PRESS RELEASE : July 8, 2003

Voltage Security Delivers Breakthrough in Cryptography; First to Use Identities to Secure Business Communication

New Information Security Software Company Removes Longstanding Hurdles associated with Public Key Infrastructure

Palo Alto, CA., July 8, 2003 --Voltage Security, Inc., a new information security software company, today unveiled a major breakthrough in cryptography called Identity-Based Encryption, or IBE. With IBE, customers, for the first time, can engage in secure anytime, anywhere business communication without complicated setup and enrollment procedures. The company also announced commercial availability of the Voltage Security platform composed of the Voltage SecurePolicy Suite, a managed service called Voltage SecurePolicy Service, a secure email solution called Voltage SecureMail and a secure file solution called Voltage SecureFile.

IBE is a significant technology breakthrough. It raises public key cryptography to a new level for the first time in two decades. Customers can now send business critical communication, online and offline, in a scalable way with low administrative overhead and with a significantly lower cost of ownership than existing solutions such as PKI, said Sathvik Krishnamurthy, president and CEO of Voltage Security. These benefits are offered through the Voltage Security platform which today enables secure email and files, and down the road will enable secure instant messaging, voice over IP, web services, and other applications, continued Krishnamurthy.

When we created our IBE algorithm, we knew we had a solution that greatly simplifies public key management, said Dr. Dan Boneh, co-inventor of the IBE technology, Stanford University professor and co-founder of Voltage Security. By enabling identities, such as email addresses and phone numbers, to be used as public keys, we eliminated the need for certificates, certificate revocation lists and other infrastructure thus dramatically reducing overall system complexity, continued Dr. Boneh.

"Strong authentication and encryption are essential elements of strong security, but have been notoriously difficult to implement due to the cost and complexity of existing solutions," said Jamie Lewis, CEO and research chair of Burton Group. "This is especially true for secure email and file encryption, two of the most pressing security needs customers have. Identity-Based Encryption works to address many of these obstacles by reducing the complexity of bootstrapping and enrollment procedures. Since it leverages well-known identifiers as predicates for key generation, IBE is also consistent with the trend toward stronger identity and identity management mechanisms."

FIRST PILOT CUSTOMERS ANNOUNCED

Voltage Security today also announced its first pilot customers for the Voltage Security platform. Silicon Valley Bank and eHealthInsurance have both been testing the software for several months as part of an ongoing pilot program. The pilot program participants mirror Voltages expected early customers; financial services firms and healthcare organizations will both benefit greatly from an easy-to-administer, easy-to-use secure communication solution.

"We are evaluating the Voltage Security platform in a pilot as part of our continuous efforts to stay abreast of promising new technologies and products. So far, we are impressed with the ease-of-use and ease-of-management of the system as it addresses the need for secure messaging. We are also pleased with the positive feedback we've received concerning our end-users' experience," said Erwin Martinez, Chief Information Officer, Silicon Valley Bank.

Maintaining the privacy and security of our customers personal and health information is our highest company priority, said Bruce Telkamp, vice president and general counsel of eHealthInsurance. And piloting Voltage products is consistent with our objective of deploying the most reliable and state-of-the-art security and encryption products available. To date, we have been very impressed with the security features and ease-of-use of Voltage products.

VOLTAGE SECURITY PLATFORM AVAILABLE TODAY

The Voltage Security platform is composed of several products and services. Today the company announced availability of the following elements:

Voltage SecurePolicy Suite A central enterprise security server used to enforce security policies related to the issuance of IBE keys, user provisioning, and administration of mission critical business communication.

Voltage SecurePolicy Service A managed service for the Voltage SecurePolicy Suite and applications, available today for pilot applications.

Voltage SecureMail A software module used in conjunction with existing email solutions to enable users to transparently send and receive secure email.

Voltage SecureFile A software module to enable users to transparently secure files, directories and documents on portals and intranets.

