Arcot Systems Receives 2006 Digital Authentication & Security Product Innovation of the Year Award; Frost & Sullivan Recognizes Arcot for Its Innovative, Software-Only Multi-Factor Authentication and Digital Signing Solution

Business Wire, June 28, 2006

SUNNYVALE, Calif. -- Arcot Systems, Inc., a leading provider of multi-factor authentication, credential management, and digital signature solutions, today announced the company has won Frost & Sullivan's Digital Authentication & Security Product Innovation of the Year Award. Frost & Sullivan, a global growth consulting company, recognized Arcot for its development of the ArcotID(R), a unique software-only solution for electronic strong authentication and digital signing.

The ArcotID, which is based on the company's patented Cryptographic Camouflage(TM) technology and employs the industry standard X.509 digital certificates as the underlying technology for authentication, was selected for its unmatched ability to deliver the strength of hardware digital authentication and signing solutions in a software form factor. Amongst other applications, the ArcotID facilitates and reduces the time and cost for the implementation of physical smart card systems in the enterprise while still providing strong authentication security levels. Combined with the product's flexibility and its cost-effectiveness in comparison with hardware multi-factor authentication alternatives, these attributes distinguished the ArcotID as the best choice for Frost & Sullivan's 2006 Innovation Award.

"Arcot is proud to receive this recognition from Frost & Sullivan, a globally recognized and well-respected research and consulting firm," said Ram Varadarajan, President, CEO and Co-founder of Arcot Systems. "This award acknowledges the tremendous work that our team has put into the development of the ArcotID over the past nine years. And as a leader in the authentication and digital signature market, we will continue our commitment to developing innovative solutions that meet the business needs of our enterprise customers."

"Arcot Systems is a leading product innovator in the field of digital authentication and security, as exemplified by the company's creation and practical deployment of the ArcotID software-based smart card," said Amit Jain, research analyst with Frost & Sullivan's Technical Insights group. "Arcot facilitates the implementation and management of strong multi-factor authentication by substantially reducing the overall complexity and cost of deployment."

About Arcot Systems

Arcot Systems is a leading provider of secure e-payment, strong authentication, credential management, and digital signature software solutions. The company's cost-effective and highly scalable software-based authentication products limit online transaction fraud and enable advanced functionality such as the turn-key issuance of roaming credentials and secure electronic document exchange. Arcot's products meet the need for strong, multi-layered transactional security while providing customers with a seamless, user-friendly experience. The company's offerings are compliant with U.S. and international standards including 3-D Secure, IdenTrust, SAFE and FFIEC Internet Banking Authentication recommendations. Enterprises also work with Arcot to meet legislative requirements such as Sarbanes-Oxley and HIPAA. Over 11,000 card-issuing banks and 25,000 online merchants and other enterprises use Arcot to protect the identities of millions of consumers worldwide. For more information, visit www.arcot.com and www.frost.com.

http://www.arcot.com/releases.html