PGP Corporation

PGP Corporation

March 01, 2005 08:30 ET

PGP Corporation Announces Record Orders in 2004 and Continues Encryption Leadership in Fortune 100


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PGP CORPORATION

MARCH 1, 2005 - 08:30 ET

PGP Corporation Announces Record Orders in 2004 and
Continues Encryption Leadership in Fortune 100

PALO ALTO, Calif.--(CCNMatthews - Mar 1, 2005) -

Enterprise Adoption, Industry Recognition, Technology Partnerships,
Channel Expansion, and Product Innovations Highlight 2004 and Early 2005

PGP Corporation, a global leader in enterprise encryption solutions,
today announced record orders for its award-winning encryption solutions
in calendar year 2004, further solidifying its position as the
encryption market leader.

"2004 was the most successful fiscal year in the 10-year history of
commercial PGP products," said Alex Doll, PGP Corporation's CFO and vice
president of business development. "In addition, we have made the proper
long-term investments in 2004 to position ourselves for continued growth
in 2005 and beyond. In 2004, we doubled our headcount, accelerated our
infrastructure and operations investments, expanded the size of our
California headquarters, opened a new facility in Utah, grew our
European infrastructure, and significantly increased our engineering
resources and expertise -- all while producing a positive cash flow for
the year."

"Analysts, the media, and our customers have all voted for PGP
Corporation," said Phillip Dunkelberger, president and CEO. "Throughout
2004 and early 2005, our company was repeatedly recognized as an
innovator by major industry associations and publications. Most
important, customers recognized the value of our solutions and the need
for pervasive encryption by increasing the size and type of PGP
deployments. We continued to enhance our encryption suite through new
enterprise technology partnerships with leaders in the messaging
gateway, content filtering, and instant messaging security market
segments. Our FIPS 140-2 validation and newly issued patents further
demonstrated our technology expertise. We also expanded our channel
organization as well as our global presence, giving us the broadest
reach of any company in our sector."

Enterprise Adoption

The fourth quarter of 2004 was the best quarter in PGP Corporation's
history. In 2004, major accounts was the fastest-growing segment of PGP
business, with enterprise customers representing nearly half of all
orders. More than 90% of the Fortune® 100 and 74% of the Forbes®
International 100 use PGP products. Sales were led by PGP® Universal,
the automatic, network-based encryption solution designed specifically
for enterprise markets. The company believes much of its success in 2005
will come from continued acceptance of encryption solutions by large
enterprises and their business partners and customers. Business partners
increasingly require companies to standardize on PGP solutions to ensure
interoperability -- without the need to purchase additional,
non-proprietary solutions -- and to meet customer demands to secure
social security numbers, financial information, health records, and
other personal information. Business partners also want to do business
with a global company. PGP Corporation currently has customers in more
than 90 countries that benefit from its established global sales teams,
reseller network, and support infrastructure.

Regulatory requirements for securing confidential and personal
information in transit via email, across the Internet, and in storage
continue to drive the need for encryption throughout the extended
organization. "Enterprises are turning to us for help in addressing
their compliance issues as well as a variety of supply-chain and
customer requirements," added Mr. Dunkelberger. "They have discovered
that VPNs, hosted systems, and even SSL/SSH are not secure enough to
meet their needs. Instead, they want to purchase solutions from a
company with a history of securing mission-critical data for global
enterprises."

PGP Corporation's ongoing dialog with customers has allowed the company
to develop the broadest integrated encryption suite in the industry. The
PGP encryption product suite includes network (PGP Universal), desktop
(PGP® Desktop), FTP/batch transfer (PGP® Command Line), and SDK
solutions. With more than a decade of experience solving real-world
security problems, PGP Corporation has both an enviable track record and
a growing list of global enterprise users.

Industry Recognition

PGP Universal continued to garner broad industry recognition. In
addition to being named Best Encryption Solution by SC Magazine, the
innovative encryption solution was a finalist in both the Information
Security Product and Product of the Year categories of Europe's
influential Information Management Awards. PGP Universal was also named
a Best Open Source Product or Service 2005 Codie Awards finalist by the
Software & Information Industry Association (SIIA).

In addition, PGP Corporation joined Computer Associates, McAfee, Qualys,
RSA Security, Symantec, and Trend Micro as a finalist in the coveted
Best Security Company category of the SC Magazine Awards. PGP
Corporation was also selected for inclusion in the AlwaysOn (AO) Top 100
Private Companies List for the second consecutive year.

Technology Partnerships

PGP Corporation continued to expand its Alliance Program during the year
with new technology partners Clearswift Ltd., IMlogic Inc., IronPort
Systems Inc., MailFrontier Inc., Mirapoint Inc., Proofpoint Inc.,
Research in Motion Ltd., Sendmail Inc., and Vontu Inc. PGP Corporation's
enterprise-ready encryption solution, PGP Universal, features two-way,
policy-based security that provides a significant competitive advantage
to its partners. "There's great value in partnering with another
best-in-class provider to create a joint solution that meets a broader
range of messaging security needs," said Anne Bonaparte, president and
CEO of MailFrontier.

