Discretix's CryptoCell to be Incorporated into the Philips Nexperia Cellular Multimedia Basebands

Netanya, Israel, San Mateo California, March 14, 2005 Discretix Inc., the leading provider of embedded security solutions for mobile devices and flash-based storage, today announced that CryptoCell has been selected by Philips to be included in the Nexperia Cellular Multimedia Basebands. CryptoCell provides the cellular subscriber with an improved level of device security as well as improved performance and power consumption critical in rich-media and device management type applications.

The rapidly evolving requirements of mobile security have created a clear shift towards hardware-based security solutions. Increasingly the mobile devices' security capabilities are being stretched by applications such as Digital Rights Management, Over-the-Air (OTA) Device Management and Secure Storage. This in conjunction with the increased need for device security, improved performance and reduced power consumption has led to the adoption of CryptoCell as an important piece of the mobile infrastructure going forward. In addition the deployment of robust security solutions at the chipset level benefits the entire value chain by increasing trust, lowering costs, and driving the deployment of applications and service revenues.

CryptoCell also incorporates software components and Device Toolkits that can be used by developers to embed security into their applications. The combination of CryptoCell together with the Device Toolkits results in a security solution which can be seamlessly integrated at the applications level and is transparent to the end-user.

"The market is evolving rapidly and we have reached the point where robust security solutions are a must. The Discretix CryptoCell solution gives us the right balance of security and flexibility to meet the stringent security requirements of Device Management and DRM." said Bruno Bocaert, General Manager, market segment team baseband at Philips Semiconductors.

Commenting on the agreement Edo Ganot, EVP Sales and Business Development said, "Nexperia has captured the higher ground in cellular multimedia applications. Philips' selection of CryptoCell is further indication of the need to deploy robust, hardware-based security solutions at the chipset level."

About Discretix

Discretix is a leading provider of embedded security technology for mobile devices and flash based storage. Discretix technology, which incorporates both hardware and software components, enables security to be incorporated into products at the chipset level so that it's transparent to the user while protecting sensitive information from malicious attacks, viruses, fraud, and theft. Discretix device toolkits fit into a wide array of devices and mobile systems to enhance security, reliability, and user experience. Discretix technology benefits the entire value chain of chip and platform vendors, device manufacturers, application providers, and operators by eliminating the need for them to devote resources to security, thereby lowering operation costs, increasing trust and driving increased deployment and greater revenues. For more information, please visit www.discretix.com.