VALICERT COMPLETES MEZZANINE ROUND OF FINANCING

Validation Authority Pioneer Raises More than $23 Million From Leading Institutional Venture and Corporate Investors

MOUNTAIN VIEW, Calif., September 7, 1999 - ValiCert, Inc., the leading supplier of software and services for validating digital certificates, today announced it has secured more than $23 million in additional funding from a group of leading venture and corporate investors. Leading the funding is Lucent Venture Partners, a wholly owned venture capital subsidiary of Lucent Technologies. Other participants include CIBC Bank, Financial Technology Ventures, First Analysis, France Telecom, Gemplus, Korea Technology Banking, Mitsui, and Thompson-CSF Ventures.

Last year, ValiCert raised nearly $7 million from August Capital, Bessemer Venture Partners, Draper Fisher Jurveston, Intel Corporation, U.S. Venture Partners, all of whom participated in this round.

This mezzanine round of funding, which brings ValiCert's total funding to more than $30 million, will enable ValiCert to continue its market expansion and support its development of industry-leading validation solutions for the public key infrastructure market, which Gartner Group, a research company, expects to reach $1.1 billion by 2001.

"We are committed to leading the industry in providing Validation Authority solutions, and are very excited about the breadth and diversity of our new investor syndicate," said Yosi Amram, president and CEO of ValiCert. "We expect their financial, technology and distribution experience to play a critical role as we continue to add value to our business domestically and internationally."

"The e-commerce market is growing rapidly as consumers, corporations and governments rely increasingly on the Internet for secure communications and commerce," said Hassan Parsa, partner, Lucent Venture Partners. "ValiCert's management and development teams have demonstrated exceptional knowledge and expertise in providing a security framework for this burgeoning market."

"We are pleased to support ValiCert's expansion of its solution as e-commerce continues to gain momentum on a global basis," said Jean-Michel Barbier, president and CEO of Thomson-CSF Ventures. "This round of funding will enable ValiCert to greatly extend the availability of its Validation Authority solutions, allowing companies around the world to securely conduct business transactions over the Internet."

In the past year, ValiCert has moved to extend its Validation Authority solutions and services worldwide through alliances with key application, service, and platform vendors in the public key infrastructure marketplace, including Baltimore Technologies, Entegrity Solutions, Entrust Technologies, GlobalSign, GTE Internetworking, Intel Corporate, Microsoft Corporation, Netscape Communications and Thawte Consulting. Some of ValiCert's Validation Authority customers include Identrus, various departments in the U.S. Government and various departments in the Canadian Government.

Currently, ValiCert is participating in the worldwide business-to-business trust network recently announced by Identrus. The fully operational pilot links a number of Identrus member banks, and is intended to serve as the "proof of concept" for a larger, global Identrus trust hierarchy. Planned for commercial release in 2000, the Identrus network is expected to enable trading partners around the world to conclusively identify one another over the Internet in a broad array of business-to-business commerce applications.

ValiCert Validation Authority Solutions

ValiCert's Validation Authority (VA) products and services deliver enterprise- class, scalable certificate validation solutions that provide superior trust and interoperability for users of digital certificates. Through its world-class PKI Interoperability Lab, CAs and directories from leading vendors are certified to ensure their compatibility with ValiCert's VA solutions. ValiCert's solutions support all mission-critical PKI applications including secure extranets, Virtual Private Networks (VPNs) secure forms, and secure messaging and document delivery.

About ValiCert

ValiCert provides a universal, scalable family of products and services for quickly and economically verifying the validity of digital certificates. ValiCert combines validation technology with applications and professional services to create scalable, interoperable Validation Authority (VA) solutions that enable secure e-commerce and communications over the Internet. The company has technology and marketing alliances with leading worldwide providers of security services and products. ValiCert is headquartered in Mountain View, Calif. and is available on the World Wide Web at http://www.valicert.com.