Arcot Collaborates with Adobe to Make Digital Signing Practical For Business and Consumer Use; ''Out-of-the-Box'' Digital Signing Solution Enables New Online Applications and Services: Replaces Cumbersome ''Print and Sign'' Processes.

SUNNYVALE, Calif. -- Arcot Systems, Inc., today announced a collaboration with Adobe Systems Incorporated to enable a new option for digital signing in Adobe(R) Acrobat(R) software and Adobe Reader(R) software using easy-to-use "Roaming Digital IDs." Adobe has embedded Arcot patented technologies into these applications, laying the framework for secure digital signing, anywhere, anytime, without the need for additional software or hardware. Users of Acrobat and Adobe Reader will have an "out-of-the-box" ability to sign PDF documents enabling enterprises to maximize the value of their electronic business process, eliminate the need to "print and sign," and help prevent fraud.

New Capabilities Make Digital Signing Practical

This marks a significant step forward in simplifying the digital signing process while maintaining a high level of security. The Roaming Digital ID is securely stored in the Arcot(R) SignFort(TM) server and directly accessed from Acrobat or Adobe Reader. This allows a person to digitally sign a document at any time; from home, work, or on the road. Arcot's patented ArcotID(R) "software smart card" provides strong, two-factor authentication of the user and controls access to the digital ID verifying that only the authorized person is signing.

This is easier to deploy and more cost-effective than provisioning each user with a smart card and more secure than simply storing the digital ID on a computer's hard drive protected with just a password. SignFort also logs every time a document is signed and provides a complete audit trail for non-repudiation. This capability helps companies comply with regulatory requirements.

"Together, Adobe and Arcot now provide an exceptionally easy-to-use digital signature solution," said John Landwehr, Director, Security Solutions & Strategy at Adobe. "The Roaming Digital ID allows Acrobat 8 and Adobe Reader 8 to be a complete digital signing solution for the desktop without the need for additional client configuration. Simply click, authenticate, and the document is signed."

Early efforts at transforming paper processes to e-paper failed at the "last mile" when approvers lacked digital IDs to sign PDFs. Previously it was difficult to issue and manage the life cycle of digital IDs, and it was difficult to secure digital IDs. This joint Arcot and Adobe solution eliminates the obstacles associated with putting a "digital pen" in the end-users' hands. Now users will be able to sign and return contracts, mortgage papers, approval forms and other business documents in seconds, rather than hours or days. Roaming Digital IDs solve the "last mile" problem by providing secure access to digital credentials anywhere, anytime.

"Working together, Arcot and Adobe provide real ROI benefits to enterprises around the world. Companies can now easily deploy digital signing because their users will already have the Arcot signing solution embedded in every copy of Adobe Acrobat and Adobe Reader," stated Ram Varadarajan, President and CEO of Arcot Systems. "This solution will finally make digital signing practical for business and consumer use."

Other Applications Made Possible with ArcotID

The same ArcotID delivers easy, accessible authentication to consumer and business web portals and provides Financial Institutions with FFIEC compliance and enterprises with secure VPN authentication. The ArcotID with the Arcot WebFort(TM) authentication server provides strong twofactor authentication and thwarts Man-in-the-Middle attacks. The ArcotID is protected with patented "Cryptographic Camouflage" preventing brute force attacks. Because the ArcotID behaves like a smart card it not only provides strong authentication but can store digital IDs for applications such as secure e-statement delivery, e-coupon redemption and other applications requiring secure one-to-one communication.

"Enabling users to access ArcotID through capabilities embedded in every copy of Acrobat and Reader offers a nearly ubiquitous way for enterprises and organizations to roll-out an authentication solution for end-user access to their networks," Varadarajan continued. "The ArcotID may be unique in its ability to so easily enable strong authentication of both documents and users."

To learn more, visit our web site at www.arcot.com.

About Arcot Systems

Arcot Systems is a leading provider of secure e-payment, strong authentication, credential management, and digital signature software solutions. The company's cost-effective and highly scalable software-based authentication products limit online transaction fraud and enable advanced functionality such as the turn-key issuance of roaming credentials and secure electronic document exchange. Arcot's products meet the need for strong, multi-layered transactional security while providing customers with a seamless, user-friendly experience. The company's offerings are compliant with U.S. and international standards including 3-D Secure, IdenTrust, SAFE and FFIEC Internet Banking Authentication recommendations. Enterprises also work with Arcot to meet legislative requirements such as Sarbanes-Oxley and HIPAA. Over 11,000 card-issuing banks and 25,000 online merchants and other enterprises use Arcot to protect the identities of millions of consumers worldwide. For more information, visit www.arcot.com.