Arcot Enhances FFIEC-Compliant Multi-Factor Authentication Solutions

Partnership with Quova Adds Real-Time Geolocation to Arcot's Risk Management Options

Sunnyvale, California -- September 27, 2006 — Arcot Systems, Inc., a leading provider of multi-factor authentication, credential management, and digital signature solutions, today announced a partnership with Quova, Inc., the authority on IP Intelligence and leading provider of Internet geolocation data and services, to deliver enhanced authentication capabilities for financial services enterprises. Quova's GeoPoint™ service has been integrated with the Arcot® RiskFort™ risk management product to provide the geographic location and connection data of Internet users. RiskFort measures the fraud potential of every online transaction and is part of Arcot's suite of FFIEC-compliant multi-factor authentication solutions. The partnership with Quova gives RiskFort customers the option of using Quova's proprietary mapping of the 1.4 billion IP addresses on the Internet as an additional layer of risk management and protection against online fraud.

Arcot's risk management technology has been delivering years of demonstrable results in its 3-D SecureTM business, saving a major bank $600,000 in the first two months of use by reducing fraudulent credit card transactions. This technology is delivered as part of our RiskFort solution which is being deployed at several major financial institutions protecting their online banking customers and enabling them to comply with the FFIEC mandate.

With Internet fraud increasing in frequency and sophistication, financial institutions need stronger authentication capabilities. Arcot has a spectrum of authentication solutions that can be deployed individually or in total, including:

• Risk assessment for validating user identity based on behavior characteristics
• Mutual authentication using a personal assurance message for site identification
• Keystroke logging protection with Arcot's patented, virtual “scrambled PIN Pad”
• Two-factor authentication using the patented ArcotID® software smart card
• Document encryption, secure electronic document delivery, signing with digital IDs.

“Arcot is a world leader in multifactor authentication solutions for the financial services industry, and we're delighted to be partnered with them,” said Gary Jackson, COO of Quova. “Arcot's integration of GeoPoint into its industry-leading RiskFort product will bring IP Intelligence online for banks all over the world. We expect this partnership to have an immediate and powerful market impact.”

Arcot's RiskFort examines the characteristics of each online transaction using device ID, IP address, time and frequency of access, and the amount and type of transaction. Quova enhances the analysis by providing geographic information for each IP address including continent, country, region (US only), time zone, state, city, postal code, longitude/latitude and phone prefix (US and Canada only). RiskFort uses this data to score the potential for fraud for every online transaction. Organizations set their own risk threshold for a range of response options, based on the risk score. The responses range from allowing a transaction, to prompting for additional information, to escalating to a customer service representative, to real-time blocking.

“Arcot is dedicated to helping our banking customers comply with FFIEC guidelines and provide a safe, simple experience for their users. With RiskFort, banks can reduce the risk of online fraudulent access and improve customer satisfaction,” stated R. ‘Doc' Vaidhyanathan, Vice President of Product Management for Arcot. “Quova is a world leader in geolocation and our customers will benefit greatly from Quova's expertise. Incorporating Quova's service into RiskFort gives organizations the ability to add specific geographic location criteria to their risk management application.”

For more information, visit www.arcot.com.

About Quova, Inc.
Founded in 2000, Quova, Inc. is the leading provider of IP Intelligence and Internet geolocation services to online businesses, including five of the world's six largest global Internet companies. Quova's patented technology provides the geographic location and connection data of website visitors in real time, enabling thousands of enterprises worldwide to detect fraud, manage digital rights, target content, conduct site analysis and ensure regulatory compliance. Quova's customers and partners include such industry leaders as Major League Baseball Advanced Media, BBC, Bell Canada, Cisco Systems, Coremetrics, Corillian, Globo, Bankinter, Times Online and Sky Sports. A privately held company with investments from Mobius Venture Capital, IDG Ventures, Nexus Group and Schoffstall Ventures, Quova is headquartered in Mountain View, California (T: 650.528.3700) with European headquarters in Amsterdam, The Netherlands (T: 31.20.888.45.30). Visit Quova online at www.quova.com.