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PRESS RELEASE : May 17, 2005

Voltage Security™ Raises $15M in Series C Funding

JAFCO Ventures Leads Expansion Round With Participation from Siemens Venture Capital

PALO ALTO, CAMay 17, 2005 —Voltage Security, Inc., a global leader in enterprise privacy management for digital business communication, today announced the completion of a $15 million Series C round of funding. With proceeds from the round, Voltage will continue building a global distribution network and continue expanding product offerings. JAFCO Ventures (www.jafco.com) of Palo Alto, CA., is the lead investor in the round, with participation from the Siemens Venture Capital arm of Siemens AG. Existing investors, Hummer Winblad Venture Partners, Morgenthaler Ventures and Menlo Ventures also participated for a significant portion of the financing. There are no board changes resulting from the financing.

“JAFCO is impressed with how far Voltage has come so quickly.  Voltage has been averaging 60% quarter-to-quarter growth, signing 25 new customers in the first quarter of 2005.  We are excited about Voltage’s momentum and believe we can help build their vision for delivering a platform for enterprise privacy management.  Securing all forms of digital business communication utilizing IBE represents a significant breakthrough in cryptography,” said Tom Mawhinney, General Partner, JAFCO Ventures.  “Our investments are driven by companies that are solving large customer issues.  Our discussions with Voltage’s customers across industries substantiated that this breakthrough results in a tangible ROI.”

"Siemens has been working with Voltage on a number of strategic initiatives, including secure mobile messaging for enterprises and strategies for increasing revenue per user for mobile networking operators.  As we have gotten to know Voltage, and how they solve critical customer needs, we have come to see them as a significant investment opportunity ",said Jackie Hoffmann, head of communications fund, Siemens Venture Capital. "Voltage's innovative IBE technology extends the security of information across corporate boundaries into the realm of casually connected and always-on mobile environments. We are excited to help Voltage realize the potential of its solutions in these markets."

“As new investors, both JAFCO and Siemens bring important strengths to Voltage. JAFCO brings deep contacts and market insights to complement our existing distribution relationship with Mitsui Bussan in Japan. Siemens is a strong partner of Voltage in building our global secure mobile communication business. Their investment strengthens their commitment to our growth,” said Sathvik Krishnamurthy, president and CEO of Voltage. “Our customer momentum is being driven by enterprise privacy management compliance requirements and the broad need to secure digital assets. Voltage IBE makes this vision a reality, providing the easiest to deploy, most scalable and most usable solutions available.”

Voltage board members include Ann Winblad, co-founding partner of Hummer Winblad Venture Partners; Ken Gullicksen, partner, Morgenthaler Ventures; Mark Siegel, managing director, Menlo Ventures; Srivats Sampath, president and CEO of Mercora; Dr. Dan Boneh, professor of computer science at Stanford University and co-founder of Voltage Security, Inc.; and Sathvik Krishnamurthy, president and CEO of Voltage Security, Inc.

Voltage Builds Momentum

Since its launch in 2003, Voltage has gained significant market traction with its secure messaging products.

  • Averaged 60% quarter –to-quarter growth in business.
  • Signed 25 new customers in Q1 of 2005.
  • Expanded its reseller base around the world, adding 12 new Voltage Select channel partners in Q1 of 2005 in the United Kingdom, Canada, Australia, Italy, and South Africa.
  • Released Voltage policy-based secure messaging solution throughout Europe on Siemens hardware offered by Siemens Business Services via a new program called “2Send Secure”. Siemens Business Services also provides post-sales support for Voltage across Europe.

Government Momentum

In addition to its growing enterprise business, Voltage continues to expand its activities in the government sector.

  • Awarded “top performer” status in the Joint Warrior Interoperability Demonstration (JWID) 2004.
  • Nominated as one of only nine solutions to the Transformation Change Package (TCP) process which is managed by the U.S. Joint Forces Command.

Technology Partnership Momentum

Voltage pioneered integration with leading messaging gateway providers including fellow Red Herring Top 100 award winners; CipherTrust, and FrontBridge Technologies, and today Voltage secure email solutions are available from the widest range of message protection gateway providers.

To provide access to IBE technology to an ever expanding set of ISVs, Voltage introduced the Voltage IBE Toolkit in February at the RSA Conference. Initial Voltage IBE Toolkit partners include industry leaders such as:

  • CipherTrust – the leading provider of email and anti-spam security solutions.
  • Fujitsu PST – one of the leading integrators of software technology in Japan.
  • Gemplus – the world leader in smartcard solutions and services.
  • IMLogic – the leading provider of instant messaging management solutions.
  • Siemens Communications – one of the largest players in the global telecommunications industry.

The Voltage IBE Toolkit is the only commercially available toolkit implementation of IBE, and is designed for use by independent and corporate developers building secure applications for government, messaging, collaboration, wireless, document content security and CRM applications.

