Zero-Knowledge Systems Raises US$22 Million Financing

Business Wire, March 14, 2001

Business Editors

MONTREAL--(BUSINESS WIRE)--March 14, 2001

Zero-Knowledge Systems Inc., the leading provider of privacy technologies and services for consumers and business, announced today it has raised US$22 million in financing from Reuters, the global information, news and technology group, through its Greenhouse Fund, and a consortium of investors including participants in earlier rounds of Zero-Knowledge financing.

"We are very pleased to have raised this significant infusion of financing, particularly in light of the unfavorable financial market conditions," said Tamas Hevizi, president and CEO of Zero-Knowledge Systems. "With this financing, these investors have validated Zero-Knowledge's strategic direction and our vision of a viable and maturing privacy industry with Zero-Knowledge at the forefront."

With an increased awareness of privacy issues and the reality of legislative compliance considerations, consumers and businesses are ripe for the sophisticated privacy technology and solutions that Zero-Knowledge has developed. The company will use this additional investment to broaden the delivery of its industry-leading technology and solutions to its customers, both enterprises and consumers.

David Lockwood, Managing Partner of the Greenhouse Fund, said, "We invest in enabling technologies for market leaders in Finance, Media and Network Infrastructure. Our work with many of the world's largest companies has led us to the conclusion that the demand for privacy solutions will grow exponentially in the coming years. Zero- Knowledge is the global leader in privacy solutions today: the company has the technology, brand, and now with the addition of Tamas Hevizi, the management to further strengthen its market leadership."

In addition, Lockwood has joined the Board of Directors of Zero-Knowledge Systems. Previously a Managing Director at Goldman Sachs, Lockwood's operational experience and investment focus are in financial and e-commerce markets. During his ten years at Goldman Sachs, David built and managed businesses for the firm throughout the world. In 1999, David founded and headed the International E*Markets Group. From 1997 to 1998, he co-headed the Global Securities Group. In 1993, he co-founded the Asian brokerage business, building sales, trading and research. As part of his responsibilities, David also led relationships with major world stock exchanges and ran proprietary trading desks as well as global risk for several equity products.

In addition to securing financing, Zero-Knowledge also announced today that it is reorganizing the company to focus on delivering its technology and services in the most effective manner to its customers, both enterprises and consumers. This reorganization will allow Zero-Knowledge to continue to provide the best privacy technologies to its customers.

About Zero-Knowledge Systems, Inc.

Zero-Knowledge Systems (http://www.zeroknowledge.com) is the leading provider of privacy enabling technologies and services for both consumers and enterprise. Zero-Knowledge Managed Privacy Services(TM) (http://www.zeroknowledge.com/business) provides expert consultation and privacy-enhancing solutions that enable businesses to comply with privacy legislation, maximize customer relationships and build consumer trust without violating privacy. Zero-Knowledge Freedom(R) Internet Privacy Suite provides consumers free access to the most easy-to-use privacy and security features - including a personal firewall, form filler, cookie manager, ad manager and keyword alert - in addition to its leading paid premium services offering untraceable private email and anonymous browsing and chat. Freedom 2.0 for Windows 95/98, 2000, Me and Linux is available as a free download at http://www.freedom.net and Freedom source code is available at http://opensource.zeroknowledge.com.

(Freedom(R) and Zero-Knowledge(R) are trademarks of Zero-Knowledge Systems, Inc. These trademarks may be registered in certain jurisdictions. All other trademarks are sole property of their respective owners.)