Discretix Announces $20 Million Third Round Funding; Sequoia Capital Becomes Newest Discretix Investor

Additional Funds will Take Embedded Security Solutions Leader into New and Direct Opportunities with Mobile Content Providers

Las Vegas, NEVADA - 8 January, 2007 - Discretix, the leading provider of embedded security solutions for mobile devices and flash memory, today announced it has raised $20 million in third round financing. The round, in which all current Discretix investors participated, also included a major investment by Discretix’ newest investor - Silicon Valley venture fund giant Sequoia Capital. Total outside investment now amounts to $29.8 million.

The move is expected to further solidify Discretix' position as a world leader in content protection and embedded security solutions, creating an environment in which mobile applications and services can thrive. In addition, Discretix plans to use this new capital to aggressively pursue content protection solutions for the mobile content and enterprise markets.

"Participation in our third round of funding by Discretix' current investors demonstrates the support the company enjoys for its achievements to-date, as well as an endorsement for its future plans," said Gal Salomon, chief executive officer and founder of Discretix. "We welcome the new support for our business activities from Sequoia Capital, not only for the funds it provides but also as an inflection point for our initiatives in the mobile content space."

Sequoia Capital is one of the technology industry's most storied venture capital firms. It was the first investor of many well-known tech giants including Apple, Cisco, Google, Oracle, Yahoo! and YouTube, and maintains a diversified investment portfolio that reaches into virtually all segments of the high-tech field.

"Discretix is recognized as a global mobile security technology leader. The company is now entering a growth phase that puts it at the heart of one of the fastest-growing segments of the communications industry," said Randy L. Ditzler partner with Sequoia Capital. "We believe Discretix' solutions will be of great value to content providers, as they are today to semiconductor vendors, handset manufacturers and software application providers."

Founded in 2000, Discretix offers an array of hardware-, middleware- and software-based security technologies that are incorporated as an integral part of mobile handheld and cellular devices as well as flash memory. Discretix solutions ensure digital rights management, device management, secure protocols and e-Commerce at the highest levels of protection. In 2004 and 2005, Discretix was ranked the number one provider of encryption semiconductor IP by Gartner. Current venture investors in Discretix include Accel Partners, Pitango Venture Capital, Genesis Partners, SFK, Poalim Ventures, and Eurocom Group.

"Discretix has amassed an enviable record of success in penetrating next-generation hardware designs in all segments of the wireless and flash memory industries, in the U.S. Japan, Asia and Europe," said Kaj-Erik Relander, general partner, Accel Partners."We believe the company is well positioned for continued expansion up the content deployment chain, wherever leading-edge data security and content protection is required."

About Discretix

Discretix is a leading provider of embedded security technology for mobile devices and flash memory storage. Discretix technology, which incorporates both hardware and software components, enables security to be incorporated into products at the chipset level, making it transparent to the end-user while protecting sensitive information from malicious attacks, viruses, fraud, and theft. Discretix' solutions are deployed in a wide array of devices and mobile systems to enhance security, reliability, and user experience. Discretix, a privately-owned company, serves the needs of some of the world’s best-known semiconductor and device manufacturers and was ranked by Gartner as the embedded security market leader for the second year in a row in 2005. For more information, please visit www.discretix.com.