Continuing the expansion into new application areas over the last six months, Gemplus, HP Labs and STMicroelectronics have all announced smartcard products utilizing IBE, demonstrating the broad applicability of Voltage IBE technology to solving real world problems.

Voltage continues to demonstrate its technology leadership and innovation and in 2005 was awarded patent 6886096 which helps users securely communicate using IBE across multiple organizations.

 

Secure Mobile Messaging

Voltage IBE technology is particularly suited to the mobile environment and Voltage has continued to innovate and deliver secure mobile messaging solutions for Enterprises and Mobile Network Operators:

  • Voltage introduced a fully-integrated security add-on  for BlackBerry Enterprise Server™ from Research In Motion (RIM) (Nasdaq: RIMM; TSX: RIM).  The Voltage SecureMail for BlackBerry solution provides easy-to-use, certificate-free, content security for Internet-based email transmission that is interoperable with RIM’s BlackBerry® wireless security. 
  • Siemens Communications unveiled the award-winning Voltage SecureMail™ solution fully integrated with Siemens mobile office@vantage™, running on Microsoft Windows Mobile for PocketPC smartphones. The end-to-end secure mobile messaging solution with policy-based encryption for enterprise customers and Mobile Networks Operators ensures message security without requiring certificates to be created, managed or stored in the mobile device or anywhere in the system.

Wide Range of Industry Awards

Voltage has earned substantial recognition from a wide range of leading industry experts and publications including the following:

Red Herring Top 100 Private Companies 2005  - Red Herring

Cool Vendor in Security and Privacy 2005 - Gartner Group

RSA Excellence in Mathematics Award – 2005 RSA Conference
Email Security and Management - eWEEK Excellence Award 2005 finalist
Best Email Security Solution and Best Security Company - SC Magazine Global Award Finalist 2005

Top New Company and Innovator of the Year 2004 – AlwaysOn and KPMG

InfoWorld Innovators Award 2004 – InfoWorld

“Tops in Innovation” Award 2004 – Network World

 

About identity-Based Encryption (IBE)

Voltage Security products and services feature an award-winning, breakthrough technology called Identity-Based Encryption, or IBE. IBE was first proposed in 1984 by Adi Shamir, co-inventor of the widely-used RSA encryption algorithm. Shamir suggested that using common identities, such as an email address, directly as keys would greatly simplify the management and usability of cryptographic software. After 17 years, Professors Dan Boneh of Stanford University (co-founder of Voltage Security) and Matthew Franklin of University of California, Davis developed the first efficient and practical IBE system. Their algorithm, known as Boneh-Franklin IBE, enables an architecture for encrypting information without the need for certificates and complex infrastructure. Since the publishing of their original paper on IBE, more than 200 academic papers have been written on the subject of IBE and related technologies.

The practical application of Voltage IBE results in a solution that is:

  • Easy to implement and easy to manage – eliminates the overhead and costs inherent in traditional security solutions such as PKI
  • Highly scalable – no storage of keys or messages, and no need to contact online servers; allows the solution to scale dramatically without the need for additional infrastructure
  • Easy to use – no need for end users to worry about keys or certificates

About JAFCO Ventures

In July of 2003, JAFCO re-established its U.S. venture capital operations with the formation of JAFCO Ventures and the closing of JAFCO Technology Partners I, a $100 million venture capital fund.

JAFCO Co., Ltd., the parent company and major limited partner of JAFCO Ventures, is a Tokyo-based, publicly traded venture capital firm with investment partnerships worldwide. Founded in 1973, JAFCO has managed over 60 investment funds globally through its offices in Japan, China, South Korea, Singapore, Taiwan, North America, and other parts of the world.

About Siemens Venture Capital

Siemens Venture Capital (SVC) is the $600 million corporate venture organization for Siemens AG, (NYSE:SI) one of the largest global electronics and engineering companies with reported worldwide sales of $91.5 billion in fiscal 2004. The goal of SVC is to identify and fund investments in emerging and innovative technologies that will enhance the core business scope of Siemens, particularly in Information and Communications, Automation and Control, Medical Solutions, Automotive Technology and Transportation Systems, Power, and Lighting.

With offices in Munich, San Jose (CA), Boston (MA) and through Siemens Israel, Ltd. in Herzliya near Tel Aviv, SVC has an active portfolio of more than 70 start-up companies and 30 venture capital funds, and plays a key role in the global network of innovation. More: www.siemensventurecapital.com

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 SecureMail, Voltage SecureFile, Voltage SecurePolicy Suite, Voltage IBE Gateway Server and Voltage IBE Toolkit are all either trademarks or registered trademarks of Voltage Security, Inc. All other product names and trademarks are the property of their respective owner.