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PrivateServer HSM Awarded FIPS 140-2 Validation

Pleasant Hill, California, 19 July, 2007

ARX (Algorithmic Research), a global provider of standards-based digital signatures and information-assurance solutions, today announced it was awarded the Federal Information Processing Standard (FIPS) 140-2 level 3 validation by the US government for its PrivateServer HSM (Hardware Security Module).

FIPS 140-2 is the US government's stringent security standard for cryptographic modules and is widely accepted as the benchmark for measuring the security assurance of these products.

"PrivateServer has always met the standards set by the US government. This latest validation to FIPS 140-2 is a testament to the strength of our Hardware Security Module’s design and implementation," says Ezer Farhi, Vice President of R&D, ARX.
The FIPS 140-2 standard is used to ensure cryptographic modules such as the PrivateServer HSM meet specified standards for applications used in the financial community, government and other industry sectors. For example, VISA and MasterCard require FIPS 140-2 level 3 validated HSMs for financial applications such as EMV and PIN verification. As part of the FIPS validation process, cryptographic modules are tested by government-certified laboratories to ensure they meet the standard's requirements and the results of the tests are closely scrutinized by NIST and CSE.

"This validation meets the demands of our many customers worldwide, ensuring their data is secured to one of the highest levels possible," adds Farhi.

PrivateServer HSM is already in use in financial institutions worldwide, including Standard Chartered Bank, Deutsche Bank Spain, SIBS Portugal, VolvoFinans, Setefi of the Intesa Banking Group, Polcard, G&D Spain and Getronics, among others.

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About PrivateServer™

PrivateServer is ARX’s highly secure network attached, Hardware Security Module (HSM) that provides a secure environment for conducting sensitive cryptographic operations, secure key storage and management of a large number of keys.

PrivateServer provides a cost-effective, highly secure (FIPS validated), and reliable solution. PrivateServer offers solutions to a versatile range of industries: financial, commercial, and governmental. More information about PrivateServer is available at www.arx.com/products/data-encryption.php

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About ARX Inc. (Algorithmic Research)

ARX has 20 years of experience assisting life sciences, healthcare, financial institutions, governmental organizations and commercial sectors to secure and streamline their processes and transactions. The company is a leading global provider of standards-based digital signature and information assurance solutions. ARX offers a wide range of high-end and state-of-the-art products and services designed to simplify, secure, and accelerate electronic transactions. ARX products are easy to use and simple to deploy, combining software and hardware solutions for small, medium and large business environments. ARX Inc. is a wholly owned subsidiary of Algorithmic Research Ltd., which went through an MBO process from Cylink Corp, today SafeNet, Inc. (NASDAQ:SFNT).

For more information, visit www.arx.com

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The
validation
is a testament
to the strength
of our HSM’s
design and
implementation


Ezer Farhi,
ARX
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