CipherTrust Achieves Another Record First Quarter

Company Extends Lead in Regulatory Compliance, Accelerates Momentum in SMB Market and Expands Global Initiatives to Solidify Messaging Security Leadership Position

ATLANTA, June 3, 2005 – CipherTrust, Inc., the leader in messaging security, today announced it once again completed another record first quarter, marked by positive cash flow, solid sales and revenue growth, product leadership particularly related to outbound messaging security and continued expansion of key global initiatives.

During the latest fiscal quarter, CipherTrust® achieved a number of milestones including the following:

* Continued stellar growth and strong sequential quarterly increase in sales, with the addition of approximately 100 enterprise customers including Loblaws, Hydro One, Intercontinental Hotels and NY State Health and Human Services
* Achieved over 85% competitive win rate in head-to-head evaluations
* Experienced 11th consecutive quarter of positive cash flow
* Launched distribution network in small and medium business (SMB) segment, which contributed to 56% sequential sales growth
* Doubled sales in regulatory compliance market with the launch of Compliance Control and enhanced Secure Delivery offerings
* Continued to excel in channel activities both domestically and internationally, expanding CipherTrust’s broad network of channel integrators and resellers to more than 100 partners
* Grew business in Asia-Pacific (APAC) by more than 200%
* Enhanced TrustedSource™ reputation service to respond to changes in a sender’s behavior, better pinpoint zombie activity and immediately shut down zombie attacks
* Expanded global customer support by adding a state-of-the-art United States-based call center to ensure high levels of multi-national support for global customers, decrease hold times and streamline routing of cases to expert engineers
* Continued to receive unmatched third-party validation for IronMail®, winning “Editor’s Choice” in PC Magazine, “Reviewer’s Choice” in Government Computer News, and the “Best E-mail Security Solution” for the second year in a row by the readers of SC Magazine
* Awarded to the Red Herring 100 for the top private technology companies in the United States, and to the Atlanta Business Chronicle Pacesetters for the fastest growing companies in Atlanta, both for the second year in a row

“CipherTrust once again demonstrated significant results and leadership in the e-mail security space,” said Jay Chaudhry, CipherTrust chairman and chief executive officer. “We continue to beat competitors in head-to-head deals while maintaining our business model which has generated cash for 11 straight quarters. We also continue to make significant investments in our product, our international operations, our compliance offerings, and our ability to support the new customers we add each quarter. As the pioneers of this space, CipherTrust has the staying power to continue innovating and leading the messaging security market.”

The Undisputed E-Mail Security Leader
During the first quarter, CipherTrust extended its lead in regulatory compliance as companies move toward a total security solution to address both inbound and outbound messaging security needs. The Company doubled sales of its Secure Delivery offerings, which support multiple encryption technologies and help businesses comply with regulatory compliances. CipherTrust demonstrated solid momentum in the SMB market since the launch of its S-Class product line in the fourth quarter, nearly doubling the sales during first quarter of this year. New S-Class customers included Parexel, Hallmark Entertainment, Colfax, Bebe Women’s Stores, Otis Spunkmeyer Cookies and Russell Stover Candies. In addition, CipherTrust received further validation of its IronMail product leadership and the company’s strength of management and execution through various awards and reviews, which are available on the CipherTrust Web site at http://www.ciphertrust.com/company/press_and_events/awards_and_reviews.php.

Technology Innovation
During the first quarter, CipherTrust announced major product enhancements to its TrustedSource reputation service, which responds to changes in a sender’s behavior to better pinpoint zombie activity and immediately shut down zombie attacks; its Secure Web Delivery (2.0) product, the Company’s robust staging server to securely store sensitive messages; and its Central Management Console, which provides businesses greater control and flexibility for managing their messaging environment. In addition, CipherTrust released IronMail version 5.0, which bolsters the Company’s compliance capabilities via its Compliance Control features which include new dictionaries, content inspection capabilities and reporting options specifically for regulations such as HIPAA, GLBA and SoX.

Expanded Global Initiatives
CipherTrust continued to build its channel program on a worldwide basis, providing further evidence of the escalating strength of the Company’s channel leadership across the globe. In North America, the Company’s channel operations gained significant strength, converting 16 resellers from its competitors and starting operations of its first set of authorized training centers. CipherTrust’s Europe, Middle East and Africa (EMEA) and APAC teams also gained significant traction during the first quarter, and CipherTrust now has a local presence in 26 countries to better service its global customers. In EMEA, CipherTrust generated considerable momentum, and the United Kingdom operations moved toward a single tier distribution model. In APAC, the Company signed more than 20 resellers, contributing to its significant growth. To keep pace with rapid growth, CipherTrust opened a state-of-the-art, United States-based call center to provide world-class, multi-national support to customers 24 hours a day, seven days a week.

Thought Leadership
CipherTrust continues to invest in groundbreaking research to contribute to protecting the messaging systems of its more than 1,500 global enterprise customers. During the first quarter, CipherTrust dedicated significant resources to monitoring and analyzing new zombie networks. In May, CipherTrust announced the launch of its ZombieMeterSM, a new online resource that tracks the number of new, completely unique zombies per hour, every hour. Visitors can view real-time updates regarding new zombie activity across the world, including the origination of messages and the number of machines affected by zombie activity. The ZombieMeter is available on the CipherTrust Web site at http://www.ciphertrust.com/resources/statistics/zombie.php.

About CipherTrust, Inc.
CipherTrust, Inc. is the leader in messaging security. Recognized by IDC as the market leader, the Company’s award-winning IronMail appliance protects the messaging systems of more enterprise e-mail users than any other solution, including more than 30 percent of the Fortune 100. CipherTrust pioneered messaging security by uniquely combining the five critical e-mail security components of spam and fraud prevention, virus and worm protection, policy and content compliance, e-mail privacy, and intrusion prevention into a single easy to deploy and manage platform. The Company is backed by top tier investors including Battery Ventures and Greylock Partners. For more information about CipherTrust, please visit www.ciphertrust.com or call .