nCipher First Hardware Security Vendor to Deliver Enhanced Security and Performance to Secure Web Services

Cambridge, UK – December 10, 2002 – nCipher plc (LSE:NCH), a leading provider of cryptographic IT security solutions, today announced a strategy that aligns its hardware-based encryption products as a basis for securing XML-based applications and Web Services. nCipher also announced new partnerships with leading-edge XML security vendors, including Forum Systems, Reactivity and Westbridge Technology. Through these partnerships, and with nCipher’s existing hardware security products, customers are provided with a number of choices to develop truly secure Web Services and gain the benefits of seamlessly integrating business processes and applications, within and between organizations.

The challenge of deploying security to XML applications and Web Services represents a barrier to widespread adoption of these services. Providing capabilities such as privacy, authentication, authorization, integrity and non-repudiation through the use of cryptography and digital signatures has already been established as best practice security in the SSL and PKI markets. These proven security techniques have been incorporated into the XML security standards developed by the W3C. As with any use of cryptography, the management and protection of the cryptographic keys and overall performance issues are critical to the successful delivery of Web Services. nCipher is the market leader in applying hardware-based cryptography to manage and protect cryptographic security and its products are therefore ideally suited to meet the security needs of XML and Web Services today.

“With Web Service platforms from companies such as BEA Systems, IBM, Microsoft and Oracle already making it easy to develop Web Services, the problem now becomes how to secure these services. Companies are developing Web Services today, and now is the time for security vendors to take a focused approach to secure these services and XML technologies,” said Richard Moulds, vice president of marketing, nCipher. “Companies such as Forum Systems, Reactivity and Westbridge Technology understand the need for secure XML, and are at the forefront of this new market and will act as a catalyst to widespread adoption of Web Services. With the ability of our products to meet XML security needs, and the tight integration with these partners, nCipher is demonstrating its commitment to be a driving force in Web Services security.”

“nCipher is clearly filling a critical gap in the continued adoption of Web Services,” says Ronald Schmelzer, senior analyst at ZapThink, LLC. “Security is the most immediate and largest barrier to widespread adoption of Web Services. While there are many solutions and technologies emerging for solving pieces of the security puzzle, there is a definite need for a high performance, robust, and reliable security infrastructure to enable these higher level solutions.”

nCipher XML-ready Products:

XML and Web Services security relies on encryption and digital signatures. Through its existing FIPS (Federal Information Processing Standards) validated hardware-based encryption and cryptographic key management products, nShieldâ„? and nForceâ„?, nCipher is able to offer hardware security, scalability and cryptographic key management making the use of advanced cryptography and digital signatures a compelling proposition, enabling customers to put their trust in Web Services. As the use of cryptography and XML security evolves and traffic levels increase, nCipher’s products provide a unique combination of security and performance. By accelerating processor-heavy encryption tasks to avoid performance bottlenecks, and through the use of flexible security models enabled by such as nCipher’s Secure Execution Engineâ„? (SEEâ„?), nCipher’s partners are well placed to introduce new and innovative capabilities and gain market differentiation.

New XML Partners:
nCipher, working with its customers, has identified key points of risk in delivering Web Services and to target these requirements has announced partnerships with the following leading-edge XML security vendors:

· Forum Systems provides comprehensive XML Web Services security solutions in appliances, protecting XML down to the data level and throughout the data lifecycle. Forum System and nCipher have partnered in an OEM agreement to automate key management and storage as well as embed FIPS level security directly on the Forum Sentry� XML security appliance.

· Reactivity Service Firewall� systematically monitors and secures XML messages and eliminates the need to custom code security into each application. Reactivity has partnered with nCipher to provide integrated accelerated SSL encryption and secure key generation, storage and management within a FIPS-validated hardware security module. (See separate release today)

· Westbridge Technology’s XML Message Server provides critical XML Firewall functionality that comprehensively secures any XML and Web Service interface. Westbridge has partnered with nCipher to provide true end-to-end security and performance acceleration capabilities for Web service communication including support for SSL encryption, XML encryption, XML signature and advanced cryptographic key management. (See separate release today)

“To offer the privacy and authentication that our XML hardware security appliance customers demand means that we rely on being able to use cryptography throughout our system. We understand XML security and how to apply cryptographic techniques in a standards way to protect our customer’s XML-based Web Services. The integration of our two product lines makes perfect sense and our partnering with nCipher insures our customers have one of the best XML security solution available to allow them to develop and deploy secure Web Services today,” said Weston Swenson, president and CEO of Forum Systems.

“Now organizations deploying Web Services can secure and monitor their applications together with powerful cryptographic acceleration and secure key management,” said Leon Baranovsky, vice president of marketing at Reactivity. “We are excited to work with an industry leader such as nCipher in offering our customers a scalable and manageable best of breed security solution for their Web Services applications.”

“The combination of Westbridge Technology and nCipher solutions provides our enterprise and public sector customers with a comprehensive set of XML security features with the performance boost and physical security of hardened FIPS-certified security hardware. Web Service security standards, such as WS-Security, rely heavily on cryptographic manipulations as fundamental building blocks for XML security. The customer demand for end-to-end XML security with high-throughput encryption, digital signature and key services will explode,” said Kerry Champion, president of Westbridge Technology.

About Forum Systems
Forum Systems, Inc. delivers XML Web Services Security Appliances for companies using strategic XML applications such as procurement, financial exchange, and insurance processing. The Forum Sentry is the first and only product series to provide data-level security throughout the entire data lifecycle, creating comprehensive XML Web Services security solutions for business-critical information where it is most vulnerable. Forum Systems, founded in 2001, is headquartered in Salt Lake City, UT. For more information contact 801-313-4400 or www.forumsys.com.

About Reactivity
Reactivity software solutions secure XML-based application integration to help organizations pursue new business opportunities faster and more efficiently. The company’s flagship Reactivity Service Firewallâ„? reduces application integration risks by systematically monitoring and securing the XML messages moving between business partners, internal organizations and customers. This “drop-in” solution speeds application deployment and reduces costs by eliminating the need to custom code security into each application. Founded in 1998, Reactivity is venture-funded by Accel Partners and targets Global 2000 enterprises in select vertical markets employing XML and Web Services to integrate applications. Reactivity is located in Belmont, California, and can be reached at www.reactivity.com, +1(650) 551-7800 or by email at info@reactivity.com.

About Westbridge Technology
Westbridge Technology develops infrastructure software that provides enterprises with comprehensive security and monitoring for XML Web Services networks. The Westbridge XML Message Server enables full visibility and control of XML networks even in decentralized, heterogeneous and cross-enterprise environments all without adding any code. The Westbridge XML Message Server provides XML Application Firewall technology, including authentication, authorization, encryption, digital signature support, real-time monitoring and protection against new forms of malicious attacks possible against Web Service interfaces. For more information, please visit http://www.westbridgetech.com.
About nCipher
nCipher is redefining cryptographic security to protect points of risk across the enterprise-from network appliances to Web servers, to custom software applications and back-end databases. nCipher provides hardware and software solutions that enable organizations to implement best practice security by addressing the challenges of cryptographic key management and performance. Many of the world’s leading organizations-from Microsoft and Barclays Bank to PricewaterhouseCoopers and the U.S. Navy-rely on nCipher to deliver a sound e-security infrastructure. nCipher’s products are particularly well suited to organizations with high volumes of security-sensitive transactions, such as banking and financial institutions, government departments, e-retailers and online service providers.