CINDY A. COHN, ESQ.; SBN 145997
McGLASHAN & SARRAIL
Professional Corporation					
177 Bovet Road, Sixth Floor				
San Mateo, CA  94402
Tel: (415) 341-2585
Fax: (415) 341-1395
Attorney for Plaintiff
Daniel J. Bernstein

FRANK W. HUNGER
Assistant Attorney General
MICHAEL J. YAMAGUCHI
United States Attorney
MARY BETH UITTI  (Cal. SBN 64452)
Assistant United States Attorney
VINCENT M. GARVEY
ANTHONY J. COPPOLINO
Department of Justice
Civil Division, Room 1084
	901 E Street, N.W.
	Washington, D.C.  20530
	Tel. (Voice): (202) 514-4782
	     (Fax)  : (202) 616-8470 or 616-8460
Attorneys for the Defendants
UNITED STATES DEPARTMENT OF 
STATE et al.

		IN THE UNITED STATES DISTRICT COURT

	      FOR THE NORTHERN DISTRICT OF CALIFORNIA

		     SAN FRANCISCO HEADQUARTERS

DANIEL J. BERNSTEIN,	 	)	C 95-0582 MHP
			 	)
	Plaintiff,	 	)
			 	)
v.			 	)	STIPULATION FOR TEACHING
			 	)	DURING THE SPRING 1997
UNITED STATES DEPARTMENT OF	)	SEMESTER
 STATE, et. al.,		)
				)
	Defendants.		)
				)
________________________________)

     This agreement is made between the Defendant Secretary of
Commerce (who is now the authorized licensing official in this
area) (through counsel or his designee) (hereafter "the
Secretary") and the Plaintiff (both hereafter referred to as "the
parties") in lieu of Plaintiff seeking a Temporary Restraining 
Order or Preliminary Injunction with regard to his teaching
activities for the Spring 1997 cryptography course at the
University of Illinois at Chicago (hereafter "UIC") called
"Topics in Computer Science: Cryptography," Course Number MCS
494) (hereafter the "Spring 1997 course").  This stipulation
concerns solely plaintiff's teaching activities for the spring
1997 course, and is effective until the conclusion of plaintiff's
Spring 1997 course on May 10, 1997.

     1.  The Secretary hereby agrees that no license or other
authorization would be required, and, accordingly, the Secretary
would not initiate administrative enforcement proceedings for a 
civil penalty nor seek the imposition of criminal sanctions,
during the Spring 1997 semester or thereafter, based on:

     (a) Plaintiff engaging in classroom lecture and discussion 
in his Spring 1997 course about encryption items, including
instruction about theory and use of encryption items, or for
providing lecture notes and related teaching materials to both
U.S. and foreign students for purposes of instruction in the
Spring 1997 course, including (subject to para. 1(b) below) providing
or making available encryption software (including source code)
to his students in this course, except that any encryption
software (including source code) provided or made available to
students in the Spring 1997 course remains subject to the "EI"
controls with respect to its export from the United States as
provided under the EAR; and

     (b) Plaintiff's creation of a "Controlled Class Site" on the
UIC computer network (hereafter "site") as one means of providing
or making available encryption software (including source code)
to students in the Spring 1997 course, which provides for the
following features:

     (1)  The Controlled Class Site shall reject Internet
     addresses outside 128.248, the IP address for machines on
     the University of Illinois at Chicago computer network; and

     (2)  Access to the site, by means of a UIC computer as
     described in (1) above, through an initial page or screen
     containing: (i) a notice that the site includes
     cryptographic software subject to export controls under the
     Export Administration Regulations, and that anyone obtaining
     such software from the site cannot export the software
     without a license; and (ii) a mechanism enabling those who
     access the initial page or screen to affirmatively
     acknowledge the foregoing notice before proceeding.

It is the parties' understanding that all computers that are part
of the UIC computer network are located in the United States and
that the network does not provide for a host link to a computer
outside of the United States.  The provisions of this paragraph
are agreed to by the Secretary for the sole purpose of
temporarily addressing the circumstances involving the
plaintiff's Spring 1997 course, and do not constitute a binding
construction or application of governing regulatory requirements,
including under 15 C.F.R. 734.2(b)(9)(ii), in connection with 
any other matter.

     2.  The parties agree that if Plaintiff takes any other
action that the Secretary determines is contrary to the Export
Administration Regulations, the Secretary is not precluded from
initiating administrative enforcement proceedings for a civil
penalty nor from seeking the imposition of criminal sanctions.

     3.  This agreement is entered into between the Secretary of
Commerce (through counsel or other designee) and Plaintiff solely
with respect to the Plaintiff in this action, Daniel J.
Bernstein, and has no effect or precedent as to any other
individual or entity.

     4.  Reservation of Positions:

     (a) Plaintiff: Based on the foregoing provisions, plaintiff
agrees that he will not separately seek a Temporary Restraining
Order or Preliminary Injunction with regard to his teaching
activities for the Spring 1997 course.  Plaintiff expressly
retains the right to raise the issue of the impact of the export
controls on the teaching activities of plaintiff and others
similarly situated in the context of his wider challenge to the
facial constitutionality of the export controls.  By this 
agreement, the Plaintiff does not concede that the terms herein
are lawful as a matter of statutory or constitutional law, and
specifically preserves all claims, positions, and arguments he
has or may raise in this action.
    (b) Defendants:  By this agreement, the Secretary of
Commerce, and any other named defendants who may remain in this
case, do not concede that the application of any export 
regulation under the EAR to encryption items, including software
and technology, are unlawful as a matter of statutory or
constitutional law, nor waive any defense, position, or argument
that has been or may be raised in this case.  Defendants retain
all substantive, jurisdictional, and procedural defenses to any
claims that have been or may be raised by plaintiff in this
action.  In addition, the Secretary of Commerce and any other
defendants do not by this agreement concede or acknowledge that
there is any legal basis for the entry of any judgment or
injunction by a court, including a temporary restraining order,
preliminary injunction, permanent injunction, or declaratory
judgment enjoining or declaring invalid any aspect or provision
of the Export Administration Act, Export Administration 
Regulations, the International Emergency Economic Powers Act,
Arms Export Control Act, the International Traffic in Arms
Regulations, or any other law or regulation, including those
provisions referenced herein.

     5.  This Stipulation contains the entire agreement between
the parties hereto with regard solely to Plaintiff's teaching
activities during the Spring 1997 course.  It is executed without
reliance upon any additional representation of either party.

For Defendants:				For Plaintiffs:

DATE: (written) January 10, 1997	DATE: (written) January 13, 1997

FRANK W. HUNGER				McGLASHAN & SARRAIL
Assistant Attorney General		Professional Corporation

MICHAEL J. YAMAGUCHI
United States Attorney


(signed) Anthony J. Coppolino		(signed) Cindy A. Cohn

VINCENT M. GARVEY			CINDY A. COHN
ANTHONY J. COPPOLINO			McGLASHAN & SARRAIL
Department of Justice			Professional Corporation
Civil Division, Room 1084		177 Bovet Road, Sixth Floor
901 E Street, N.W.			San Mateo, CA  94402
Washington, D.C.  20530


			     ORDER

IT IS SO ORDERED:



					_______________________________
					United States District Judge