According to the META Group, merging encryption and digital signature
technology with gateway email hygiene deployments increases email
security without placing further burdens on users, while minimizing IT
involvement. "With PGP Universal, we now provide enterprise customers a
complete solution that combines encryption with our industry-leading MTA
platform, policy enforcement, and preventive and reactive security
measures, including sender reputation, virus outbreaks, spam blocking
and virus detection," confirmed Tom Gillis, senior vice president
worldwide marketing at IronPort™ Systems.

In 2004, PGP Corporation formed an alliance with Research in Motion
(RIM) that will expand existing compatibility between PGP Universal and
BlackBerry Enterprise Server™. The companies are working together to
provide seamless integration for customers deploying both
enterprise-wide PGP Universal email security and the BlackBerry®
wireless platform. "The alliance with RIM reflects our commitment to
support all protocols, email standards, and platforms required to
achieve universal enterprise email security and policy compliance," said
PGP President and CEO Phillip Dunkelberger.

Technology Leadership & Innovation

PGP Corporation continues to set the standard for technology leadership
in security. In 2004, the PGP Software Developer Kit (SDK) received
Federal Information Processing Standards (FIPS) 140-2 Level 1 validation
by the National Institute of Standards and Technology (NIST). PGP
Corporation's email encryption technology supports both of the two
email-related encryption standards recommended by NIST under its
"Guidelines on Electronic Mail Security."

"The return of PGP Corporation and PGP products has invigorated the
encryption market," said Richard Clarke, former National Coordinator for
Security and Counterterrorism and Special Advisor to the President for
Cyber Security, and currently Chairman of Good Harbor Consulting. "Not
only has the company validated the widespread need for encryption in an
increasingly insecure world, but its success confirms the value of its
solutions."

All PGP products are architected to allow for rapid and non-disruptive
migration of all encryption, hash, compression, and signature
algorithms. When researchers recently revealed that a flaw in a hash
algorithm that supports the digital signatures used in popular SSL
browser security and encryption could enable a theoretical attack, PGP
Corporation was already in the process of migrating to stronger
algorithms and a broader range of authentication options. These new
capabilities will be delivered in the upcoming releases of PGP Desktop
and PGP Universal.

PGP Corporation's technology innovation has also been recognized by two
additional technology patents. The first patent (patent number
6,662,299), granted in June 2004, addresses a longstanding issue in
public key encryption: how to handle lost passphrases. The second patent
(patent number 6,851,049), granted in February 2005, covers various
methods to increase message anonymity. PGP Corporation currently has
more than a dozen issued and pending patents.

PGP Corporation is committed to standards-based, nonproprietary
technologies, ensuring wide compatibility among deployments. Although a
number of other email security vendors have promised support for PGP
encryption as well as X.509 + S/MIME in future releases, all existing
PGP products already employ these open standards for public key formats
as well as OpenPGP (RFC 2440).

PGP Corporation continues to lead the industry by developing innovative
products. PGP Universal was designed from the outset to provide easy
implementation, integration, and interoperation with existing security
solutions, mail systems, and network infrastructures. Features such as
auto-enrollment of users and secure delivery for recipients without an
encryption solution continue to set the benchmark for email security.
Its unique proxy architecture provides security without plug-ins,
thereby minimizing user training and software maintenance costs, and
also delivers an approach for extending that protection beyond email.

Channel Expansion

PGP Corporation's two-year-old Channel Program now includes 150 partners
from 37 countries. The company supports its premier resellers with a
wide range of training, sales tools, technical expertise, and
cross-selling opportunities. "We're very particular about the companies
with which we partner," said John Freres, president and CEO of Meridian
IT Solutions. "We're continually approached by technology vendors
wanting to do business together, but after 6-12 months go by, we often
have nothing to show for the partnership."

"In comparison, PGP Corporation focuses on finding 'star' partners and
then invests the resources needed to make them successful," continued
Freres. "Together, we've been able to generate hundreds of thousands of
dollars in opportunities within our existing accounts as well as break
into new accounts in industries ranging from banking and finance to
education."

According to Freres, information security and regulatory compliance are
foremost in the minds of the business community today. "Our relationship
with PGP Corporation enables us to offer strong information security
solutions that help customers leverage technology for greater compliance
and at the same time enhances our business. Plus, because of its
products' architectural flexibility and the number of premier technology
companies with which PGP Corporation partners, PGP encryption solutions
fit easily into most environments."

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. PGP
Corporation 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 Corporation at www.pgp.com or 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 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 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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Jump Start Communications, LLC
    Lori Curtis, 970-887-0044
    email: lori at jumpstartcom dot com