Open letter to customers and prospects of Utimaco Safeware AG

5 August 2008

Dear customer or prospect of Utimaco Safeware AG,

As you are aware, Sophos Plc has announced its intent to acquire Utimaco Safeware AG with an offer to shareholders that is expected to close in October of this year. I am writing to reassure you and to clarify how this may affect the products and services of Utimaco should we be successful.

Firstly, we are acquiring Utimaco because of their engineering excellence, customer service and vision for the future of encryption and information security. There is practically no overlap in product range, and we intend that Utimaco will form the core of a business unit within Sophos with a mission to lead in information security and further build our worldwide growth. We aim to retain and build upon the current engineering and product groups, and to support ambitious product investment as well as continuity in account management and service.

Both Utimaco and Sophos have full and innovative roadmaps for their enterprise scale products addressing information security and endpoint protection respectively, based on successful understanding of their customer’s needs. We do not anticipate either business unit will decide to significantly adjust current developments – both remain committed to their current market requirements and product plans.

In the medium and longer term, the combination of companies offers both teams the opportunity to innovate. Strategically, our future direction envisages the integration of  information control and security compliance with anti-malware infrastructure to make security more manageable, and in a modular fashion to suit adoption patterns. However, this kind of forward thinking needs to be matched with phased plans that are rooted in a pragmatic view of customer’s priorities and real requirements at any given time.

The other exciting synergy will be in exploring how to develop the evolving market for Data Leakage Protection (DLP) or Content Monitoring and Filtering (CMF), an area where the companies have complementary assets and expertise.

We are very enthusiastic about the excellence of Utimaco, and the degree of fit with Sophos, and look forward to the opportunity to enhance your experience rather than to detract from it in any way. I and my team are always available to address customer concerns, and over time we hope to know you well.

Yours sincerely,

Steve Munford
Chief Executive Officer
Sophos Plc