Authentica Gains Momentum in 2002; Growing Demand for Content Security Solutions to Meet HIPAA Privacy and Security Requirements Contributes to Doubled Sales Revenues.

Business Editors/High-Tech Writers

WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 21, 2003

Authentica, Inc., the premier provider of content security software for protecting corporate intellectual property and confidential business information, today announced that the company had an extremely successful year in 2002 in terms of revenue growth, new customers, additional financing, and industry recognition. Driving the company's success was an increased demand for secure messaging software in the healthcare industry where HIPAA regulations mandate the privacy and security of personally identifiable health information.

"2002 was a pivotal year for Authentica," said Lance Urbas, president and CEO at Authentica(R). "We experienced tremendous growth during a very difficult economic period and continued to instill investor confidence which resulted in an infusion of $4 million in funding from our existing investors. From Fortune 1000 companies to government agencies, organizations are realizing that the security of their intellectual property and confidential information is critical to their businesses and they are now taking the necessary steps to protect it."

Authentica's highlights for 2002 include:

-- Doubled revenue growth over 2001 with new and expanded deployments of Authentica's software at organizations including Banner Health System, BlueCross BlueShield of Tennessee, Chapman Tripp, Department of the Treasury, Fruit of the Loom, MedCath Corporation, Saint Luke's Hospital, Simmons & Co., and the University of Southern Indiana;

-- The closing of a $4 million round in additional financing from existing investors including 3i US, Greylock, Intel 64 Fund, North Bridge Venture Partners, Norwest Venture Partners, and Venrock;

-- Introduction of Authentica SafeRoute(TM), an enterprise secure messaging solution for guarding sensitive e-mail shared within or outside corporate boundaries. SafeRoute is the first secure messaging solution to provide both automatic e-mail security and the option for individual users to protect their own outgoing messages; and

-- Industry recognition that included being named to EContent Magazine's list of "100 companies that matter most" in the digital content industry and Authentica's selection by Pentagon officials as one of 17 companies offering the most promising technology ideas for the Office of Force Transformation.

According to a recent PriceWaterhouseCoopers report, 138 Fortune 1000 corporations and small and mid-sized companies surveyed experienced losses of proprietary information and intellectual property totaling between $53 to 59 billion for a one-year period ending June 30, 2001.

"The loss of intellectual property and sensitive information continues to be a big challenge for most enterprises," said Ray Wagner, Ph.D., research director, information security strategies at Gartner. "This challenge, combined with government privacy and data security regulations like HIPAA and Gramm-Leach-Bliley creates a significant market opportunity for content security solutions that allow organizations to persistently protect content after delivery to recipients."

Authentica's content security suite includes the SafeRoute secure messaging solution, PageRecall(TM) for secure document sharing and NetRecall(TM) for secure sharing of Web content. Authentica's products can protect information persistently even after it is downloaded, allowing full control over the distribution, printing, expiration and revocation of information.

About Authentica

Headquartered in Waltham, Mass., Authentica, Inc. is a leading provider of content security software for protecting valuable and confidential information shared within and beyond corporate boundaries. The company's suite of enterprise-ready products combines patented rights management capabilities with industry standard encryption, authentication and access controls. Designed for a wide range of applications, Authentica's products ensure the secure delivery of information and provide continuous control over content even after it's delivered to recipients. Authentica provides its product suite to the healthcare, manufacturing, financial and legal industries as well as government agencies. Authentica investors include 3i US, Canaan Partners, Greylock, Intel 64 Fund, JP Morgan, North Bridge Venture Partners, Norwest Venture Partners, Symantec Corporation, and Venrock. For additional information, please visit www.authentica.com or contact us at [phone].

Authentica is a registered trademark, and SafeRoute, PageRecall, and NetRecall are trademarks of Authentica, Inc. All other brand or product names are or may be trademarks of, and are used to identify products or services of, their respective owners.