Media Release: HSBC Selects PGP Universal

HSBC Selects PGP Universal for its Global Email Gateway
Encryption Strategy

Palo Alto, CA/12 July, 2006 - PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced that HSBC, one of the world's largest banks, has chosen PGP Universal™ Series 500 Gateway as part of its core business solution to enhance the level of protection over the corporation's global email communications. The product will provide HSBC with additional assurances over the privacy of confidential information and customer data shared with customers and business partners via email and meet the latest information security regulatory requirements.

Data protection regulations such as the UK Data Protection Act, the European Union Data Privacy Directive, and California Senate Bill 1386 require that organizations implement internal controls to prevent unauthorized access to confidential customer and company data. "As a global enterprise, HSBC has to comply with many different information security regulations," said Stephanie Daman, Head of Information Assurance at HSBC. "We chose PGP Universal because it is trusted globally by business customers and can be adapted to meet the various regulatory requirements."

About PGP Universal
PGP Universal automatically secures confidential email with PGP encryption and digital signatures at the gateway, based on centrally defined policy. The encryption is completely transparent to the user, and email is automatically encrypted to match recipients' encryption capabilities.

About the PGP® Encryption Platform
Based on a unified key management and policy infrastructure, the PGP Encryption Platform offers the broadest set of integrated applications for enterprise data security. The platform enables organizations to meet current needs and expand as security requirements evolve for email, laptops, desktops, instant messaging, PDAs, FTP, bulk data transfers, backups, and shared files on network storage. By implementing the PGP Encryption Platform, organizations can reduce security infrastructure complexity, lower maintenance costs, and realize a strong return on investment.

About HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through some 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$1,502 billion at 31 December 2005, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.

Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

About PGP Corporation
PGP solutions are used by more than 30,000 enterprises, businesses, and governments worldwide, including 84 percent of the Fortune® 100 and 66 percent of the Fortune® Global 100. 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.

Media & analyst contact for PGP Corporation:
John Tran
Neale-May & Partners
+1 650 328 5555 ext. 277
jtran@nealemay.com

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.