Bug Labs and Pitney Bowes Announce First Modular, Mobile Device Development Platform with Hardware-level Security Protection

BUGsecure offers enterprises a flexible, trusted platform for secure wireless device innovation

NEW YORK, March 14, 2011 - Bug Labs, an open source hardware and software provider that gives companies the tools and support needed to prototype, pilot and produce innovative networked devices with ease, and Pitney Bowes Inc. (NYSE: PBI) today announced the industry’s first modular, mobile device development platform incorporating hardware-level security and security life-cycle management services. As a new addition to Bug Lab’s flagship open source device prototyping platform, BUGsecure offers enterprises a flexible, trusted platform with the highest level of data protection and encryption available. Current devices on the market rely on software security, making them more vulnerable to breaches. BUGsecure provides a deeper level of security by fully protecting the device’s hardware and operating system, not just its application software.

Enterprises today are looking to capitalize on the growing demand for innovative machine-to-machine (M2M) wireless devices, but are also under pressure to produce new devices that are safeguarded from potential holes that current mobile security solutions cannot fill. In addition, the security of wireless device data is critical to help ensure it cannot be manipulated and modified, which can result in risk exposure and a damaging loss of revenue for enterprises. Bug Labs and Pitney Bowes developed BUGsecure to empower enterprises to help eliminate these common security risks and develop new devices they can trust will protect sensitive data.

Providing a level of security that is currently unavailable in some popular mobile and wireless devices, BUGsecure combines the power and functionality of the Bug Labs BUGbase 2.0 with an embedded tamper-responding security chip from Pitney Bowes which provides cryptographic processing, a secure time source, transaction management, remote security lifecycle management, and third party server validation. It is also compatible with 3G and 4G mobile development platforms, as well as all standard Bug System modules to further lower the entry point for enterprises looking to bring custom, secure devices to market. Combined, this functionality makes BUGsecure a platform that can be trusted for developing devices running applications that require a high-level of assurance, such as those in the financial, pharmaceutical and metering industries.

“Until now, enterprises have been reliant on software-based security measures for their applications. Since these measures do not execute within a trusted hardware environment, system security can be compromised by malicious programs, rogue code or even user actions. For enterprises operating in highly regulated industries, this low-level of security is not only a concern, but can be devastating for their businesses if information is accessible and altered externally,” said Peter Semmelhack, founder and chief executive officer, Bug Labs. “BUGsecure provides enterprise hardware developers with the freedom to not only develop new, custom wireless devices quickly and affordably, but also the trust needed to ensure that critical data is protected. Enabling innovation is at the heart of our business and our latest venture with Pitney Bowes aims to inspire that development philosophy to take hold in industries that have been hesitant about proprietary device development to date.”

“Pitney Bowes has been providing organizations with technology and systems to help protect data and funds for more than 90 years,” said Joseph Timko, executive vice president and chief strategy and innovation officer, Pitney Bowes. “By teaming up with Bug Labs, we can now offer device development platforms with the same security technology that has been used in Pitney Bowes mailing systems to secure funds for decades. With our technology, organizations can trust that their highly sensitive data and applications are secure, with minimal exposure to fraud and liability.”

Pitney Bowes holds thousands of patents worldwide in encryption, cellular-phone payment, shipping, laser printing, and mail production and processing. The company’s Postal Security Device (PSD) uses the latest technology approved by the United States Postal Service® to secure funds. This technology eliminates the need to perform physical inspections of mailing systems. The PSD contains the funds and performs all calculations necessary to print meter stamps that comply with current USPS standards.

The development of BUGsecure is a direct result of the strategic partnership between Bug Labs and Pitney Bowes, which was formed out of the companies’ common goal to help enterprises bring new, innovative devices to market quickly and affordably.

To learn more about Bug Labs, please visit www.buglabs.net. To learn more about Pitney Bowes, please visit www.pb.com.

About Bug Labs

Bug Labs provides products and services that allow businesses to prototype, pilot and produce innovative networked devices quickly, easily and affordably.

Bug Labs is a sought-after innovation partner for Fortune 500 enterprises looking to expedite their internal product development programs in vertical markets including healthcare, machine-to-machine (M2M), telematics, and home automation. Bug Labs’ long list of partners includes leading-edge systems integrators, network service providers, and hardware suppliers and distributors, providing enterprise clients an immediate support system to make their product innovation a reality.

The company was founded in 2006 and is headquartered in New York City. For more information about Bug Labs, please visit www.buglabs.net.

About Pitney Bowes

Delivering more than 90 years of innovation, Pitney Bowes provides software, hardware and services that integrate physical and digital communications channels. Long known for making its customers more productive, Pitney Bowes is increasingly helping other companies grow their business through advanced customer communications management. Pitney Bowes is a $5.4 billion company and employs more than 30,000 worldwide. Pitney Bowes: Every connection is a new opportunity™. www.pb.com

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