CREDANT dramatically increases lead in mobile data protection market purchases from Defense Finance and Accounting Service (DFAS), the world’s largest semiconductor company, one of the largest insurance companies in the U.S. and Japan, one of the largest banks in California, and one of  the country's top three providers of automobile and homeowners insurance 

DALLAS – October 10, 2006 – CREDANT Technologies, a leading provider of mobile data protection solutions, today announced another record quarter, with strong growth in the Americas fueled by regulations and the increase in concern about protecting the privacy of data stored on laptops and handheld devices.  The aggressive adoption of CREDANT Mobile Guardian, led by record-setting sales into the government, insurance, and financial markets, fueled the company’s increase in revenue bookings by 72% over last quarter and almost 400% over the same quarter in 2005.  CREDANT now has 278 clients, including more than 22 Fortune 100 companies that represent over 2.8 million cumulative product licenses sold. 

According to Privacy Rights Clearinghouse, more than 33 million Americans have become potential victims of laptop, computer or thumb drive theft since February 2005. Driven by the demand to encrypt personal and financial data stored on mobile devices, especially laptops, 86% of the third quarter revenues were for Windows PC platforms.  Unlike older approaches to encrypting data, CREDANT’s patented Policy-Based Intelligent Encryption technology does not create security holes or add overhead during the normal operational, support and data recovery processes because the operating system and program files are not encrypted. The CREDANT solution not only reduces the external threat to the privacy of data stored on any mobile device if lost or stolen, it also minimizes the internal threat of data being exposed on laptops or desktops when routine maintenance is performed.

“Quarter after quarter, 2006 has been a record-setting year for CREDANT. What sets CREDANT apart as the market leader in mobile data protection, is our vision, innovation and ability to deliver a holistic solution,” said Bob Heard, founder and CEO of CREDANT. “Combining that innovation with a world-class team, and by building partnerships with other leaders within their industry, and trusted relationships with customers, we’ve achieved unparalleled success.”

New CREDANT customers in the third quarter include two Fortune 500 companies. The world’s largest semiconductor company purchased CREDANT’s Shield to secure its Windows Mobile 5 handheld devices worldwide.  One of the largest insurance companies in the U.S. and Japan chose CREDANT Mobile Guardian to protect the privacy of data on the laptops of its independent affiliates and agents because it was the only solution that enabled the company to ensure that company data was encrypted, but did not interfere with other applications used by the independent agent.

Adding to the list of new clients, CREDANT welcomed one of the largest banks in California, the country's third-largest provider of automobile and homeowners insurance, the Defense Finance and Accounting Service (DFAS), University of California - Davis, and numerous industry leaders in financial services and healthcare. CREDANT’s growth is measured not only in the number of new customers and strong quarter-over-quarter revenue growth, but by customer satisfaction.  The increase in additional purchases by existing customers included the U.S. Army Medical Command which purchased 40,000 additional licenses, and the U.S. Army.  

In September 2006, CREDANT Technologies was positioned in the “Leaders Quadrant” of Gartner’s Mobile Data Magic Quadrant report for 2006.  (For a full report, go to www.credant.com ). According to Gartner, “leaders” are vendors who are performing well today, have a clear vision of market direction and are actively building competencies to sustain their leadership position in the market.

Banner Quarter for CREDANT’s Partner Program

• CREDANT’s partnership with Dell and Envoy delivered significant results in the third quarter.  Joint selling between Dell, Envoy and the CREDANT team resulted in securing one of the leading financial and business advisors to mid-corporate businesses, as a customer
• New reseller partners signed in the third quarter include Insight Software Spectrum, STI Group, AccessIT, Stack Computer, VeiligMobiel (Netherlands), headTechnology (Europe), and Randtronics (Australia).  

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• New resellers are quickly ramping up to add new customers. Insight Software Spectrum Information added as a customer, one of the top providers of processing and software services and products, primarily to mutual funds, insurance providers, banks, and other financial services. AccessIT added one of the premier global private equity firms.
• Continued momentum with Microsoft and customer demand culminated in CREDANT’s announcement of support for Windows Mobile 5 with the September release of CREDANT Mobile Guardian Group Edition version 2.0.

CREDANT also announced the results of its 2006 annual survey on mobile data breaches. The objective of the survey was to find out if organizations are prepared for future breaches. What the survey uncovered is that 88% of respondents know that large amounts of personally identifying data resides on employees’ mobile devices yet less than 20% of firms surveyed have implemented encryption. The report, which received national coverage on CNBC, is available to help organizations’ better understand the obstacles they need to overcome to ensure the privacy of sensitive data.

About CREDANT Technologies
CREDANT® Technologies is the market leader in mobile data protection solutions. CREDANT’s secure mobility solutions preserve customer brand and reduce the cost of compliance, enabling business processes to quickly and safely “go mobile.” CREDANT Mobile Guardian is the only centrally managed mobile data protection solution that provides strong authentication, policy-based intelligent encryption, usage controls, and key management that guarantees data recovery. By aligning security to the type of user, device and location, CREDANT ensures the audit and enforcement of security policies across all mobile end-points. Strategic partners and customers include leaders in finance, government, healthcare, manufacturing, retail, technology, and services. CREDANT was selected by Red Herring as one of the top 100 privately held companies and top 100 Innovators for 2004, and was named Ernst & Young Entrepreneur Of The Year® 2005. Austin Ventures, Menlo Ventures, Crescendo Ventures, Intel Capital and Cisco Systems are investors in CREDANT Technologies. For more information, visit www.credant.com.