Press Release: Full Disk Encryption Capability Added to PGP Universal

PGP CORPORATION ADDS FULL DISK ENCRYPTION CAPABILITY TO PGP UNIVERSAL "DEPLOY-ONCE" PLATFORM

Leader in Security Solutions Provides Multi-Layer Security for All Data Stored on Laptops, Desktops, Servers, and Removable Drives to Avoid Unauthorized Data Access or Misuse

Palo Alto, CA/03 October, 2005 - PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced its PGP® Whole Disk Encryption product line. PGP Whole Disk Encryption offers multi-layer defense against laptop, desktop, and server data loss by combining four disk encryption solutions. New products are available as part of the PGP Universal "deploy-once" encryption platform, including central policy, key management, deployment, passphrase recovery, and LDAP integration, or as a separate desktop product.

This four-in-one PGP Whole Disk Encryption solution includes:

• Full disk encryption when a laptop/desktop/server is closed/turned off
• Individual volume, folder, and file encryption when a laptop/desktop/server is on/open
• Data encryption when stored or backed-up on external devices
• Secure deletion of information stored on disks

Over the last 3 years, enterprise customers have licensed more than a half-million seats of PGP disk encryption; enterprise adoption has accelerated with the availability of the PGP Universal platform management tools. "H&R Block selected PGP Corporation's full disk product to extend encryption of customer information across our enterprise," said Marc West, CIO at H&R Block, a diversified company delivering tax, financial, mortgage, and business products and services . "PGP solutions are one of the ways ACS provides encryption protection of client data entrusted to our care," said Ann Vezina, managing director of ACS Business Process Solutions, a Fortune ® 500 provider of diversified business process and information technology outsourcing solutions.

"Enterprises are focusing more attention on Information Security concerns within their networks and are looking at an array of core technologies to address those concerns," said Henry D. Nissenbaum, managing director for information security research at TheInfoPro, an independent research network. "Among those core technologies are secure, reliable, and manageable encryption. In our latest study, we interviewed more than 250 Information Security professionals and found PGP solutions for email and data encryption to be by far the most widely used."

Regulatory Compliance & Remediation Costs
With 20 states now requiring customer disclosure of security breaches and a number of federal statutes in committee, companies are increasingly aware of the financial and customer reputation risks associated with lost data. In a recent survey of 14 companies that had lost information and been required to notify customers, Ponemon Institute found the average remediation cost to be $13 million, with costs ranging from a minimum of $475,000 to a maximum of $52 million.

"We conducted in-depth conversations to determine the direct and indirect costs of these incidents and found companies averaged a direct cash outlay of $5 million for detection, legal fees, notification, and increased customer service," said Dr. Larry Ponemon, chairman of Ponemon Institute. "Adding indirect expenses of $8 million for employee time consumed and lost customers, the cost to recover from a lost data incident was more than $13 million. Companies in financial services, insurance, telco, and technology experienced much higher costs, primarily due to brand damage and lost customer confidence." Highlights of the report are available on the PGP website: www.pgp.com

PGP Full Disk Solutions
PGP Whole Disk Encryption for Professionals combines the best features of single-purpose data encryption products into a multi-layer PGP desktop solution. Instead of providing a single layer of security, PGP solutions are comprehensive, rendering turned-off devices useless if stolen, keeping individual files and folders secure when devices are turned on, protecting data when stored on external and backup devices, and erasing deleted data completely and permanently.

PGP Whole Disk Encryption for Enterprises adds a PGP Universal Server for administration, configuration, silent installation, and policy management supporting Microsoft MSI and Active Directory. Using a sector rather than a file-based design allows PGP products to operate in the background, encrypting and decrypting files (even during the initial encryption process) without disrupting normal usage. Unique recovery passphrase features allow administrators to provide users one-time access, eliminating the use of single global administrative passwords inherent in other industry solutions. Once a PGP Universal Server has been deployed, additional features can be licensed and other elements of the PGP Universal "deploy-once" platform can be implemented - including gateway and desktop email encryption, digital signatures, instant messaging security, server-to-server encryption, and tape/archival protection.

"Our customers are asking for a security solution platform that enables them to add encryption applications as needed. The use of the PGP platform allows IT organizations a cost-effective way to protect organizations from both present and future threats while providing compliance on encryption of data. SHI is eager to add the PGP Whole Disk Encryption solution to our product portfolio to ensure that our customers get a best-of-breed security solution," said Al Fitzgerald, director of sales at SHI, a global procurement outsourcing company and leading business-to-business solution provider.

Even Experts are Vulnerable
Without sufficient precautions, organizations and even expert individuals are vulnerable. Phil Zimmermann, one of the industry's most experienced and respected encryption experts, was a victim of laptop thieves. "Laptop theft is so common that any executive can become a target," commented Mr. Zimmermann. "I had a laptop stolen two different times in European train stations. As one guy distracted me, his accomplice grabbed my computer from atop my suitcase. When I went to the police station, the local authorities pointed at piles of similar complaints. Fortunately, I did have PGP disk security on my laptop, but this happens even when you are extremely careful. Don"t assume it can"t happen to you."

"With workforces becoming increasingly mobile, the need for secure laptops and mobile devices has moved beyond a convenience issue to one that is critical for regulatory compliance and the preservation of intellectual property," said Steve Winandy, director of advanced technologies at CDW Corporation, a Fortune ® 500 provider of technology products and services. "PGP Corporation's full disk encryption solution is an attractive option to help companies enhance security and protect their data against the growing number of threats."

Languages, Availability, & Pricing
English, German, and Japanese versions of PGP Whole Disk Encryption for Enterprises are available immediately. PGP Whole Disk Encryption for Professionals versions are scheduled for release in November 2005. Single-unit pricing for a Perpetual License and the first year of Software Insurance is $249 for PGP Whole Disk Encryption for Enterprises and $149 for PGP Whole Disk Encryption for Professionals. Volume discounts are available through PGP reseller partners worldwide.

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.