BECRYPT ACQUIRES ENHANCED-LEVEL GOVERNMENT SECURITY SOFTWARE IN MULTI-MILLION POUND DEAL

Encryption Specialist Broadens Product Range with Purchase of Serco Data Sentry Software

BeCrypt, the leading UK encryption security company, has acquired the rights to Serco's Data Sentry® encryption software. The multi-million pound deal will ensure that BeCrypt can extend its provision of UK Government-approved encryption software to existing and new customers throughout the UK Government and defence contractors. Additionally the companies have agreed to work together for an initial three-year period on additional products and features which will form part of future BeCrypt product releases.

BeCrypt has acquired the Intellectual Property Rights to all of Serco's Data Sentry software. This includes the commercial versions of the software as well as the UK Baseline and Enhanced Grade software that have been approved by the UK Government's Information Assurance (IA) arm of GCHQ, the Communication Electronic Security Group (CESG - www.cesg.org.uk). The group runs the CESG Approved Product Scheme (CAPS) under which encryption products are cryptographically verified by CESG to Her Majesty's Government (HMG) cryptographic standards and formally approved for use by the government and other appropriate organisations.

BeCrypt will integrate the software into the existing BeCrypt product range and distribute the software through selected BeCrypt Reseller and System Integrator Partners. The Serco Data Sentry Enhanced product will be renamed and sold as DISK Protect - Enhanced(tm) and sold alongside BeCrypt CESG-approved Baseline products DISK Protect(tm) and PDA Protect(tm). DISK Protect - Enhanced will run on the current Microsoft Operating Systems Windows NT, 2000 and XP.

DISK Protect - Enhanced will be the only CESG-approved software encryption solution available to handle protectively marked Enhanced (Secret and below) HMG data on computers running Microsoft Windows XP software.

"We are delighted to work with BeCrypt on the integration of the Data Sentry software into the BeCrypt Product line as they have proven themselves to be specialists in the provision of encryption software solutions to HMG customers," said Ian Pigden - managing director, Serco Justice. "Working closely with BeCrypt and their distribution channels will enable even more UK Government departments to access a full range of CESG approved encryption products," he continued. "BeCrypt's expertise as the leading supplier of encryption products to HMG customers will be invaluable in extending the use and acceptance of Enhanced grade technology while giving HMG customers better choice in the market".

BeCrypt and Serco have concluded an agreement that will ensure that existing Serco Data Sentry customers are not disadvantaged during the transfer of ownership of the software to BeCrypt. Serco will continue to take an active interest in the success of the Data Sentry technology and work with BeCrypt to ensure a successful software product integration program.

"BeCrypt is excited to work with market leaders Serco in the acquisition of the Data Sentry software," said Peter Jaco, CEO of BeCrypt. "We are confident that this acquisition will work well for existing and new customers as we can now offer an extended range of encryption software solutions to protect critical UK Government data. Bringing together our encryption technology expertise with the proven path to market of our distribution partners means that a simpler solution exists for the protection of data for HMG customers who need to protect data from Sensitive through Baseline, to Enhanced Grade, all from a single CESG-approved security vendor."

About BeCrypt

BeCrypt Limited was formed in 2001 to meet the growing demand for high-level computer encryption products in the international government and corporate marketplace. The company is a leading provider of enterprise encryption and security products designed to fully protect all corporate data. BeCrypt products protect customers in a number of key UK government areas including: central and local government, the military and defence sector, law enforcement and transportation. The company also services the commercial sector with key customers in financial services, pharmaceutical, insurance and banking sectors.

BeCrypt's DISK Protect and PDA Protect products have been designed to meet stringent government security standards and have been approved by the UK Government's Information Assurance group, the Communications Electronics Security Group (CESG) within GCHQ. This approval ensures BeCrypt products have met the needs of Government level security policy and standards without compromising usability.

BeCrypt has won an award from the Department of Trade and Industry for innovative technology and has patents pending on a number of unique encryption technologies.

Further information at http://www.becrypt.com

For additional product information or for sales
please contact:

BeCrypt Limited Rainier PR
Wyvols Court Chris Lee / Craig Brophy
Swallowfield
Berkshire RG7 1WY

Tel: +44 (0) 1189-880277 +44 (0) 20 7494 6570
Fax: +44 (0) 1189-880377



About Serco
Serco is one of the world's leading service companies. By successfully managing organisational design and change, we help national and local governments around the world to improve services across all aspects of their activities. Where appropriate we apply this capability to help commercial clients to achieve their strategic goals.
Serco has grown rapidly since the management buyout of RCA Services Limited some 16 years ago. We currently employ around 35,000 people in the UK, continental Europe, the Middle East, North America and Asia Pacific.
Serco's principal customer base is the public sector, representing 90% of our business. We are guided by a clear strategy and deeply-held values.
Serco was floated as a public company in 1988. Since then we've maintained an annual growth which has averaged in the high teens. Significantly, very little of that growth has come from acquisitions: it's been driven by building long term partnerships with customers, extending the scope and scale of our contracts, and winning new business by being seen to deliver results.
Further information at http://www.serco.com

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Serco Justice

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