Fairfield, CT (July 9, 2004) - Competitive Technologies, Inc. (AMEX: CTT) announced today that it has signed an agreement with Avimir, L.L.C. to exclusively license and commercialize Avimir's animated graphical password security technology worldwide with the exception of Russia and South Korea. The internet security technology is a method of entering a password to gain access to computer databases and websites using dynamic images and/or rhythmic patterns such as music instead of alphanumeric characters to access predetermined internet information. A Patent Cooperation Treaty application has been filed in Russia designating contracting states in the U.S., Europe and Asia.

"Today's society demands sophisticated security protection in our increasingly interconnected technological world," said Aris D. Despo, CTT's VP Business Development. "This innovative graphic system with its infinite number of password patterns is easy to memorize and use. It presents strong revenue opportunities for CTT going forward and is an attractive and exciting addition to our portfolio. We will be offering non-exclusive licensing opportunities for this technology throughout our global network."

CTT obtained the password technology from Moscow/Alexandria, VA-based Avimir through its relationship with Trykor, Inc. Avimir was established to develop and commercialize novel solutions to the inherently more difficult password systems in use today. This is Avimir's maiden technology and represents a platform on which future licensees/collaborators will build.

A strategic alliance between CTT and Trykor was signed in January 2004. Trykor represents select CTT technologies in Russia and 25 other Eastern European and Central Asian countries. They also work with CTT to identify technologies created in the region which satisfy needs of CTT customers in the U.S. and globally.

Thomas R. Ruddy, President and CEO of Trykor, and co-inventor of the Avimir technology said, "This security solution is compelling in that we are leveraging our more dominant senses of hearing and vision, the rhythms of music and the dynamic images of pictures, that are more easily recalled when accessing secure areas such as personal portals. This is a security solution for the average user confounded by the use of too many similar and, therefore, risk prone alpha-numeric passwords needed in an average day spent online."

"The Avimir agreement is evidence of how the creation of key strategic alliances extends CTT's reach and strengthens our capabilities," said John B. Nano, CTT's President and CEO. "We have brought CTT to profitability, created an extensive portfolio of quality technologies and formed strong global alliances. Utilizing our portfolio to satisfy customer needs, CTT is building a recurring revenue stream and strengthening shareholder value."

About Trykor, Inc.

Trykor, established in 1993, is a technology commercialization and consulting firm with offices in Washington, DC, and Moscow, Russia, and affiliated offices located in the Netherlands. Trykor facilitates relationships and technology sales between organizations in the Former Soviet Union, including Eastern Europe, with firms in North America and Western Europe. Key clients have included firms seeking new technologies to improve their competitive position, government agencies involved in nonproliferation activities through the development of start-up technology-based enterprises for former weapons scientists, and non-profit organizations providing technology commercialization training to Russian research institutes and entrepreneurs.