Key features and benefits of the Voltage Security platform include:

Secure anytime, anywhere communication. Users can encrypt and decrypt communication and information, online and offline, anywhere in the world with transparent roaming.
Self-provisioning. No pre-enrollment of recipients is needed to send secure ad hoc communication, unlike existing solutions.
Ease-of-use. Users can transparently send and receive secure communication without changing their day-to-day behavior.
Ease-of-administration. The Voltage Security platform can be quickly implemented and centrally administered. No complicated archive solutions are required for keys or messages to ensure business continuity.
Low total-cost-of ownership (TCO). By leveraging well-known identities, such as an email address, the Voltage Security platform reduces complex infrastructure thus reducing overall costs.

In the fall of 2003, in order to promote wide-spread adoption of IBE, Voltage will release the Voltage IBE Developer Toolkit which will be available at no charge, and will include APIs and source code to enable developers to quickly and easily build royalty-free client applications based on IBE technology. Licensing for academic and other non-commercial uses will also be available at no charge. Developers interested in learning more are encouraged to go to www.voltage.com for more information.

ABOUT IDENTITY-BASED ENCRYPTION (IBE)

Based on a mathematical breakthrough developed by Dr. Dan Boneh of Stanford University and Dr. Matt Franklin (member of the Voltage Security Advisory Board) of the University of California at Davis, Boneh-Franklin IBE makes it easy to secure all kinds of digital information. With IBE, customers can protect business communication by using identities such as a well-known email, phone number or IP address, instead of the pre-generated, cumbersome public/private key pairs and digital certificates required in existing solutions. Technical details of IBE are provided in the publicly available paper entitled Identity-Based Encryption from the Weil Pairing by Dan Boneh and Matthew Franklin. A link to this paper can be found at www.voltage.com.

VIEWS FROM THE INDUSTRY

"Identity-Based Encryption is an exciting breakthrough in cryptography," said Paul Kocher, president, Cryptography Research, Inc., and member of the Voltage Advisory Board. "With other approaches, user enrollment is an impediment to communicating securely. With IBE, senders no longer have to worry about whether recipients are pre-registered, and messages themselves become the reason why recipients will want to enroll."

"The financial services industry is demanding better ways to securely deliver information over the Internet, commented Scott Loftesness, managing partner at Glenbrook Partners.Consumers want the convenience of email-based bill presentment and statement delivery without sacrificing privacy. Businesses want more cost efficient and convenient solutions than those currently available. Voltage, with its IBE technology, solves this problem with an easy-to-use and deploy solution," continued Loftesness. Loftesness was formerly group executive at Visa International and First Data Corp. and is a member of the Voltage Advisory Board.

About Voltage Security
Voltage Security, Inc. provides the market leading Voltage Enterprise Privacy Management Platform™, a breakthrough foundation for securing all forms of digital business communication flowing into and outside an organization. Based on a revolutionary breakthrough called IBE, or Identity-Based Encryption, the Voltage Enterprise Privacy Management Platform greatly simplifies the use and administration of traditional security systems. Voltage Security markets its own enterprise solutions including the Voltage SecureMail Gateway™, Voltage SecureMail™ and secure mobile messaging solutions for RIMs BlackBerry® and Microsoft Windows Mobile-based Pocket PCs and Smartphones, and partners with other leading companies such as CipherTrust, FrontBridge Technologies (a Microsoft company) and Proofpoint to serve the expanded security needs of the enterprise. Third-party and corporate developers can secure customer applications with the Voltage IBE Toolkit™. Voltage Security customers include leading corporations and governmental agencies from around the globe including XL Global Services, Waterfield Mortgage, QVC Japan and Hitachi.

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Voltage Security, Inc and Voltage SecurePolicy Suite, Voltage SecurePolicy Service, Voltage SecureMail, Voltage SecureFile, and Voltage IBE Developer Toolkit are all either trademarks or registered trademarks of Voltage Security, Inc.