Press Release: PGP Corporation Secures $27.3 Million in Series C Funding

Round Includes New Investors Intel Capital and The D. E. Shaw Group

Palo Alto, CA/20 June, 2007 - PGP Corporation, a global leader in enterprise data protection, today announced it has closed $27.3 million in Series C funding. The round adds new investors Intel Capital, the venture capital arm of Intel Corporation, and the D. E. Shaw group, a global investment and technology development firm with approximately $30 billion in aggregate investment capital. The round also includes participation from existing investors DCM (formerly known as DCM-Doll Capital Management) and Venrock.

PGP Corporation will use the new financing to accelerate organic and inorganic technology development and further fund its channel expansion. The company's vision is to extend key management functionality in the PGP® Encryption Platform to transparently manage third-party devices and software from PGP, ISVs, and customers' in-house applications. Unified key management, already proven with third-party developers such as Research In Motion, is crucial to Enterprise Data Protection, a new approach to data security that enables enterprises to protect data wherever it goes. Extensible key management also provides lower cost of ownership and lower deployment costs because devices, applications, and data can be protected with a single set of policies.

"Intel Capital and the D. E. Shaw group have an exemplary track record, so we're pleased to join their portfolios. We also appreciate the strong continued support from our existing investors because their interest validates the exciting opportunity ahead," said Phillip Dunkelberger, president and CEO of PGP Corporation. "Simply put, unified key management is the next big thing in security and removes perhaps the final perceived barrier to enterprise encryption adoption. Our approach to delivering this scalable, manageable vision is a journey, not a sprint, but this funding clearly accelerates development."

"Proliferation of smarter devices combined with next-generation wireless networks leads to more information being transmitted to the edge of the network. PGP Corporation's platform approach plus its whole disk encryption and key management differentiators provide value to enterprises with a mobile workforce," said Sriram Viswanathan, vice president, Intel Capital and general manager of Wimax Program Office, Intel Corporation. "We share PGP Corporation's vision of offering customers additional security on mobile devices, and we're excited to be working with them on this initiative."

André Turenne, a senior vice president of D. E. Shaw & Co., L.P. and an executive of the D.E. Shaw group's venture capital unit, joins PGP Corporation's Board of Directors. Mr. Turenne has more than 25 years of operating, technical, and venture investment experience in the technology sector. Prior to joining the D. E. Shaw group in 2006, Mr. Turenne was a managing director of NeoCarta Ventures, Inc., a leading venture capital investment firm. Before that, he served as senior manager of strategic investments at Intel Capital. Mr. Turenne commented, "Software to protect enterprise data is an area of focus, and we think PGP Corporation is poised to dominate. With an experienced management team, innovative products, top brands as customers, and a mature channel, we believe the company is well on its way to industry leadership. We look forward to offering our experience and perspective to the PGP team."

The funding comes on the heels of another successful year for PGP Corporation as the company realized record revenue in 2006 and saw balanced customer adoption of the PGP Encryption Platform worldwide. The company continues to achieve enterprise acceptance of the PGP Encryption Platform, with PGP® products now in use at 95 percent of the 2006 Fortune® 100 companies, 87 percent of the German DAX Index companies, and more than 80,000 enterprises, businesses, and governments worldwide. In its first full fiscal year, PGP® Whole Disk Encryption, an award-winning full disk encryption solution for enterprise data protection, contributed approximately 25 percent of the company's bookings. The company has enjoyed a strong start to calendar year 2007, recently launching a new global channel program and refreshing its innovative product portfolio.

About Intel Capital
Intel Capital, Intel's venture capital organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing, and cleantech. Since 1991, Intel Capital has invested more than U.S. $6 billion in approximately 1,000 companies in over 40 countries. In that timeframe, about 157 portfolio companies have gone public on various exchanges around the world and another 187 have been acquired by other companies. In 2006, Intel Capital invested about US$1.07 billion in 163 deals with approximately 60 percent of funds (excluding Clearwire) invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.

About PGP Corporation
PGP Corporation is a global leader in email and data encryption software for enterprise data protection. 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 80,000 enterprises, businesses, and governments worldwide, including 95 percent of the Fortune® 100, 75 percent of the Fortune® Global 100, 87 percent of the German DAX Index, and 51 percent of the U.K. FTSE 100 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.


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.