Press Release: Highest Quarterly Bookings, Strong Revenue Growth

PGP CORPORATION ANNOUNCES HIGHEST QUARTERLY BOOKINGS, STRONG REVENUE GROWTH, AND CONTINUED TECHNOLOGY INNOVATION

Increasing demand for PGP Universal product line, rapid acceptance by DAX Index, "deploy-once" platform adoption highlight 3Q 2005

Palo Alto, CA/25 October, 2005 - PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced results for the third quarter of 2005. Bookings for the quarter ended September 30, 2005, were the highest in the company's history. Other highlights include an expanded product portfolio, adoption by 76% of Germany's DAX Index companies, and continued innovation in security solutions.

Bookings for the third quarter represented a 45% increase over the second quarter of 2005 and a 72% increase over the third quarter of 2004. Growth continues to be driven by strong demand for PGP Universal, with more than 1,000 customers to date representing a 40% increase over 2Q 2005.

"Our results continue to exceed expectations," noted Alex Doll, PGP Corporation's chief financial officer. "Not only did we enjoy a double-digit million-dollar quarter, but we also booked the largest single order in the company's history."

Adoption of PGP solutions by Fortune® 100 and DAX companies remains strong. "Enterprise-class customers continue to rely on us to address threats to data security and comply with regulations that require protecting confidential information," said Phillip Dunkelberger, president and CEO. "They also demand time-tested solutions that interoperate with their established infrastructure; are easy to use, deploy, and manage; and lower their costs." Added Mr. Dunkelberger, "Why PGP Corporation? Because we offer the most compelling product suite in the industry. Our solutions are mature, innovative, non-proprietary, and vetted by researchers, technologists, and customers globally. Companies often choose us because they will not risk their reputation, brand, and proprietary information on solutions that are not comprehensive."

PGP Product Suite. The company continued to expand its product portfolio with the introduction of the PGP® Whole Disk Encryption product line. Available either with PGP Universal or as a stand-alone desktop product, PGP Whole Disk Encryption provides four types of security: full disk encryption; individual volume, folder, and file encryption; data encryption; and secure deletion of information stored on disks. Rapid adoption of PGP Whole Disk Encryption has accelerated with the availability of the PGP Universal platform management tools.

PGP Technology Leadership. The "deploy-once" PGP enterprise encryption platform supports the PGP vision of making encryption more available to everyone - enabling customers to simply license and turn on additional PGP encryption applications and management functions, as needed. PGP solutions receive consistent accolades from leading industry publications such as these:

• "PGP Universal solves a real security problem--enterprise-level encryption." - Tom's Networking

• "PGP Desktop Pro 9.0, with its free public-key registry, makes this powerful [public-key cryptography] technology available to everyone." - PC Magazine

PGP encryption solutions are repeatedly singled out for industry recognition. PGP Universal, PGP® Desktop Professional, and PGP® Command Line have all been selected as finalists in the 2005 Information Security Product category of the Information Management Awards, the premier European recognition of excellence and innovation in the management of business information.

PGP Technology Partnerships. Technology partnerships with other industry leaders continue to yield new security solutions. The new PGP® Support Package for BlackBerry®, developed by Research In Motion® (RIM), was created in response to demand by joint customers for end-to-end PGP security on wireless handheld devices.

PGP Channel Coverage. PGP Corporation also continued to expand its channel operations during the quarter, signing a new distributor in Switzerland/Norway. The company has a global network of 175 authorized resellers in 37 countries.

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.