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PHNS Standardizes on Market-Leading PGP Encryption Platform for HIPAA and Sarbanes-Oxley Compliance

Health Care IT Outsourcer Protects Patient Information with Integrated PGP Applications

Palo Alto, CA /04 October, 2006 – PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced that PHNS, a Texas-based information technology and management outsourcing company for health care providers, has implemented the PGP® Encryption Platform. Because it is standards-based, the PGP Encryption Platform fits a broad range of customers needs and integrates easily with existing infrastructures, including the content-filtering, anti-virus, and anti-spam solutions currently deployed at PHNS. In addition to the platform, PHNS is using PGP Universal™ Gateway Email encryption, providing secure, managed email and information-sharing services to its customers, and also relies on PGP® Desktop Professional to secure emails and content shared internally. PGP® technology enables PHNS’s customers to comply with the U.S. Health Insurance Portability and Accountability Act (HIPAA) and U.S. Sarbanes-Oxley requirements for internal controls of confidential and financial data.

PHNS serves a wide range of health care organizations, and impending HIPAA deadlines prompted customer demand for hosted email protection. “Email is essential for our customers to conduct business, and we needed a proven solution that would be transparent to users,” said Brian Perry, director of information security for PHNS. “The demonstrated performance of PGP products, along with analyst recommendations and PGP Corporation’s long-term financial stability, made us confident in selecting PGP solutions.”

As an outsourcer, PHNS is always searching for ways to reduce IT costs for customers. The PGP Encryption Platform has significantly lowered its overall operating costs—savings PHNS passes along to its customers. With the first PGP application they deploy, organizations like PHNS begin to realize the benefits of the PGP Encryption Platform. Additional PGP solutions leverage this common platform, providing lower operational cost and faster implementation compared to point solutions.

PHNS also uses PGP® Command Line to ensure the security of sensitive information shared across heterogeneous systems for departments such as admissions, billing, and clinical trials—even if each department uses a different system.

Other Options Insufficient
PHNS considered alternative security offerings, but decided against proprietary solutions that had not received the same scrutiny, peer review, and utilization across a broad user base as the PGP Encryption Platform. “Nothing matched the maturity and robustness of the PGP offering,” added Perry.

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

About PGP Desktop Professional
PGP Desktop Professional provides comprehensive security for individual desktops. This easy-to-use solution transparently encrypts email, files, virtual volumes, and entire disks from a single desktop application; no end-user action is required.

About PGP Command Line
PGP Command Line enables organizations to automate encryption and signing of sensitive consumer and business information, securing it for local storage, transfer over the Internet, or backup.

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 operational costs, and realize a strong return on investment.

About PHNS
PHNS provides comprehensive healthcaring solutions for hospitals including information technology, health information management (including medical record management and storage, transcription, coding, release of information and electronic medical record services) and receivables management services. Serving more than 400 U.S. hospitals, PHNS creates business-healthy hospitals by improving operations, enhancing technology, providing capital dollars and increasing cash on hand. This allows hospitals to focus on their core competency—patient care. PHNS employs more than 1,300 experienced professionals whose dedication has resulted in over $35 million in cost savings for PHNS' hospital partners. PHNS was founded in 1999 and is headquartered in Dallas, Texas, with employees based across the country. See www.phns.com for additional information.

About PGP Corporation
PGP® solutions are used by more than 30,000 enterprises, businesses, and governments worldwide, including 94 percent of the Fortune® 100 and 76 percent of Germany’s DAX 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 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, 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. 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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Media Contact – U.S.:
Tom Rice
Merritt Group
+1 703 856 2218
rice@merrittgrp.com

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

Media Contact – Japan:
Kyosuke Wakairo
Powered Communications Inc.
+81 3 5211 7899
pgp@powered-
communications.com

Media Contact – U.K.:
Jacqui Depares
Johnson King
+44 (0)20 7401 7968
jacquid@johnsonking.co.uk

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