Press Release: PGP Corporation Launches New PGP® Managed Service Provider Network

Initial Participants ANI Direct, Aurora Enterprises and Gradian Systems to Offer SaaS-Based PGP® Encryption to Global Customers

Menlo Park, CA/20 October 2008 – PGP Corporation, a global leader in enterprise data protection, today announced a significant expansion of its channel strategy with the launch of the PGP® Managed Service Provider Network (MSPN). PGP Corporation is broadening access of its encryption solutions to mid-market and small businesses through a new worldwide network of managed service providers and existing channel partners that will initially offer the award winning PGP® Whole Disk Encryption as a Software as a Service (SaaS) subscription offering. PGP Whole Disk Encryption was recently declared the “Best Buy” winner having received five stars in all categories — features, performance, ease-of-use, documentation, support and value for the money — in this year’s SC Magazine Encryption Group Review published on October 4, 2008.

Today’s global business environment is comprised of enterprises of all sizes that are all partnering together on critical initiatives and exchanging sensitive competitive and market data. Businesses large and small alike must ensure that the data they exchange is secure and encrypted at all times, in addition to making sure they comply with industry and regulatory compliance mandates. Unlike large corporations, small and mid-market companies do not always have the budget, IT resources or infrastructure in place to support their data with enterprise-class security strategies and solutions.

“Market data shows that customers, such as small businesses, branch offices and departmental groups, are becoming more comfortable consuming security technology as a service offering as it greatly simplifies set-up and ongoing infrastructure maintenance,” said Phillip Dunkelberger, president and CEO of PGP Corporation. “End-user customers and channel partners of the PGP Managed Service Provider Network can now more easily get started and quickly reduce IT expenditures by using PGP Whole Disk Encryption in a SaaS environment.”

PGP® Whole Disk Encryption provides comprehensive, automatic full disk encryption, enabling quick and cost-effective protection for data on PCs, laptops, and removable media. The encrypted data is transparently safeguarded from unauthorized access, providing strong security for intellectual property, customer and partner data, and corporate brand equity, specifically when mobile devices are lost or stolen. Through the PGP Managed Service Provider Network SaaS delivery model, mid-market and small customers now have the advantage of having access to the same commercial-grade, enterprise-class encryption security as large organizations without requiring the upfront infrastructure and hardware investments typically required for implementing encryption technology solutions.

By building out its partner ecosystem with the PGP Managed Service Provider Network, PGP Corporation is expanding its enterprise data protection footprint to new vertical and geographic markets, bringing enterprise-class encryption and manageability to a new category of customers. New and existing PGP® channel partners and managed service providers can increase revenue streams by offering PGP Whole Disk Encryption as a managed service with a “pay-as-you-go” business model. Initial marquee partners that have joined the PGP Managed Service Provider Network include ANI Direct and Aurora Enterprises in the United States, and Gradian Systems in the United Kingdom, all of which are already delivering PGP Whole Disk Encryption as a SaaS hosted delivery service to their customers with great success.

"The obscene number of data breaches resulting from lost or stolen laptops makes it absolutely critical that businesses of all sizes and verticals strengthen their data protection capabilities with whole disk encryption. An ancillary benefit is that whole disk encryption can also aid in complying with data protection mandates," said Charles Kolodgy, research director of Security Products at IDC. "With the current economic climate and tighter IT budget constraints, PGP Corporation's strategy of offering whole disk encryption as a hosted service through their Managed Service Provider Network provides customers with choice, flexibility and cost savings to fulfill their business needs and protect their key assets.”

Aurora, a leading IT company specializing in data security and compliance solutions for business critical applications, has been a long-standing partner and reseller of the PGP® Encryption Platform-enabled applications. “We work with a wide range of customers across various highly regulated industries that all need encryption as part of their overall defense in depth strategy,” said Philip J. de Souza, president and CEO of Aurora. “At Aurora, we look to our partners to help us be a catalyst for change and drive innovation with our customers. By being one of the first providers to deliver PGP Whole Disk Encryption in a SaaS model, we can now offer our customers affordable access to data encryption with all the efficiencies and cost savings associated with a SaaS offering.”

“At ANI Direct, we believe that customers should have a range of choices when dealing with security issues and that one security delivery model does not fit the needs of every organization,” said Chris Jackson, director of Services at ANI Direct, a nationwide, security-focused reseller and service provider. “Automated data encryption software services and whole disk encryption are central to any data protection strategy. We are pleased to be partnering with PGP Corporation to take its encryption technology to the next level and offering it as a SaaS delivered, managed service.”

“Data breaches do not discriminate by the size of the company, rather they are becoming pervasive within the enterprise, mid-market and small businesses alike,” said Damian Acklam, managing director at Gradian Systems in the U.K. “By being able to offer PGP Whole Disk Encryption as a managed service, we are able to bring a new level of security services and support to all of our customers, regardless of their size. While we focus on making sure their data is secure and meets all the necessary regulatory requirements, customers can remain focused on their business knowing that their data is protected at all times.”

PGP Managed Service Provider Network Requirements
Entry into the PGP Managed Service Provider Network is open to existing PGP® Gold and Silver partners with strong managed service provider market presence and knowledge that have demonstrated exceptional quality of service delivery to their customers. For more information on the PGP Managed Service Provider Network, please contact msppartners@pgp.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, smartphones, network storage, file transfers, automated processes, 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. Contact PGP Corporation at www.pgp.com.

Media & analyst contact for PGP Corporation:
North America
Christina Grenier
PGP Corporation
+1 650 543 3697
cgrenier@pgp.com

Tom Rice
Merritt Group
+1 703 856 2218
rice@merrittgrp.com

United Kingdom
Jacqui Depares / Richard Scarlett
Johnson King
+44 (0) 20 7401 7968
pgpteam@johnsonking.co.uk

Germany
Ingrid Daschner
Johnson King
+49 (0) 89 8940 8511
ingridd@johnsonking.de

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.

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