EFS file losing encryption when saved on floppy?

From: Access to an encrtypted file in W2k Pro (anonymous_at_discussions.microsoft.com)
Date: 01/31/04 

Date: Sat, 31 Jan 2004 02:51:31 -0800

Hi all

Q1 If a file is encrytpted with EFS and you copy/save/move
it to a floppy disk does this cause it to lose its
encryption? If this is correct is this not a high
security risk?

Q2 A general question. Can a floppy disk only be
formatted with FAT. If so why?