This deliverable is a report on the development progress of the Homomorphic Encryption Embedded Engine (HE). The HE tool provides both security and privacy to the SPHINX solution. The tool makes use of partial homomorphic encryption techniques to allow user to search in the encrypted domain. This eliminates the need for downloading and decrypting all stored data and thus ensures security of the data. With the help of this tool, healthcare professionals can store data in central repositories with increased security. The tool also provides the feature for searching in each other’s database, given that prior permission is already granted. Alongside this, the tool provides network traffic anonymization capability, which adds privacy to the network traffic data. A pseudo-anonymized version of the network traffic is returned to the user, with added capability of deanonymizing the data for latter use. This report elaborates on these functionalities and helps explain with the help of screenshots the different interfaces that it provides. This report is a versioned document, and this is the first version (v1).