Arcot Systems to Offer 3-D Secure(TM) with Visa International to Globally Provide Secure Mobile Card Payment Transactions; Strong Authentication Software Leader Makes Mobile Phone Shopping Secure Across Borders

SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 13, 2005--Arcot Systems, a provider of solutions for securing e-business transactions, and Visa International, the world's leading payment systems provider, today announced the extension of the Verified by Visa(TM) (VbV) secure online shopping program to mobile phone transactions conforming to the latest Visa dynamic passcode authentication specifications. The first implementation is being piloted in Russia and Europe with Visa member banks, mobile operators, and technology providers.

Arcot is the leading provider of e-payment card authentication solutions, the essential ingredient to any secure online transaction. More than 10,000 card-issuing financial institutions rely on Arcot's TransFort(TM) payment authentication solution. Many of the financial industry's payment processors and more than 20,000 merchants additionally use TransFort to protect the digital identities of millions of consumers worldwide.

“We believe that by joining our Mobile Bank with the VbV project, Arcot will be supporting Visa to ensure that consumers have the ability to conduct commerce everywhere, anytime, and any way they want it.”

Arcot was the first software provider to enable 3-D Secure-protected mobile telephone transactions via its patented TransFort authentication platform. TransFort offers payment authentication solutions for all parties of an online transaction, including issuing banks, payment processors, online merchants, and merchant aggregators.

"Arcot is proud to participate in this important initiative," said Ram Varadarajan, CEO of Arcot Systems. "Visa International has a reputation for its progressive attitude towards adopting new technologies and for its high level of market-responsiveness. The extension of the VbV program to mobile devices is an important milestone in the development of a secure global mobile e-commerce model."

The extension to mobile devices will help promote and grow the use of secure online shopping in Visa's CEMEA region (Central & Eastern Europe, Middle East & Africa).

"The number of mobile phones is expanding rapidly in Russia and the Commonwealth of Independent States, and users are increasingly demanding new services," said Oleg Makhotin, Head of New Technologies for the Visa Russia & CIS region. "We believe that by joining our Mobile Bank with the VbV project, Arcot will be supporting Visa to ensure that consumers have the ability to conduct commerce everywhere, anytime, and any way they want it."

About Arcot Systems

Arcot is a leading provider of secure e-payment, digital signature, identity management, and strong authentication software solutions for financial services, bio-pharmaceutical, and other security-conscious enterprises. The company offers a suite of easily deployed, cost-effective, and scalable software-based solutions that provide powerful "multi-factor" protection to limit online transaction fraud. Arcot's patented camouflage technology creates a virtual software "smart card" -- the Arcot ID(TM) -- that is transparent to the user as it verifies a person's identity and allows for the digital signing of transactions and documents. Unlike other strong authentication solutions, the ArcotID system does not require users to carry physical tokens/smart cards, or to employ digital certificates that sit vulnerable on a user's desktop. Arcot's solution secures protection for private keys for the user on any computer, thus enabling secure roaming, and providing strong authentication with the convenience and simplicity of passwords. Whether used as a robust standalone solution or in tandem with extranet access, single sign-on, or hardware authentication systems, the company's products meet the business need for strong transactional security, high functionality, and application/systems interoperability while providing the customer with a seamless, user-friendly experience. Arcot's offerings are compliant with industry standards including 3-D Secure, FFIEC, Identrus, and SAFE (Secure Access for Everyone). Organizations also work with Arcot to meet compliance with legislative requirements such as Sarbanes-Oxley and HIPAA.

Arcot is a private company headquartered in California's Silicon Valley, with offices in the United Kingdom, Germany, and India. The company's customers include members of the top 100 banks, the top 10 pharmaceutical companies, and the top 10 e-commerce sites in the world. For more information, visit www.arcot.com.

About Verified by Visa(TM)

Verified by Visa is based on Three Domain ("3-D") Secure protocol, the payment industry's internet authentication standard. Developed by Visa, 3-D Secure allows card issuers to authenticate cardholders using passwords, chip cards, digital certificates, etc. during purchase transactions. Verified by Visa can be readily integrated into existing merchant e-commerce systems with little impact on the checkout process. Over 15 million Visa cardholders globally are active users of Verified by Visa services for making internet purchases. Verified by Visa, established three years ago, is supported by 30,000 internet shops and 10,000 member banks globally. For more information, visit http://www.visaeu.com/iusevisa/main.html.