Authentica Acquires SHYM Technology; Security Software Vendors Combine Technology, Management Depth and Capital.

Business/Technology Editors

WALTHAM, Mass.--(BUSINESS WIRE)--Dec. 17, 2001

Authentica, Inc., the premier provider of software for securing business intellectual property both within and beyond the corporate domain, today announced the acquisition of SHYM Technology Inc. of Needham, Massachusetts, provider of security and trust management solutions for enterprise applications. The terms of the acquisition were not disclosed.

Through this deal, Authentica strengthens its business structure by acquiring SHYM's security products and technology, as well as its significant working capital and key personnel. The infusion of capital allows Authentica to expand the penetration of its patented Active Rights Management(TM) (ARM) technology and products (MailRecall(TM), PageRecall(TM) and NetRecall(TM)) into Global 2000 enterprises, product integration partners and system integrators.

"The acquisition of SHYM Technology greatly strengthens Authentica in three important ways," said Lance Urbas, Authentica's president and CEO. "We add depth and breadth to our existing product lines and technology suite, we significantly strengthen our balance sheet, and we add talented resources to our team. We welcome our new SHYM team members to Authentica and look forward to leveraging these new resources to expand our leadership in the market."

Joining Authentica will be 12 SHYM Technology employees, led by Jim Geary, SHYM's former president and CEO. Geary becomes executive vice president in charge of business development and marketing at Authentica. Several other executives and technologists from SHYM are joining Authentica to support the business growth. Combined, Authentica's management and technology team led by Urbas boasts significant strength in Internet security applications, having served in key management positions at Raptor Systems, Axent, Motorola, and Security Dynamics (later renamed RSA Security). Additionally, the Authentica Board of Directors has expanded with the acquisition. Ed Braginsky, former VP of corporate business development for BEA Systems, adds further depth to the already impressive venture investing team that backs Authentica.

According to the Yankee Group, the market for securing and delivering digital content is expected to reach $2.0 billion over the next four years. "As more and more business is done electronically, the need for securing and controlling that content before, during, and after delivery is even greater," said Geary. "The acquisition of SHYM allows Authentica to continue enhancing the value of its offerings, and the end result is that Authentica's 60-plus customers gain a wider set of solutions for securing their intellectual property, confidential correspondence and dealings with their partners and customers."

MailShym, an automated S/MIME-based secure messaging product, will be added to Authentica's award-winning secure messaging product line, MailRecall and MailRecall Gateway, under a new name with Authentica "MailRecall" branding. This addition broadens the markets and applications Authentica currently serves, and enables Authentica to offer a solution for virtually any secure messaging application ranging from a standards-based S/MIME product to the post-delivery control features of Authentica's ARM architecture. The acquisition of SHYM Technology also adds valuable authentication services in the areas of X.509 digital certificate technology as well as integration with Lightweight Directory Access Protocol (LDAP) services. These elements augment Authentica's powerful support for industry-standard authentication services.

About SHYM Technology

SHYM Technology was founded in 1998 and provides plug-in security and trust management solutions for enterprise applications. Its MailShym solutions accelerate the adoption of secure e-mail as the cornerstone for Internet transactions. Combining plug-in security integration products and a cutting edge trust management platform, SHYM quickly and cost-effectively delivers new levels of trust to today's e-business applications. SHYM Technology investors include leading venture capital investors Venrock Associates, North Bridge Venture Partners, Canaan Partners, and 3i Technology Partners.

About Authentica

Headquartered in Waltham, MA, Authentica, Inc. is the premier provider of information security software that lets businesses and organizations protect intellectual property and sensitive information throughout its lifecycle. Based on the company's patented Active Rights Management(TM) (ARM) technology, Authentica's suite of enterprise-ready products - MailRecall(TM), PageRecall(TM) and NetRecall(TM) - lets users dynamically control and manage their recipients' "use rights" to information including the rights to view, print, copy, and forward information, no matter where it is located. One of Computerworld's "100 Emerging Companies to Watch in 2001," Authentica provides its product suite to the pharmaceutical, legal, healthcare, financial, and manufacturing industries as well as government intelligence agencies. Authentica investors include North Bridge Venture Partners, Greylock, Norwest Venture Partners, JP Morgan and the Intel 64 Fund. For additional information, please visit www.authentica.com or contact us at [phone].

Active Rights Management, MailRecall, PageRecall, and NetRecall are trademarks, and Authentica, SHYM, and MailShym are registered trademarks of Authentica, Inc. All other trademarks and trade names are the property of their respective companies.