Authentica Gains Momentum in 2002; Growing Demand for Content Security Solutions to Meet HIPAA Privacy and Security Requirements Contributes to Doubled Sales Revenues.

Business Editors/High-Tech Writers

WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 21, 2003

Authentica, Inc., the premier provider of content security software for protecting corporate intellectual property and confidential business information, today announced that the company had an extremely successful year in 2002 in terms of revenue growth, new customers, additional financing, and industry recognition. Driving the company's success was an increased demand for secure messaging software in the healthcare industry where HIPAA regulations mandate the privacy and security of personally identifiable health information.

"2002 was a pivotal year for Authentica," said Lance Urbas, president and CEO at Authentica(R). "We experienced tremendous growth during a very difficult economic period and continued to instill investor confidence which resulted in an infusion of $4 million in funding from our existing investors. From Fortune 1000 companies to government agencies, organizations are realizing that the security of their intellectual property and confidential information is critical to their businesses and they are now taking the necessary steps to protect it."

Authentica's highlights for 2002 include:

-- Doubled revenue growth over 2001 with new and expanded deployments of Authentica's software at organizations including Banner Health System, BlueCross BlueShield of Tennessee, Chapman Tripp, Department of the Treasury, Fruit of the Loom, MedCath Corporation, Saint Luke's Hospital, Simmons & Co., and the University of Southern Indiana;

-- The closing of a $4 million round in additional financing from existing investors including 3i US, Greylock, Intel 64 Fund, North Bridge Venture Partners, Norwest Venture Partners, and Venrock;

-- Introduction of Authentica SafeRoute(TM), an enterprise secure messaging solution for guarding sensitive e-mail shared within or outside corporate boundaries. SafeRoute is the first secure messaging solution to provide both automatic e-mail security and the option for individual users to protect their own outgoing messages; and

-- Industry recognition that included being named to EContent Magazine's list of "100 companies that matter most" in the digital content industry and Authentica's selection by Pentagon officials as one of 17 companies offering the