Thales 3D-Security Module Passes Compatibility Testing with Arcot's TransFort Payment Authentication Solution.

WESTON, Fla. -- Thales today announced that its 3D-Security Module has successfully completed compatibility testing with TransFort(TM) V6.0, Arcot System's industry-leading e-Payment authentication solution for card issuers.

This announcement reinforces Thales' commitment to support developing security standards required for major markets, regionally and globally. This is a significant milestone for the 3D-Security Module, as Arcot Systems, Inc.'s e-Payment authentication solution (Arcot TransFort(TM)) has been deployed by over 9,000 credit and debit card issuers as well as major processors and card associations. Over 10,000 merchants are enabled to participate in 3D-Secure programs using Arcot's TransFort(TM) solutions.

With the 3D-Security Module, developers of Access Control Servers for MasterCard's SecureCode(TM), Visa's Verified by Visa(TM), and JCB J/Secure(TM) have access to a high security hardware platform to provide protection of cryptographic keys and operations as mandated.

The 3D-Security Module provides:

--Optimized cryptographic calculations for all 3D-Secure operations, such as CAVV, AAV, and ParRes Signature

--A packaged solution including tools to facilitate the key management of cryptographic keys with card associations and the bank's back office systems

--A cost effective and highly scalable architecture, from a few thousand to millions of cardholders.

"Arcot and Thales have jointly tested the Thales 3D-Security Module with TransFort v6.0," stated R. "Doc" Vaidhyanathan, Vice President of Arcot Systems, Inc. "Arcot is pleased to offer another option for Hardware Security Modules for our TransFort customers."

Paul Meadowcroft, Head of Transaction Security, e-Security activities, Thales, commented: "Our HSM products have been a key security component at the heart of the global card payments infrastructure for over 20 years. The 3D-Security Module and its compatibility with Arcot's System's TransFort product demonstrates Thales' continued commitment to supporting new security and payment standards, and provides our customers with the confidence that Thales can satisfy all their security needs now and for many years to come."

About Thales

Thales is an international electronics and systems group, serving Defense, Aerospace, Security and Services markets. The group employs 61,500 people and generated revenues of $13 billion in 2003. Operating in three main markets covering e-security, card payment, and network security, Thales' e-Security activity addresses the business, government, and finance industries' need for cryptographic security products and solutions. Over half of the world's banks, together with the majority of the busiest exchanges, currently use Thales technology. Visit the e-Security site of Thales on the Web at http://www.thalesesec.com.

About Arcot Systems

Arcot Systems, Inc. is the leading provider of convenient and secure e-payment, digital signing and identity management solutions for financial services, pharmaceuticals and security-conscious enterprise environments. The power of PKI with the simplicity of passwords - Arcot's patented ArcotID(TM) Software Smart Card is the clear choice for strong authentication of users and digital signing of transactions and documents. Arcot's solutions are easy to deploy, cost effective, internet scalable and compliant with industry standards - 3-D Secure, Identrus and SAFE. Over 20,000 customers and millions of end consumers use Arcot's solutions to dramatically reduce fraud and increase security without sacrificing convenience. For more information, please visit http://www.arcot.com.

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