Press Release: Announcing PGP Corporation

PGP CORPORATION ANNOUNCES VENTURE FUNDING, ASSET PURCHASE, NEW PRODUCTS,
EUROPEAN PARTNER, AND CUSTOMER TRANSITION INFORMATION

Independent company to build next-generation secure communications platform

Palo Alto, CA/19 August, 2002 – PGP Corporation today made a series of announcements regarding its formation, purchase of assets from Network Associates, a new product release, customer transition process, the establishment of a European partner, and launch of its e-commerce web site. PGP Corporation provides secure messaging and data storage products that allow corporations to ensure confidential customer and individual information remains secure.

PGP Corporation Receives $14 Million in Venture Funding
PGP Corporation was created in June 2002 by 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. The new entity raised $14 million of venture funding from DCM-Doll Capital Management and Venrock Associates, two of the most highly respected venture capital firms. The amount raised is sufficient to purchase assets, upgrade existing products, develop new technology, and retain reserves sufficient to reach operating profitability without additional funding.

PGP Corporation Acquires Windows, Macintosh, Wireless Product Lines from Network Associates
PGP Corporation announced the completion on July 26, 2002 of its acquisition of the PGP Desktop and Wireless encryption product lines from Network Associates, Inc. PGP will immediately license and support current versions of PGP products to current, lapsed, and new PGP customers. Assets acquired include:

• PGP Mail, PGP File, PGP Disk, & PGP Admin software products for Windows and Macintosh
• PGP Corporate Desktop for Macintosh
• PGP Keyserver for Windows and Solaris
• PGP Wireless for PalmOS and WinCE/PocketPC
• PGP SDK encryption software development kit

PGP Corporation Announces New PGP 8.0 Products
PGP Corporation announced new PGP products for Windows and for Macintosh to ship in November 2002. PGP 8.0 is a new product and significant upgrade to current PGP offerings, including substantial new features on both platforms.

• PGP 8.0 for Windows: PGP 8.0 for Windows: PGP Mail and PGP Disk. Adds full Windows XP support, server-side Lotus Notes plug-in, support for Novell GroupWise 5.5 and 6.0 clients, as well as supporting all current operating systems and messaging clients, significantly enhanced Unicode internationalization support, and PGP Admin 8.0 automatic configuration of PGP Disk.
• PGP 8.0 for Mac OS X: PGP Mail and PGP Disk. This new product brings full Mac OS X support to the PGP product line. An all-new version of PGP Disk allows compatibility with PGP disks created on Windows, AES algorithm support, and compatibility with older Mac OS 9 PGP disks. PGP Mail for Mac OS X directly integrates with Apple's mail application as well as providing support for Microsoft's Entourage.

PGP Corporation Announces Customer Transition Information
PGP Corporation announced the immediate transfer of all worldwide customer software license agreements from Network Associates to PGP Corporation. Detailed customer transition information is immediately available at www.pgp.com/products/transition.html. Current customers will also receive transition information by email from PGP Corporation within the next week.

Promotional Pricing Program: PGP Corporation will immediately accept orders from customers who need to renew lapsed software licenses, purchase additional seats, and upgrade freeware to standard versions for commercial use. New and current customers can take advantage of the special promotional pricing offer through October 31, 2002. Contact PGP Corporation at contact or toll-free at 866 747 5483 (866 PGP LIVE) for more information.

Support Transition Program: PGP Corporation announced the immediate transfer of customer maintenance and support contracts from Network Associates to PGP Corporation. To ensure full and uninterrupted customer support, Network Associates will continue to support PGP products through a transition period lasting until October 26, 2002, at which time PGP Corporation will assume all support responsibilities. For the next three months customers will continue to receive support through their existing procedures. PGP Corporation is also offering new maintenance and support agreements; information on PGP programs and transition is available at support.

International Customers: PGP Corporation announced a partner for Europe, Africa, and the Middle East for sales and support, Intellect, a leading value-added reseller and integrator based in the U.K. Intellect will provide sales and technical support, localization, and be a master distributor for PGP Corporation. PGP customers in Europe, Africa, or the Middle East can contact PGP Corporation at www.pgp.com or Intellect at www.intellect.co.uk.

PGP Corporation Announces E-Commerce Capabilities
PGP Corporation announced the launch of its web site, including commerce capabilities, at www.pgp.com. This web site contains complete product, pricing, renewal, and customer transition information, as well as the ability to order, renew, increase, and bring into compliance software license, maintenance, and support agreements. Information on the PGP Corporation management team, venture capital investors, product direction, and corporate philosophy is also available.

PGP Corporation Discusses Operating Principles
PGP Corporation has based its operations on the principles of continuity, relationship, and innovation.

• Continuity: a commitment to open source and non-commercial freeware, the highest levels of encryption, and the continued upgrade of current PGP products, including a new product shipment planned for Q4 this year.
• Relationship: a commitment to forging lasting contacts with customers, to actively soliciting input on all aspects of the business, company direction and product evolution.
• Innovation: a commitment to engineering a new approach to secure messaging and data storage, in time developing an architecture to redefine enterprise security, simplifying user and IT deployment and making practical the universal protection of confidential information.

"We are excited about solving the real corporate, customer, and individual need to protect confidential information, everywhere it resides," said Phil Dunkelberger, President and CEO of PGP Corporation. "We raised $14 million in this challenging economic climate from two top venture capital firms because they believe in the marketplace and in our ability to provide innovative solutions for our present and future customers. We are dedicated to making PGP products so simple they will be used everywhere."

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 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 cipher 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 them at 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 website 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.