Press Release: Deutscher Sparkassenverlag Partnership

PGP CORPORATION AND DEUTSCHER SPARKASSENVERLAG ANNOUNCE STRATEGIC PARTNERSHIP

Integrates PKI, X.509 digital certificates, and smart cards with PGP Universal, creating an integrated email & digital signature solution for Germany's largest banking group

Palo Alto, CA, Stuttgart, Germany/09 March, 2005 – PGP Corporation, a global leader in enterprise encryption solutions, today announced that it has formed a strategic partnership with Deutscher Sparkassenverlag (DSV), the service provider and integrator for Sparkassen-Finanzgruppe (S-Finance Group), Germany's largest banking group with more than 500 institutions. The partnership will create an integrated email encryption and digital signature solution combining PGP Universal's automated encryption and key management with the DSV PKI, S-TRUST branded X.509 certificates, smart cards, and card readers. This will become the recommended email security solution for all S-Finance Group banks, partners, and enterprise customers.

"Today few German banks and enterprises have deployed comprehensive digital signature or email encryption, despite increasing requirements for information privacy and security," said Phillip Dunkelberger, president and CEO of PGP Corporation. "DSV had already built the required PKI and X.509 certificate infrastructure and issued millions of smart cards, but did not have an efficient way to implement email encryption and digital signatures. With PGP Universal, DSV will be able to use its existing infrastructure immediately and help the S-Finance Group rapidly reach its email security and digital signature objectives."

The solution combines PGP Universal for automatic email encryption, decryption, digital signatures, and automated key management with DSV smart cards, card readers, and X.509 certificates. The joint solution removes traditional barriers to adoption by ensuring the interoperability of OpenPGP, standard X.509 and DSV (S-TRUST branded in partnership with VeriSign) certificates, and S/MIME. PGP Universal's self-managing key architecture works with the DSV PKI to provide a solution scalable to S-Finance Group's more than 500 banks and 23,000 locations. The combined PGP Universal and DSV solution will be available exclusively from DSV's DSD (Deutscher Sparkassen Datendienste) business unit to S-Finance Group banks, their partners, and merchants as well as other interested German-language customers.

"Customers will profit from a proven, integrated security solution, purchased from a trusted partner, offering complete support," continued Mr. Dunkelberger. "As a result of this partnership between DSV and PGP Corporation, S-Finance Group members will be able to automate secure, inter-bank email communications and employ multi-factor authentication using DSV smart cards."

"This is a major expansion of PGP products into the financial services sector, already a leading adopter of PGP technology," said Mr. Dunkelberger. "This relationship validates our PGP Universal philosophy of certificate interoperability, multi-factor authentication, automated end-to-end security, and operation in large, diverse environments."

DSV, S-TRUST, and Smart Cards
DSV is one of the largest German providers of smart cards, with a market share of about 60%, based on about 45 million cards issued by Deutscher Sparkassenverlag. DSV is helping the Sparkassen and Landesbanken transform the Internet into a trusted communications and commerce vehicle by allowing consumers to use bank cards that are also trusted smart cards. DSV also provides the technology by which smart cards will be qualified for digital signatures according to German law; to date, more than 1 million of these cards have been delivered. In partnership with VeriSign, DSV introduced the first PKI for bank payment transactions in 1999 under its S-TRUST brand; DSV currently operates the certificate authority for Sparkassen-Finanzgruppe (S-Finance Group).

About Deutscher Sparkassenverlag (DSV)
DSV, based in Stuttgart, was formed in 1935 as a service provider for Sparkassen-Finanzgruppe institutions. In addition to providing technology, systems integration, and security solutions, DSV units provide a full range of services, including books, magazines, forms, ad campaigns, software solutions, technical equipment used in finance institutions or any kind of payment processes, and marketing of digital content for enterprises within Sparkassen-Finanzgruppe and its enterprise clients. DSV has 1,600 employees and a turnover of 700 million euro, making it one of Germany's largest media organizations. DSV also offers products and services to enterprises outside the Sparkassen organization. Sparkassen-Finanzgruppe (S-Finance Group) is Germany's largest banking group, with more than 500 affiliated banks.

About PGP Corporation
Recognized worldwide as a leader in enterprise encryption technology, PGP Corporation develops, markets, and supports products used by more than 30,000 enterprises, businesses, and governments worldwide, including 90% of the Fortune 100 and 75% of the Forbes International 100. PGP products are also used by thousands of individuals and cryptography experts to secure proprietary and confidential information.

During the past ten years, PGP® technology has earned a global reputation for standards-based, trusted security products. It is the only commercial security vendor to publish source code for peer review. The unique PGP encryption product suite includes PGP Universal—an automatic, self-managing, network-based solution for enterprises—as well as desktop, mobile, FTP/batch transfer, and SDK solutions. Contact PGP Deutschland AG at +49 69 800 706 444, PGP Corporation at www.pgp.com or +1 650 319 9000.

Media & analyst contact for Deutscher Sparkassenverlag:
Herr Thilo Weinert
Tel: +49 711 782 2736
Fax: +49 711 782 1001
Email: thilo.weinert@dsv-gruppe.de

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.

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