Utimaco Stresses Encryption as Key to Both California SB 1386 Compliance and Internationally Uniform Regulation.

FOXBOROUGH, Mass. -- U.S. lags behind EU, Asia-Pacific countries on electronic privacy laws

SafeGuard Utimaco U.S.A., a leading provider of professional IT security solutions, has identified encryption as the "killer app" for assuring compliance with the California Security Breach Information Act (SB 1386) and other international electronic privacy laws. Further, the company views encryption as the key security measure on which to focus in order to bring worldwide uniformity to privacy regulation.

SB 1386, often cited as the Identity Theft Prevention Act, took effect in California on July 1, 2003 and is the first and only such law in the United States. Much of the focus since its enactment has been centered on the mandate for disclosure of any breach of security that results in unauthorized access to an individual's personal information. However, the legislation also requires that companies and government agencies demonstrate "due care" for protecting information residing on their databases, and calls directly for the encryption of data.

"Encryption is the only true safeguard of privacy," noted Walter Loiselle, Vice President Operations and Technical Support of North America for Utimaco. "Individuals aren't satisfied simply knowing when their confidential information has been compromised - they don't want it to be at risk in the first place."

Although California SB 1386 was a significant first step in assuring information privacy, its status as the only such law in the United States illuminates the lack of uniform worldwide regulation on encrypting data. Legislation addressing the protection of confidential information has been favored in other countries for years. European privacy laws, such as the European Union Privacy Directive movement, govern the usage and deletion of personal data within and across EU countries, and stress the use of strong encryption methods. Several other countries across Asia-Pacific have also taken similar steps before the United States.

"SB 1386 has already called U.S. companies to attention, even those who operate outside of California, but more needs to be done to catch up with Europe and Asia and assure consistency among electronic privacy laws," added Loiselle. "We believe an emphasis on specific standards surrounding encryption represents the swiftest path to creating internationally uniform regulation."

About SafeGuard Utimaco U.S.A.

Based in Foxborough, Mass., SafeGuard Utimaco U.S.A. is a business unit of Utimaco Safeware, AG. The company provides technical, sales and marketing services throughout North America and Canada for Utimaco's extensive line of platform-independent, mobile, desktop, and network security solutions. North American customers include PriceWaterhouse, and the Canadian Revenue Agency. SafeGuard Utimaco also has technology partnerships with market leaders such as IBM, Microsoft, Card Systems, and Siemens. A full list of technology partners as well as reseller partners can be found at http://www.utimaco.us.