques to protect sensitive voice and data transmissions. For more information, visit www.transcrypt.com.

About EFJ, Inc.
EFJ, Inc is the Washington, DC based parent company to industry-leading wireless telecommunications solutions businesses. EFJ, Inc. is home to the EFJohnson Company, one of the first developers of Project 25 mobile communications products compliant with federal government interoperability standards, and Transcrypt International, a leader in secure voice communication solutions. EFJohnson and Transcrypt International are wholly owned subsidiaries of EFJ, Inc. For more information, visit www.efji.com.