Entrust, one of Baltimore Technologies' main international rivals, has won an Internet security contract with the Chambers of Commerce of Ireland.

It is understood the chambers will announce later today that it has signed a security contract with US firm Entrust and the Irish security firm Entropy.

Entrust is one of Baltimore's leading international competitors and has been contracted to supply the chambers with its security software.

It is understood the chambers approached Baltimore about the contract but that it does not supply this type of technology.

Using technology from Entropy and Entrust, the chambers will offer an Internet security service to small and medium sized enterprises in the Republic.

This service will provide authentication and validation to companies transacting business online. It will also provide a more secure environment to protect credit card numbers.

This latest e-commerce initiative by the chamber follows an existing Internet security contract which the chamber signed with Baltimore in April 1999.

Under this agreement, the chambers licensed Baltimore's software to establish a service called ChamberCERT. This service would have enabled the chamber to issue digital certificates to member organisations for secure authenticated Internet business including web banking, online shopping and e-mail.

However, Mr Connor Brennan, deputy chief executive of the chamber, said last night this initiative was "under review" as it was not yet up and running 18 months after the original launch date.

He said a lack of market demand for digital certificates had impacted on the chamber's plan.

The chambers have spent £100,000 (€126,974) on this initiative.