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Contact: Mike Yaffe
NTRU
(781) 418-2525
myaffe@ntru.com

NTRU Secures $26.1 Million in Second-Round Funding

Investor AB Joins Texas Instruments, SONY and Macrovision in Backing First Practical Security Solution for Next-Generation Services

Burlington, Mass. - October 9, 2001 - NTRU, providing the highest-performance security solutions for consumer devices and applications, announced today the company has raised $26.1 million in Series B financing. Investor AB, through its wholly owned subsidiary Investor Growth Capital, led the round, with participation from Texas Instruments, Sony, Macrovision, Lehman Brothers Venture Capital, Greylock, Granite Ventures and 3i. NTRU is well positioned for current and future growth as a result of a strong capital base. Total investment to date exceeds $38 million.

"Our ability to complete such a successful - and oversubscribed - financing round is a clear indication of the demand for NTRU technology in high-growth markets," said Scott Crenshaw, chief executive officer of NTRU. "Our patented technology is the best, and in many cases the only, practical security solution for resource-constrained devices and large-scale applications. NTRU eliminates the tradeoffs inherent in older systems, and fundamentally changes market expectations for security technology. With the backing of such exceptional investors, NTRU is in a unique position to invest in large high-growth markets and establish the next generation of security paradigms."

Fortified by this financing round, NTRU will strengthen and build upon its position as the emerging security standard for wireless, multimedia, and RFID (radio frequency identification) applications. The proceeds give the company the runway to create a sustainable, long-term position in these markets and firmly establishes NTRU as a stable and reliable partner for its customers. NTRU's continuing practice of strong capitalization and fiscal responsibility is a vital competitive advantage.

"NTRU's dramatic competitive advantages are a result of major innovations, which provide a sustainable barrier to entry for competitors," said David Lee, managing director of Investor Growth Capital, the venture investment arm of Investor AB. "With the capitalization this round provides, we believe NTRU is uniquely positioned to deliver ubiquitous security solutions to high-growth markets."

"Efficient security is a catalyst for widespread adoption of 2.5 and 3G services," said David Potts, OMAP worldwide applications and m-commerce manager of Texas Instruments, the world leader in wireless semiconductor technologies. "We chose NTRU security to be optimized for TI's OMAP architecture, a processing platform for enabling real-time wireless applications, such as m-commerce, multimedia and banking applications, on 2.5 and 3G devices. The investment in NTRU demonstrates our belief that wireless security technology will deliver competitive advantages to our customers."

"NTRU's high-performance security solution is well-positioned for future Internet and wireless video delivery," added Bill Krepick, president and COO of Macrovision. "We believe that NTRU will be an excellent partner to work with as we develop secure digital rights management solutions for Internet downloads and streamed video entertainment content."

About NTRU

NTRU is rapidly becoming the security standard in such markets as mobile communications, handheld computing, multimedia, digital consumer and embedded solutions. Unlike other cryptosystems, the Company's public-key cryptography is the only practical security solution that provides ultrafast performance and strong protection on, for example, small, multimedia or wireless devices. These distinct advantages enable the delivery of secure, real-time applications, devices with longer battery life and ultimately, a more desirable user experience. Investors include Texas Instruments, Sony Corporation, Macrovision, Lehman Brothers Venture Capital, Investor AB, Granite Ventures, Greylock and 3i. For more information, visit www.ntru.com.

Note: NTRU security products are protected by US Patent No. 6,081,597; other US and foreign patents pending.

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