Protegrity Announces Record Results.

Defiance and Innovation Equals Success for Protegrity

SAN FRANCISCO -- For Protegrity Corporation (http://www.protegrity.com), a leading provider of data security management solutions, 2006 was a very good year.

Protegrity's uniquely pragmatic approach to data security management continues to drive the company's achievements. Protegrity's award-winning solutions protect data from threats, even if the network's perimeter security has been breached. 2006 was a breakthrough year for Protegrity. Revenues more than double and there were significant successes in large-scale merchants and enterprise-wide security implementations.

Protegrity's data security management suite, Defiance[TM] 4.0, released in February at RSA Conference 2006, continues to gain strong momentum. Defiance[TM] 4.2, the latest release, has a fast growing client base around the world in all industries, including retail, financial services, healthcare, government, manufacturing and education.

Defiance 4.2 is the first integrated data and application security suite to completely protect sensitive data from creation to deletion at the application, database, file, and storage levels. With Defiance 4.2 organizations can secure and control sensitive data throughout its lifecycle, across the enterprise and across a wide range of computing platforms.

Protegrity solutions also ensure compliance with industry and government data security and privacy regulations such as the Payment Card Industry (PCI) Data Security Standard, Sarbanes-Oxley, HIPAA, GLBA, and the UK Data Protection Act.

Protegrity's market presence now spans the globe, with offices in the U.S, Europe, Asia, and the Middle East. The company's rapidly growing customer base includes:

* A major retailer who is using Protegrity to protect the flow of sensitive credit card information from the store, through to back office systems and into the data warehouse and storage. The central key management and control across platforms was critical for this success.

* A large supermarket chain selected Protegrity's Defiance to protect credit card information on their legacy mainframe applications. Critical factors for success were ensuring performance could keep up with the processing power of the mainframe, while being transparent to exiting applications.

* A major retailer selected Protegrity initially to protect sensitive information in their Teradata data warehouse. Through the year, they have now rolled out Protegrity's solutions to protect data in databases on the iSeries (AS/400), zSeries (mainframe), Oracle and MS SQL Server, and to protect files that reside across platforms including Unix and z/Series.

* A major bank is using Defiance to protect their applications with Web facing front-ends, defending their clients' information against attack through SQL injections, cross-site scripting and other serious threats.

In 2006 Protegrity announced strategic partnerships with Teradata, SafeNet, Inc., and Patrick Townsend & Associates.

In March 2006, Protegrity acquired OmniSecure, a privately held data security company based in Santa Clara, California and China. OmniSecure developed a patented approach to file-level encryption which provides transparent encryption to protect sensitive data in files (images, applications, databases). Protection extends to include servers, backup tapes and storage systems. This technology was integrated into the Defiance Suite with the 4.2 release.

In November 2006, Protegrity was awarded United States Patent 7,120,933, for a method of detecting intrusion in a database managed by an access control system. This patent enables a computer system to automatically discover and quickly avert threats by spotting and denying malicious access requests before any information is transmitted to the user. Protegrity owns other key patents for database and application security and protection.

"We'd like to thank our customers, partners and employees for their enthusiastic support in 2006," said Gordon Rapkin, Protegrity's CEO and president. "2007 is already shaping up to be an outstanding year for Protegrity. Many of the ideas we've pioneered regarding real data protection and system security are increasingly becoming industry-mandated best practices. We look forward to an exciting year as we continue to provide the solutions and services that meet business needs."

ABOUT PROTEGRITY

Protegrity Corporation delivers enterprise-wide data security management solutions for end-to-end protection for applications and sensitive data, enabling companies to deploy comprehensive security policies with centralized management and auditing. Protegrity is committed to protecting sensitive data wherever it resides in today's highly distributed and heterogeneous computing environments.

Protegrity empowers management to take responsibility for sensitive data by mitigating legal and financial risks associated with security breaches and assuring compliance with regulatory requirements for data security.

For more than ten years, Protegrity's award-winning technology has enabled customers to address and resolve critical security challenges. Protegrity invented the core technology used for data-level encryption and owns key patents for database and application security and protection.

For more information call 203.326.7200 x1004.

Protegrity and Defiance are either registered trademarks or trademarks of Protegrity Corporation. All other trademarks are the property of their respective owners.