Press Release: 1 Million Seat Milestone

PGP CORPORATION REACHES 1 MILLION SEAT MILESTONE, 400% INCREASE IN PGP UNIVERSAL BOOKINGS

New PGP Security Architecture, Comprehensive Encryption Product Suite, and PGP Storage Solutions Drive Enterprise Adoption

Palo Alto, CA/27 July, 2005 – PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced cumulative user licenses exceeded 1.17 million seats since company inception in mid-2002. PGP Corporation's announcement reflects its worldwide leadership in encryption solutions, the growing need to comprehensively manage regulatory risk, and accelerating enterprise customer adoption. The company also announced a 400% increase in PGP Universal bookings during the last 12 months, including purchases by Fortune® 100 and Fortune® Global 100 customers in Financial Services, Manufacturing, Pharmaceuticals, and Retail.

"In the last year, we responded to almost 60 enterprise-class RFIs, and in less than 7% was another vendor chosen," said Phillip Dunkelberger, CEO and president of PGP Corporation. "Why? Enterprises are not interested in gateway-only email security anymore. They now require a blended solution that protects all their data - gateway and desktop email, stored and laptop data, instant messaging sessions, FTP and batch file transfer. They want to avoid technology silos, so solutions must work together and share a common architecture. And they want to know they can extend their investments to new applications in the future."

"Enterprises are also requiring vendors to help lower their overall IT cost of ownership," continued Mr. Dunkelberger. "They are mandating simple integration into complex environments, ideally requiring no additional staff to operate or training for users. They are requiring products based on published standards that immediately interoperate with their business partners and customers. They also specify consolidated management and reporting to measure privacy, audit, and regulatory compliance. Enterprise customers choose PGP Corporation because we are the only vendor that meets their architecture, standards, and breadth of solution requirements all at once."

PGP Corporation also announced continued worldwide customer expansion, with PGP products now in use by 84% of the Fortune 100* and 66% of the Fortune Global 100**. Industries with strong compliance requirements are leading adopters, including 6 of the top 8 Financial Services, 9 of the top 12 Pharmaceutical, 8 of the top 12 Health Care, and 11 of the top 14 Manufacturing companies. PGP products are now used in 174 countries, representing 77% of United Nations membership. PGP Support is available worldwide. PGP products are available from more than 160 partners in 37 countries, including German and Japanese localized versions. The company attracted almost 4 million visitors to its website in the last year.

* Based on the latest Fortune 100 list, published April 2005

** Based on the latest Fortune Global 100 list, a new metric published April 2005; the Forbes® International 100 list, used previously, is no longer compiled

PGP Universal Architecture. The company's rapid expansion is based on accelerating acceptance of PGP Universal's automated data security architecture and central policy management. PGP Universal, designed for cost-effectiveness, allows enterprise customers to manage all their encryption applications under a single key and policy infrastructure. Its unique proxy architecture serves as a foundation for multiple applications - supporting email, disk storage, file transfer, and IM solutions today - and is flexible enough to protect other data types such as network stored data, voice over IP (VoIP), video, or customer database information in the future.

PGP Product Suite. The addition of PGP Whole Disk Encryption to new PGP Desktop 9.0 makes the PGP product suite the most comprehensive in the industry. Featuring PGP Universal for centralized management and recovery, the suite includes gateway email, desktop email, digital signatures, full disk encryption, virtual disk and file encryption, shredder, Zip, instant messaging, FTP, and batch solutions that can be mixed and matched as needed. All are based on accepted industry standards and proven through long-term use in varied network environments.

PGP Technology Partnerships. PGP Universal is rapidly becoming the preferred encryption solution for enterprises needing both encryption and best-of-breed email management. PGP Corporation has partnerships with all major email gateway vendors, including BorderWare, CipherTrust, Clearswift, IronPort Systems, MailFrontier, Mirapoint, Proofpoint, Sendmail, and Vontu. In addition, the company has strategic partnerships with industry leaders, including Aladdin, Research in Motion (RIM), and Symantec.

PGP-Caliber Security. PGP Corporation sets the standard for verifying that no backdoors or secret access exists in its product software. The company proves this by being the only commercial security vendor to publish source code for peer review. In the last year, PGP source code has been downloaded more than 66,500 times.

PGP Technology Leadership. During the last year, PGP Universal was named Best Encryption Solution ( SC Magazine Global Awards) and Best Security Solution for Healthcare ( SC Magazine European Excellence Awards) and was a finalist for Product of the Year (Information Management Awards). PGP Corporation was one of six finalists in SC Magazine Global Award's Best Security Company category.

About PGP Corporation
The global customer standard for encryption and digital-signature solutions, PGP Corporation develops, markets, and supports an integrated data security suite based a fully automated security architecture. Customers depend on PGP solutions for regulatory and audit compliance, to protect confidential company information, to secure customer data, and to keep identity information private. During the past ten years, PGP® technology has earned a global reputation for innovative, standards-based, trusted solutions. Contact PGP Corporation at www.pgp.com or +1 650 319 9000.

 

Legal Notice Regarding Forward-Looking Statements
Some of the statements in this press release are forward-looking, including the statements regarding the availability, plans, delivery, goals, development, expected features, expected benefits and competitive position of PGP products, including PGP Universal, PGP Corporate Desktop, PGP Workgroup Desktop, PGP Personal Desktop, PGP Mobile, and PGP SDK; and other PGP products implementing or leveraging the PGP technologies. All references made to product feature enhancements, improvements in platform support or additional functionality are subject to change at solely PGP Corporation's discretion. All descriptions of future PGP technology and products are subject to availability only if PGP Corporation decides to build them and when PGP Corporation decides to make them commercially available. Actual results could differ materially from those expressed in any forward-looking statements. Risks and uncertainties that PGP Corporation faces that could cause results to differ materially include risks associated with any unforeseen technical difficulties or software errors related to the final development and launch of any of PGP Corporation's products; any technological or standards changes in the security, encryption and authentications market which could make PGP Corporation's products less competitive or require feature changes in these products; any slowdown in the adoption by businesses of encryption suites, secure email, Internet technologies or related standard. The forward-looking statements contained in this release are made as of the date hereof, and PGP Corporation does not assume any obligation to update such statements nor to publicize the reasons why actual results could differ materially from those projected in such statements

PGP and the PGP logo are registered trademarks of PGP Corporation. Product and brand names used in the document may be trademarks or registered trademarks of their respective owners. Any such trademarks or registered trademarks are the sole property of their respective owners.