Telefonica to Launch Encrypted Voice Service on Smartphones in Partnership With Cellcrypt in Latin America

MIAMI, FL--(Marketwire - May 19, 2011) - Cellcrypt (www.cellcrypt.com), the leading provider of encrypted voice calling on mobile phones, today announced that it reached an agreement with Telefónica, one of the largest telecom operators in the world, to include Cellcrypt Mobile™ in their product and service portfolio across the 13 countries in Latin America and the Caribbean where Telefónica operates.

Cellcrypt Mobile is used by governments and corporations globally and is a downloadable application for off-the-shelf smartphones that provides end-to-end encryption of voice calls over cellular (2G, 3G), Wi-Fi and satellite networks. Cellcrypt Mobile is certified to U.S. government National Institute of Standards and Technology FIPS 140-2 security standard and has been awarded the CESG Claims Tested Mark (CCTM) from the U.K. government's information assurance authority.

The announcement is part of an extensive partnership agreement that allows Telefónica to promote, sell and support Cellcrypt Mobile and associated technologies within certain countries.

As Governments and Corporations increasingly use cell phones for operational and administrative communications they have an increased need for government-grade protection from increasingly sophisticated unauthorized interception threats. This protection is required end-to-end so as to assure users that they control the security of calls along all points of the call path between caller and recipient, and have adequately mitigated risks in compliance with internal security policies.

Cellcrypt's software provides end-to-end voice call encryption on smartphones making secure calling with high voice quality and low latency as easy as a normal cell phone call. Utilizing the IP data channel, secure calls can be made using both Telefónica's cellular and Wi-Fi® networks from the same handset. As a software-only solution, deployment to personnel can take as little as 10 minutes anywhere in the world. Only Internet access is required.

"We are delighted to be able to offer our government and corporate customers an end-to-end encrypted voice calling capability with strong, accredited cryptography and requiring no physical hardware. This is important as our customers have a need for rapid and flexible deployment and redeployment," said Raul Fraile, Deputy Director Business Development, Applications and Partner Relationships of Telefónica Latinoamérica, "and the ability to have interoperability between several different brands of popular smartphones is also very important to more broadly meet the diverse needs of our customers."

"Cell phones are the most convenient, and often only, option for many operational and administrative communications across governments and business -- just as they are in our personal lives," said Richard Greco, CEO of Cellcrypt. "One problem with cell phone eavesdropping is that you rarely know it has happened. Rather than hope that the inevitable sensitive and confidential conversations that occur on cell phones are not compromised, this solution means that Telefónica customers can depend on their cell phones to be a secure and exploit their mobility, convenience, ease-of-use and interoperability as an important communications asset."

About Cellcrypt
Cellcrypt is the leading provider of voice call encryption on off-the-shelf mobile phones -- including BlackBerry^® and Nokia smartphones -- that enables secure calling to mobile phones and office phone systems (PBXs) to allow landline calling as well as access to standard PBX features such as voicemail, conference calling and calling out to the public phone network.

The Cellcrypt product is validated to CESG Claims Test Mark in the UK, and to FIPS 140-2 standard, approved by the US National Institute of Standards & Technology (NIST), and operates over data-enabled networks including 2G (GPRS/EDGE), 3G (HSPA, CDMA/EV-DO) and Wi-Fi^®. Cellcrypt is a BlackBerry^® Alliance Partner, Inmarsat Connect Partner, and has AT&T Mobility Data Certification.

Today, Cellcrypt solutions are used routinely by governments, enterprises and senior-level executives worldwide. Cellcrypt is a privately-held, venture-backed company with offices in the USA, UK, Asia Pacific and Middle East.

For more information please visit: www.cellcrypt.com.

About Telefónica
Telefónica is one of the largest telecommunications companies in the world in terms of number of accesses and market capitalization. Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both. The company has a customer base of more than 290 million customers around the world. Telefónica has a strong presence in Europe and Latin America, where the company focuses an important part of its growth strategy. Telefónica is a 100% listed company, with more than 1.5 million direct shareholders.

For more information please visit: www.telefonica.com.