Media Release: New Ponemon Study Details Trends in Enterprise Encryption Adoption

PGP Corporation–Sponsored U.S. Study Shows Emergence of Strategic Planning and Platform Approach to Encryption; Two-Thirds Deploy Encryption for Laptop Protection

Palo Alto, CA/06 February, 2007 – At the RSA® Conference 2007, PGP Corporation, a global leader in enterprise data security and encryption solutions, today announced results from a new study by The Ponemon Institute on enterprise needs, motivations, uses, and strategies for protecting data with encryption. The key findings of the 2007 Annual Study: U.S. Enterprise Encryption Trends demonstrate a shift toward the strategic planning and use of encryption technology across enterprises.

"PGP Corporation is pleased to work with Dr. Ponemon on his latest research," said Phillip Dunkelberger, president and CEO of PGP Corporation. "We started this project with a simple question: Are the most effective, most productive enterprises seeking a platform approach to encryption? We're delighted to find a positive response because it validates our building the PGP Encryption Platform from the ground up to satisfy the demanding requirements of enterprises worldwide."

Respondents overwhelmingly see an encryption platform, which enables an organization to centrally manage and deploy multiple encryption applications with consistent policy enforcement, as the best, most cost-effective, and efficient approach to defending their data. The study was first conducted in the United States. The Ponemon Institute is conducting similar research in the United Kingdom and Germany, with results to be issued later this year. For more information or to receive a copy of the study, visit http://www.pgp.com/downloads/research_reports/index.html

Another study released by The Ponemon Institute in October 2006 calculated the average cost of a data breach at $182 per compromised record, or an average total of $4.8 million per breach for companies affected by a data breach incident, motivating organizations to initiate and expand their use of encryption. The new 2007 Annual Study: U.S. Enterprise Encryption Trends identifies key areas of focus in encryption use, planning strategies, and deployment methodologies. Nearly 800 IT and business personnel participated in the survey; approximately 40 percent were at the director or vice president level. In conducting the survey, Dr. Larry Ponemon, chairman and founder of The Ponemon Institute, developed an index known as the Security Effectiveness Score (SES) that enabled respondents to self-evaluate their IT organization's performance and preparedness across a set of 24 attributes. The SES was essential to identifying leading IT organizations and recognizing trends throughout the survey

The survey consisted of a series of questions, resulting in four key findings:

Strategic planning for encryption emerges – Responding to increased demands for data security, 66 percent of respondents have some type of encryption strategy and 16 percent have "enterprise-wide" strategies.

Organizations are seeking a platform approach – As described in the survey, a platform enables organizations to centrally manage and deploy multiple encryption applications with consistent policy enforcement, an approach that resonated soundly: 61 percent of respondents viewed an encryption platform as "important" or "very important."

Platform recognized as reducing costs and improving efficiencies – Respondents view an encryption platform approach as a driver to reduce costs and increase productivity. Key benefits of the platform approach:

• Elimination of redundant administrative tasks (66 percent of respondents)
• Reduction of operational costs (59 percent)
• Flexibility to add other encryption applications as requirements evolve (54 percent)

Encryption increasingly used across multiple applications – Respondents reported beginning to consistently encrypt laptops, file servers, emails, and backup tapes. Laptop encryption is most common, with 18 percent reporting such use "most of the time." The use of laptop encryption is driven by the need to mitigate the consequences of a potential data breach, which was identified as one of the top reasons for deploying encryption (66 percent).

"The Security Effectiveness Score was developed as an objective gauge for organizations seeking to develop and test security strategies in the wake of new regulations and growing challenges to protecting sensitive information," Dr. Ponemon said. "As expected, leading IT organizations with the most effective security programs are those at the forefront of strategic planning and use of encryption. Such organizations are significantly more interested in a platform approach to enterprise encryption."

The Ponemon Institute is completing a similar study for the U.K. and German markets. Preliminary results indicate European businesses are protecting data with encryption to address privacy commitments and regulations, compared to U.S. companies, which are driven primarily by data breach mitigation. PGP Corporation will publish the findings of this study when the Institute has completed its analysis.

About The Ponemon Institute
The Ponemon Institute© is dedicated to advancing responsible information and privacy management practices in business and government. To achieve this objective, the Institute conducts independent research, educates leaders from the private and public sectors and verifies the privacy and data protection practices of organizations in a variety of industries.

About PGP Corporation
PGP Corporation, a global security software company, is the leader in email and data encryption. 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 Germany's DAX index, and 51 percent of the 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 or +1 650 319 9000.

Media & analyst contact for PGP Corporation:
John Tran
GlobalFluency
+1 650 433 4153
jtran@globalfluency.com

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