Press Release: PGP Announces Venture Funding

PGP CORPORATION RECEIVES $14 MILLION INITIAL FUNDING FROM
DCM-DOLL CAPITAL MANAGEMENT AND VENROCK ASSOCIATES

Palo Alto, CA/19 August, 2002 – PGP Corporation announced today that it has received $14 million in venture funding from DCM-Doll Capital Management and Venrock Associates, two leading venture capital firms. The funds will be used to establish and operate PGP Corporation as a new, independent company providing secure messaging and data storage products to corporations and individuals.

As stated in a separate press release today, PGP Corporation has purchased the technology assets from Network Associates, additionally announcing that the company will upgrade existing product lines, develop new technology, and retain reserves sufficient to reach operating profitability. PGP Corporation was created with a management team comprised of technology industry veterans from Vantive, PeopleSoft, Symantec, and Counterpane Internet Security, Inc., and former PGP executives, developers, and patent holders. PGP secure-messaging and data-storage products (PGP Mail, PGP File, PGP Disk, PGP Wireless, PGP Admin and PGP Keyserver), in use by thousands of corporate/government users and millions of individual users worldwide, allow corporations to ensure confidential customer and corporate information remains secure.

"PGP products are well known and highly respected by security experts in leading corporations around the world," said Phil Dunkelberger, President and CEO of PGP Corporation. "This level of funding is a tremendous vote of confidence from two of the premier venture capital firms that we can, through technical innovation, expand PGP into a product that is a corporate requirement for every desktop and wireless device."

"The feedback we have received from corporate and government customers has provided us with the insights that a comprehensive next generation security product was needed to meet the growing demand for an easy-to-use encryption product that can be used by many people," said Rob Theis, DCM General Partner. "We began working on this project when Phil Dunkelberger joined our Entrepreneur-in-Residence program and are delighted that it has resulted in the creation of a company with the long range objective of offering a complete family of well-integrated products, providing the foundation for the next generation in security encryption with proven products and an established brand."

"PGP Corporation has outstanding market potential," said Terry Garnett, General Partner of Venrock Associates. "The entire security category is growing rapidly and customers have a great need for products that protect confidential information. Keeping data secure is a universal enterprise requirement."

About PGP Corporation
PGP Corporation, the recognized worldwide leader in secure messaging and data storage, builds products that allow corporations to ensure confidential customer and individual information remains secure. PGP Corporation combines a management team comprised of technology industry veterans and former PGP executives, developers, and patent holders with $14M of venture funding from DCM - Doll Capital Management and Venrock Associates, two highly respected venture capital firms.

Over the last ten years, PGP® technology has developed a global reputation for enabling open, trusted, and highly reliable security products. PGP technology has thousands of corporate/government users and millions of individual users worldwide, including many of the world's largest and most security sensitive enterprises, government agencies, individuals, and cryptography experts. Contact PGP Corporation at www.pgp.com or toll free at 866 747 5483 (866 PGP LIVE).

About DCM-Doll Capital Management
DCM is a top-performing venture capital firm supporting entrepreneurs building early-stage technology companies. Since 1996, DCM's six partners, armed with over a century of operational and investing experience, have funded leading technology companies including About (Primedia), Foundry Networks (Nasdaq:FDRY), Internap (Nasdaq:INAP), IPivot (Intel), Recourse Technologies, Remedy (Peregrine Systems), UUNet (Worldcom) and Vernier Networks. DCM offers hands-on operational guidance and access to an extensive network of resources, including close relationships with many of the Pacific Rim's leading companies and investors. Visit the company www.dcmvc.com.

About Venrock Associates
Venrock Associates was founded as the venture capital arm of the Rockefeller Family and continues a tradition of funding entrepreneurs that now spans over six decades. Laurance S. Rockefeller pioneered early stage venture financing in the 1930s. As one of most experienced venture firms in the United States, Venrock maintains a tradition of collaboration with talented entrepreneurs to establish successful, enduring companies. During its history Venrock has made over 300 investments in portfolio companies that have achieved an aggregate market capitalization of $1.2 trillion, combined annual revenues of $150 billion, and employees totaling over 773,000. The firm is currently investing a capital pool of approximately $800 million that includes Venrock Associates III, L.P., a fund that closed in July 2000. For more information, please visit the company at www.venrock.com.

PGP and the PGP logo are trademarks of PGP Corporation. All other names or products are the property of their respective owners.