Media Release: PGP Japan K.K.

PGP Corporation Announces the Formation of
PGP Japan K.K.

Expanded Infrastructure, Localized Products, Broadened Channel, and Technology Partnerships Highlight Japanese Presence

Palo Alto, CA/26 January, 2006- PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced the formation of PGP Japan K.K. The wholly owned subsidiary formalizes the company's long-standing commitment to PGP Japanese-language customers exemplified by the localized versions of PGP products released in December 2005. PGP Corporation also announced the opening of the PGP Japan K.K. office in Tokyo, a new Japanese distributor, and strengthened partnerships with established technology leaders Clearswift Ltd. and Mirapoint Inc.

"By forming PGP Japan K.K., we are fulfilling our vision of supporting our global customer base wherever they are located," said Phillip Dunkelberger, president and CEO of PGP Corporation. "In the new borderless enterprise, data needs to be protected in all locations and in all languages. The new PGP Japan K.K. will create a greater global presence for PGP Corporation, facilitate the simultaneous delivery of new encryption solutions in major business languages, and provide significant advantages to multi-national organizations."

Japanese presence. The new Japanese subsidiary will be managed by Masahiro Asai, director of PGP Japan K.K., with the support of a Japanese technical staff. Mr. Asai was most recently Vice President of Sales for LANDesk Software K.K. Previously, he spent more than a dozen years with Intel K.K., lastly as Sales Director of its Communication Product Group.

"Japanese customers demand high-quality security solutions that meet industry best practices for eliminating data risks," said Masahiro Asai. "PGP solutions are already well-respected in Japan. The new localized PGP® Desktop and PGP Universal™ products will add to the company's reputation as a leader in transparent, easy-to-use, scalable encryption solutions."

Localized products. The latest release of the award-winning PGP Desktop, PGP Universal, and PGP® Command Line products respond to Japanese customers' requirements to help ensure pervasive data protection, regulatory compliance, and interoperability with a wide range of network architectures, applications, and messaging standards. Featuring PGP Universal for centralized management and recovery, the PGP enterprise security suite is the most comprehensive in the industry.

Broadened channel. To provide customers with greater options, PGP Corporation has formed a new partnership with Macnica Networks Corp., complementing its existing distribution relationship with Nippon System Development Co., Ltd. (NSD).

"PGP Corporation has shown it is dedicated to building strategic relationships that help meet Japanese customers' needs," said Kiyoshi Nakashima, president of Macnica Networks Corp. "We offer the in-country expertise to ensure companies can obtain proven solutions that protect their confidential information and help ensure regulatory compliance from the leader in enterprise data security."

Technology partnerships. To provide solutions for enterprises needing both encryption and best-of-breed email management, PGP Corporation has partnerships with major email gateway leaders such as Clearswift and Mirapoint. The resulting integrated solutions help enterprise customers rapidly deploy security technologies that are transparent to the end user, feature centrally managed security policy, and meet their performance, security, and deployment requirements.

"Corporations doing business in Japan face the growing need to mitigate the risks caused by careless handling and management of electronic information," said Richard Yamamoto, managing director, Clearswift Japan K.K. "In response, we created an enterprise-scale solution for email compliance that is easy to deploy and maintain by combining our MIMEsweeper™ content security solution with PGP Universal for automatic, network-based, policy-defined encryption. The establishment of PGP Japan K.K. will strengthen our existing relationship and provide new integrated security solutions for the Japanese market."

Wide-ranging threats to corporate data and the challenge of regulatory compliance place increasing demands on IT resources. Companies are looking for solutions that work well together to provide security across the messaging infrastructure.

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 Japan K.K. at http://www.pgp.co.jp/ or +81 03 4360 8308.

Media & analyst contacts for PGP Corporation:
Kyosuke Wakairo (Japan)
Powered Communications Inc.
+81 3 5211 7899
pgp@powered-communications.com

John Tran (U.S.)
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.

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.