Press Release: PGP Corporation Exceeds $100 Million in Cumulative Product Bookings

Extends Leadership in Data Security and Encryption

Palo Alto, CA/02 October, 2006 - PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced that it has exceeded $100 million in cumulative product bookings over the course of its 4 years as a newly formed company since its separation from Network Associates, including more than $40 million in the last 12 months.

Ray Rothrock, managing general partner of Venrock Associates, a renowned venture capital firm focusing on companies in information technology, healthcare, and emerging technologies, said, "Having been involved with nearly 400 startup companies, we recognize just how impressive it is for a software company to exceed $100 million in bookings in just 4 short years of existence. PGP Corporation has established itself as a company to watch. It boasts a strong management team, robust product offerings, a solid customer roster, and a great market space in which to compete and win. We congratulate the company on this fantastic achievement."

The company also realized notable results for the first half of 2006, as new orders grew in excess of 40 percent compared with the first half of 2005. The first two quarters of 2006 represented the company's 15th and 16th consecutive quarters of growth. Enterprise acceptance of the PGP® Encryption Platform was particularly strong, with PGP® products now in use at 94 percent of the 2006 Fortune® 100 companies.

"We are extremely pleased to be able to announce a growth rate that is far in excess of the industry," said Phil Dunkelberger, president and CEO of PGP Corporation. "We are also very gratified that it's now been independently validated by TheInfoPro survey that PGP Corporation is the lead vendor in use and planned for use for both email and data encryption software based on its winter 2005/06 survey of North American enterprises."

PGP Corporation announced major customer wins, including American National Insurance (ANICO), Catholic Charities, HSBC, and Sony Computer Entertainment. The bulk of the company's new enterprise wins have been driven by its patented key management capabilities.

The company received numerous accolades for its thought leadership from several third-party influencers. PGP Corporation was designated an Info Security "Hot Company" for 2006 by Info Security Products Guide, the world's leading publication on security-related products and technologies. The company also announced that it has been positioned in the Visionaries quadrant in the newly released Gartner "Magic Quadrant for Mobile Data Protection, 1H06" report. Also of note, leading weekly IT trade publication eWEEK selected PGP® encryption as one of the top 25 most influential products of the first 25 years of enterprise personal computing.

"With the number of threats to confidential information growing daily and global regulators insisting that enterprises take steps to protect customer, employee, and partner data, PGP Corporation is finding an increasingly receptive audience," Dunkelberger continued. "Our 4 years have been marked by constant innovation, including shipping multiple products in three languages. PGP Corporation continues to lead in encryption usability, meeting the needs of customers around the world. We're also pleased to have established relationships with more than 200 channel partners in 174 countries, leveraging our proven technology wherever information resides."

PGP Corporation announced two new products in the first half of the year, including an extension to the PGP Encryption Platform that allows enterprises to address the risks presented by unauthorized access to shared files. PGP® NetShare empowers users to encrypt confidential information on shared storage networks and control exactly who has access to that information. The company also announced extensions to its PGP® Command Line product line that enable it to run on IBM® zSeries® and IBM® iSeries™ mainframe systems.

The first half of 2006 also marked a number of operational milestones. The company expanded its international footprint with the establishment of PGP Japan K.K. PGP Corporation now employs hundreds of people in five centers of excellence in Palo Alto, Salt Lake City, Frankfurt, London, and Tokyo.

About PGP Corporation
PGP Corporation, a global security software company, is the leader in email and data encryption. Based on a unified key management and policy infrastructure, the PGP® Encryption Platform offers the broadest set of integrated applications for enterprise data security. PGP platform-enabled applications allow organizations to meet current needs and expand as security requirements evolve for email, laptops, desktops, instant messaging, PDAs, network storage, FTP and bulk data transfers, and backups.

PGP solutions are used by more than 30,000 enterprises, businesses, and governments worldwide, including 94 percent of the Fortune® 100 and 76 percent of Germany's DAX index. As a result, PGP Corporation has earned a global reputation for innovative, standards-based, and trusted solutions. PGP solutions help protect confidential information, secure customer data, achieve regulatory and audit compliance, and safeguard companies' brands and reputations. 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 PGP Corporation's sole 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, regulatory, 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. RIM, Research In Motion, and BlackBerry are the registered trademarks of Research In Motion. 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.