Press Release: Addition of $10 Million Growth Capital

PGP Corporation Announces Addition of $10 Million Growth Capital

Funding will Accelerate R&D, Continue Expansion of
"Deploy-Once" Encryption Platform

Palo Alto, CA/07 December, 2005 – PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced it has received $10 million in capital funding from DCM-Doll Capital Management, Venrock Associates, SVB Capital, and Silicon Valley Bank. The new round will complement strong product revenue from the award-winning PGP® security suite and accelerate expansion of the PGP "deploy-once" enterprise encryption platform.

"The PGP vision of pervasive data security offers compelling value in today's highly regulated environment," said Robert Theis, general partner with DCM-Doll Capital Management. "As experts in the security space, we believe that mandate is even more relevant today."

Building on the successful file, virtual disk, and whole disk encryption features of its encryption platform, PGP Corporation will expand its R&D focus on network storage and mobile security. At the same time, the company will continue to facilitate integration with third-party products and expand the PGP ecosystem.

"PGP Corporation is a mature company with a solid financial structure and excellent operating performance," said Ray Rothrock, managing general partner at Venrock Associates. "Results like the third quarter of this year, with bookings the highest in the company's history, mean new investments can be dedicated to furthering product development and innovation."

Recent third-party studies have underscored PGP Corporation's leadership in the worldwide email encryption and security markets. In the latest Information Security Study conducted by TheInfoPro (TIP), for example, information security professionals from North American Fortune® 1000 and mid-sized enterprises, government agencies, and academic institutions rated PGP Corporation as the vendor most often used for both email and data encryption software. For the second consecutive year, PGP Corporation has also been named a finalist in the Best Security Company category of the SC Magazine Global Awards for 2006.

"Because we understand security threats and mitigation strategies, our customers continue to ask us to extend PGP encryption platform protection to data on a variety of devices," said Phillip Dunkelberger, president and CEO of PGP Corporation. "In response, we keep adding new applications such as PGP® Support Package for BlackBerry®, developed by Research In Motion (RIM®) to extend PGP security to wireless BlackBerry Handhelds. By forming partnerships with telecom providers, we can offer customers a new channel that responds to their need for mobile security.

PGP Corporation also continues to extend its worldwide footprint. The release of PGP Desktop 9.0.3 added localized products for Germany and Japan, including full support for double-byte character sets and translated product documentation. "These two markets represent some of today's most sophisticated security users," added Mr. Dunkelberger. "In addition, both have unique legal and business requirements with which they must comply. Being able to respond to key customer segments with encryption solutions that meet their specific needs, support all major standards, and interoperate worldwide is a high priority."

About PGP Corporation
The global customer standard for encryption and digital signature solutions, PGP Corporation develops, markets, and supports an integrated data security suite used by more than 30,000 enterprises, businesses, and governments worldwide, including 84% of the Fortune® 100, 66% of the Fortune® Global 100, and thousands of individuals and cryptography experts. 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 10 years, PGP® technology has earned a global reputation for innovative, standards-based, trusted solutions. The flexible PGP suite allows customers to phase-in gateway, partner, mobile or internal email security; data storage protection for laptops, desktops, and removable media; IM encryption; and FTP/batch transfer security using a single key management and recovery infrastructure. PGP Corporation is the only commercial security vendor to publish source code for peer review. 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 statements regarding the availability, plans, delivery, goals, development, expected features, expected benefits and competitive position of 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 future descriptions of 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 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.