Arcot Smart Card Alternative Recognized by Identrus for Secure Authentication and Digital Signing Solution.

Business Editors and High Tech Writers

NEW YORK and SANTA CLARA, Calif.--(BUSINESS WIRE)

Sept. 25, 2002-

ArcotID(TM) `Software Smart Card' is the First All-Software

Authentication Method Certified Identrus(SM) Compliant

Arcot Systems, Inc., a leading provider of solutions for securing electronic identities, today announced that it is Identrus Compliant with its ArcotID software smart card for secure authentication and digital signing. This solution, which is available today, is the first Identrus Compliant form of private key protection done exclusively in software. Identrus standards can now be met through a software-based solution that is simpler and less expensive to deploy than the currently available hardware-based alternatives.

The ArcotID software smart card has been certified as Identrus Compliant based on its universal signing capability that accepts industry standard smart cards and digital certificates. To obtain Identrus certification, Arcot met Identrus requirements and was certified for secure authentication and signing. This provides Identrus customers with the opportunity to deploy flexible software-based certificates in addition to hardware-based smart cards.

The Arcot approach relies on the ArcotID software smart card to strongly authenticate users and digitally sign transactions, performing all the functions of a traditional, physical smart card but in a software format. Using Arcot's patented camouflage approach to securing a private key, the Arcot ID securely protects a user's credential in a tamper-proof software container, while providing the end user the maximum flexibility and convenience by virtue of its portability and roaming capability.

Arcot's solution offers a universal signing interface that provides strong authentication and digital signing for users whether they choose to use an industry standard hardware-based smart card and digital certificate or the ArcotID software smart card. This flexibility and interoperability is a great benefit to banks that need to support and add multiple authentication approaches across user groups and still administer and control them from a single platform.

"We are delighted that Identrus has certified the ArcotID software-based digital certificate solution" said Robert Ludlum VP, of ABN AMRO's Working Capital eCommerce Group. "With Arcot, Identrus banks now have an additional option that is scalable, cost effective and easy to deploy. This gives our customers new choices to support their growing requirements for secure solutions that can be implemented with greater flexibility."

"Strongly authenticated proof of identity and digital signatures are a requirement for global e-commerce. It is our goal to provide a range of options to meet the needs of Identrus banks and their commercial customers." said Greg Worch, chief marketing officer of Identrus. "Our work with Arcot helps us achieve this goal."

"Arcot and Identrus are working together to expand e-commerce by providing trusted services," said Ram Varadarajan, President and CEO of Arcot. "Our unique software smart card approach will help accelerate e-business initiatives for Identrus banks. It solidifies Arcot's position as the pre-eminent provider of digital authentication solutions for financial institutions."

The ArcotID(TM)

The ArcotID stores an individual's digital credentials in a tamperproof software container that can only be activated using a PIN number known only to the user (much like an ATM card). The software container is protected by Arcot's patented Cryptographic Camouflage technology, and is impervious to any direct or offline hacker attack. The ArcotID has a very small "footprint" and can be easily downloaded to any device the user chooses from their home PC to a PDA or a cell phone, and the user can keep multiple ArcotIDs on multiple devices without fear of compromise. In this way, the user can enter into a secure business transaction from anywhere, anytime.

About Arcot

Arcot Systems, Inc. is the leading provider for securing identity and payments in Internet-scale, transactional and wireless environments. Only Arcot provides cost-effective, scalable, software solutions based on the ArcotID(TM) Software Smart Card for strongly authenticating users and transactions for payment systems, Web-based email, Web portals and virtual private networks. Arcot solutions meet the business need for strong transactional security while providing the customer a user-friendly experience with anytime, anywhere convenience. Arcot serves over 3000 customers today including leaders in financial services, healthcare, and e-commerce that use Arcot solutions to protect their customers' privacy and reduce fraud. For more information, visit www.arcot.com.