Cryptography Research Experiences Rapid Adoption of its Security Technologies in 2009; Sees Continued Growth in 2010

SAN FRANCISCO, USA —January 19, 2010 — Cryptography Research, Inc. (CRI), a world leader in security systems, today announced that in 2009, more than 4.5 billion security chips were manufactured under license to CRI’s semiconductor security technologies. The company’s business and technical growth in 2009 result from long-term investments in developing compelling and innovative solutions to some of the world’s most challenging and costly security and piracy challenges. CRI’s growth has solidified the company’s position as one of the world’s leading intellectual property (IP) licensors to the semiconductor industry.

"Whether a customer is protecting money, content, intellectual property, product integrity or customer data, we always strive to develop the most appropriate solution for long-lasting security,” said Paul Kocher, president and chief scientist at CRI. “We have seen rapid adoption of our security technologies in 2009, reflecting the strength of our technology portfolios and our track record of solving fraud, counterfeiting and piracy problems for our customers. Our focus on delivering security solutions with easily-measurable and compelling ROI for our customers has been successful despite the challenging economic climate, and will continue to serve us well in 2010 and beyond."

DPA Countermeasures—Extensive Adoption in Smart Cards and Increasing Demand in Other Industries

Differential Power Analysis (DPA) is a form of attack that involves monitoring variations in the electrical power consumption of a target device, then using advanced statistical methods to derive cryptographic keys and other secrets. CRI developed the fundamental patents for DPA countermeasures and has licensed them to all major chip makers in the smart card industry. DPA countermeasures are mandatory under the standard Common Criteria protection profiles for smart cards, as well as other security standards.

In 2009, Atmel, EM Microelectronic, Inside Contactless, Samsung, and ST Microelectronics joined Infineon, NXP, and Renesas on the growing list of leading chip manufacturers to sign DPA countermeasures licensing agreements with CRI. Also in 2009, MasterCard began requiring that its suppliers have a license from CRI. CRI’s licensed DPA countermeasures are now found in more than 95 percent of smart cards produced annually.

Adoption of CRI’s DPA countermeasures continued to increase in other areas as well, including pay television set-top boxes, secure storage devices and mobile phones. In 2010, CRI plans to broaden its licensing focus for DPA countermeasures, including additional efforts to enroll manufacturers of hardware for government products, mobile devices and other commercial and consumer products where security is important.

CryptoFirewall Security Core—Protecting Against Piracy and Counterfeiting for More than Seven Years

CRI also experienced increased adoption of its other flagship technology, the CryptoFirewall™ security core. The CryptoFirewall security core, now integrated into more than 75 million pay television set-top boxes worldwide, is a self-contained hardware security core designed to protect cryptographic keys and computations in a chip from attack even if surrounding components are compromised. A platform-agnostic technology, the CryptoFirewall security core has earned a perfect security track record and both complements and reinforces the technologies utilized by conditional access companies.

In 2009, CRI announced agreements with chip manufacturers Broadcom and ViXS. Both companies will integrate the CryptoFirewall security technology into their system-on-a-chip (SoC) products. In addition, CRI launched the CryptoFirewall security core for use in anti-counterfeiting applications. In total for 2009, CRI completed five CryptoFirewall security core tapeouts for high volume commercial applications, which represent the final technology delivery step before mass production. The company sees significant increased demand for the CryptoFirewall security core in 2010 and beyond, and continues to invest in its world class engineering team to meet these needs.

Other 2009 Achievements

  • Despite the economic downturn, CRI was profitable for the 14th consecutive year, increased its employee count by 25 percent, and added two key executives: Carole Coplan, vice president of business development, tamper resistant solutions, and Pankaj Rohatgi, technical director, hardware security solutions. These new executives have helped CRI expand its business development and engineering capabilities to meet increasing global demand for the company’s DPA countermeasures.
  • Paul Kocher, president and chief scientist, was elected to the National Academy of Engineering (NAE) in February 2009 for his contributions to cryptography and Internet security. Election to the NAE is considered to be among the highest professional distinctions accorded to an engineer.
  • CRI received the Frost & Sullivan "2009 World Smart Card Technology Leadership of the Year Award" for its excellence in technology innovation, business development, formulation of a competitive strategy, and industry adoption rates. The award acknowledges the importance, widespread commercial adoption, and sophistication of CRI’s DPA countermeasures.