MXCP.L Regulatory News (MXCP)

14 Sep 2005 07:01

2 ergo Group plc14 September 2005 Embargoed until 07.00 14th September 2005 2ergo group plc ("2ergo" or "the Group") New Secure Protocol added to Multiserve Platform 2ERGO PURCHASES SECURITY PATENT FOR UNIQUE RESPONSE AND AUTHENTICATION MESSAGING ENCRYPTION SOLUTION 2ergo, the AIM listed provider of convergent mobile communication solutions, ispleased to announce that it has purchased the patent to Sure on Sight Limited'sunique Response and Authentication Messaging Encryption Process, which, onceintegrated within the Group's Multiserve Platform, will provide the MobileIndustry with a brand new protocol to deliver secure communication solutions. Branded as 2safeguard, this solution can be used to provide the highest levelsof data security for any mobile transaction, whether person-to-person orperson-to-machine. Security is central to the success of all data and communication transfers,specifically the encryption of data to facilitate the secure transmission ofinformation between multiple parties. An equally important requirement that theprotocol provides for is the identification and audit logging of thecommunicating parties which will reduce instances of repudiation of anytransaction. 2ergo's newly acquired encryption solution defines a unique way to handle atransaction which is both user friendly and extremely secure. Under theGovernment's Security Classifications, 2safeguard has the capacity to make amobile phone more secure than a credit card chip and PIN system. Applications that can utilise 2safeguard are varied and can be delivered easily.Examples of use include payment solutions, such as credit cardholder "notpresent" transactions, e-wallet, online purchases and m-commerce. In addition,it opens up new opportunities to exploit highly secure mobile communications forpublic sector and commercial organisations. 2safeguard provides a new, innovative technology to combat fraud, lending itselfto be utilised by Government, Mobile Operators, Banking and other FinancialInstitutions, for supplying a number of totally secure communication and paymentsolutions. This new protocol could also just as easily be applied to publicsector applications. The Group hopes that 2safeguard will accelerate theadoption of such services once they can be delivered in a secure environment. 2safeguard could solve four of the largest issues that have been restricting theMobile Industry for years. It provides a secure transactional solution, it canprotect consumers from unscrupulous merchants and can also protect minors frombeing able to gamble and stop them accessing adult content via the web or ontheir mobile device. The Group also believes that the introduction of 2safeguard will provide themobile network operators with a secure m-commerce environment within its alreadyestablished core infrastructure. This would significantly reduce the need fornew development, ease capacity constraints and also resolve the concernssurrounding the European e-money Directive. Juniper Research, a specialist telecom research company, predicts that by 2009global mobile commerce revenues will be $88 billion (USD) and the global marketfor mobile gambling services, including lotteries, sports betting and casinostyle gaming will rise from $5.7 billion in 2006 to over $19.3 billion. This is further underpinned by Telecom Trends' recent research which predictsthat m-commerce services are also expected to grow from 94.9 million users to1.67 billion users by 2008. Credit card fraud in 2004 in the UK alone wasreported by APACS to be over half a billion pounds and with the advent of thepotential growth of on-line and mobile commerce this figure is expected toincrease significantly without the introduction of a robust and easy to usesecurity solution. These forecasts clearly highlight the rapid upward trend for mobile payments andthe need for secure communication solutions, demonstrating the significantgrowth prospects that the pioneers of this technology will see. Commenting on the deal, Barry Sharples, Joint Managing Director of 2ergo, said: "Upon first discovering this protocol we believed we had found the mostimportant missing piece from the mobile industry. It has taken over six monthsto complete negotiations and exhaustive due diligence with patent lawyers. Weare delighted to have now purchased a new protocol that I believe to be one ofthe biggest breakthroughs in the mobile industry to date." "The potential of this breakthrough cannot be underestimated; the opportunitiesspun out during the investigative and patent due diligence process are extensiveand could deliver vital applications in many fields. Just one example of whatcould be achieved is by drawing comparison with SKY TV's gaming services wherethey have reported minimal fraud due to the authenticated method they have ofknowing the bill payer. 2safeguard provides the same level of security forgaming services on a mobile phone." "Once integrated within 2ergo's Multiserve Platform, 2safeguard will enable usto offer the most secure, fraud-proof system available today in mobilecommunications for secure payment and communication solutions within thebanking, gambling, m-commerce, and financial sectors, which to date have allstruggled to find a truly effective solution. We believe that with the new 2safeguard protocol several of the major concerns within the mobile and financialindustries will be solved." "All applications supported by 2ergo's Multiserve Platform will now be furtherenhanced and able to support an even greater variety of e-payment, e-purse andm-payment options." "We are initially targeting Government services, mobile networks, textmessaging aggregators, banks, credit card companies, gambling, e-purse and largeon/off line merchants plus security companies." "Something on this scale will require significant investment to develop andmarket worldwide and could take a number of years to fully exploit. We hope toachieve this by establishing the right partners, licensee's and channels tofully exploit 2safeguard worldwide. If this new protocol can assist us insecuring just a tiny percentage of the billions of the transactions completedeach month, then from 2007 2ergo could expect to develop even furthersignificant growth." Commenting on the deal, Adam Ripley, Director of Sure on Sight, said: "Having invented a secure mobile solution we researched companies around theworld that could best exploit its global potential. 2ergo came up on top asbeing best positioned to build, implement and market 2safeguard and I amdelighted that we have completed this sale with them." -ends- For further information, please contact: 2ergo 01706 221777Neale Graham, Joint Managing DirectorBarry Sharples, Joint Managing Director Tavistock Communications 020 7920 3150Christian Taylor-WilkinsonPaul Dulieu Notes to Editors: About 2ergo group plc2ergo group plc facilitates communication and interaction between companies andtheir staff or customers using Mobile Internet, SMS, MMS, Web and VoiceApplications. Headquartered in Lancashire, the Company listed on AIM on 11 March2004. About Sure on Sight LimitedThe inventors of 2safeguard have spent several years implementing secure systemsfor Banks and the Police Force. They established Sure on Sight for the solepurpose of exploiting the 2safeguard patent. This information is provided by RNS The company news service from the London Stock Exchange