Press Release: PGP Deutschland AG

PGP CORPORATION ACQUIRES GLÜCK & KANJA TECHNOLOGY AG, FORMS PGP DEUTSCHLAND AG

Major PGP Corporation expansion in the European market

Palo Alto, CA/07 March, 2005 – PGP Corporation, a global leader in enterprise encryption solutions, today announced that it has acquired Glück & Kanja Technology AG, a German vendor of award-winning security products used by major accounts such as Airbus, Audi, and Siemens. The companies also announced the formation of PGP Deutschland AG from their combined German operations, based in Frankfurt. Glück & Kanja Technology AG adds to PGP Corporation's expertise in enterprise S/MIME, X.509, and legacy PKI integrations, helping expand solutions for global customers running diverse security environments.

"The European market has unique and exacting requirements for privacy, encryption, and security solutions," said Phillip Dunkelberger, president & CEO of PGP Corporation. "Glück & Kanja Technology AG brings a deep understanding of customer requirements and an excellent security product portfolio based on its CryptoEx brand. Our companies share a product vision about making security usable and easily adopted by enterprise customers, especially offering solutions that operate transparently over standards such as OpenPGP, X.509 and S/MIME for maximum customer flexibility, ease of deployment, and administration."

"We created PGP Deutschland AG to formalize our long-standing commitment to German-language and European customers," continued Mr. Dunkelberger. "By combining PGP Corporation's and Glück & Kanja Technology AG's resources, enterprise customers will now benefit from PGP development, training, and support from a Frankfurt-based, German-registered company."

"The new PGP Deutschland AG will create a greater global presence for PGP Corporation in the encryption market, providing significant advantages to our joint, multi-national customers," said Christian Kanja, CEO of Glück & Kanja Technology AG. "Our combined resources offer customers an industry-leading product portfolio, and our German-language presence ensures unique customer requirements will be met locally." Harald Glück, Christian Kanja, and Felix Storm will be joining the PGP Deutschland AG management team.

Following the acquisition, PGP Deutschland AG will continue to sell and support CryptoEx products, including investments in ongoing maintenance and development. Because the CryptoEx and PGP® Desktop products are complementary, the joint company will ensure product line interoperability, particularly with PGP Universal. Future PGP products will encompass the best of both product portfolios. PGP Corporation has not acquired Glück & Kanja Consulting AG, which will continue to operate as an independent entity, providing consulting and integration services. PGP Deutschland AG expects to continue its close working relationship and partnership with this organization.

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.

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 is a registered trademark and the PGP logo is a trademark 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.