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For Immediate Release

Theft or Loss of Confidential Information: A Grave Danger to Businesses,
Employees and Customers

Adopting New Business Policies and Procedures Help Minimize the Risk

Itasca, Ill. (Sept. 18, 2007) – Every day, corporations deal with confidential information containing everything from company trade secrets and marketing research, to social security numbers and addresses of employees, customers and vendors. Recent news headlines about dumpster diving and stolen laptops, however, have shown that the release of any kind of proprietary information can have disastrous consequences for businesses.

In the last two years alone, 85 percent of businesses have experienced a data breach involving the loss or theft of customer, consumer or employee data⁽¹⁾. In that same period of time, more than 150 million records have been exposed⁽²⁾. The financial implications stemming from the theft of proprietary information in the workplace are startling, as the crime cost U.S. businesses and consumers $56.6 billion in 2005⁽³⁾. On average, data losses cost companies $182 per compromised record in 2006, an increase of 31 percent from 2005⁽⁴⁾.

“With an ongoing exchange of paper in offices, the workplace is an increasingly desirable target for identity thieves,” said Ira Winkler, national security consultant and author of best-selling “Through the Eyes of the Enemy” and the recent “Zen and the Art of Information Security.” “Small businesses are particularly at risk because they don't always have the resources to protect their information. Protecting your data is protecting your business. No matter how big or small the business, you must ensure that the proper policies are in place to protect sensitive data.”

Limiting Risk and Liability:
Financial implications are only a portion of the consequences, as businesses can now face penalties, such as fines and lawsuits, if they neglect to properly store and destroy sensitive information. Federal laws like the Fair and Accurate Credit Transactions Act (FACTA), Health Insurance Portability and Accountability Act (HIPAA) and Gramm-Leach-Bliley Act (GLB) require businesses of all sizes to properly manage and dispose of consumer and patient information. In some states, lawmakers have begun to hold employers responsible for protecting employees’ information, making it vital for businesses to comply with these guidelines.

A first step toward safeguarding corporate data is to shred anything that contains sensitive information. While some companies utilize off-site shredding services to destroy information, on-site shredding offers the convenience and a greater sense of security in knowing that information is destroyed immediately. A deskside shredder is ideal for business professionals that regularly handle sensitive information including legal, accounting, human resource or finance personnel. Commercial shredders are best for shared use spaces including shared printing or copying areas where large volumes of sensitive information are created.

Businesses should look for personal or commercial shredders that destroy CDs/DVDs, can handle large volumes of paper and feature cross-cut versus strip-cut capabilities, ensuring all private information is destroyed into small, unidentifiable pieces.

“It is essential that businesses incorporate shredders into their office environment and proactively encourage employees to shred all of their confidential information,” said Nancy Heaton, senior global marketing manager for Fellowes, Inc., the leading shredder manufacturer. “Shredding with a cross-cut machine on-site is one of the easiest ways to guarantee that private information can’t get in the hands of identity thieves.”

Shredding is just one of many ways to safeguard sensitive information. Businesses should consider implementing the following precautions to help minimize their risk of identity theft:

Develop office guidelines for all employees that outlines the proper procedures for protecting sensitive information.
Keep all sensitive information and files locked away. Restrict access to those who need it and closely watch your files.
Work with your company’s IT department to limit the access employees have to electronic files. All files should be password protected and encrypted.
Ensure all company computers have the most up-to-date anti-virus, anti-spyware and firewall software. Also check to make sure wireless networks are protected with the proper security settings.
Limit the use of social security numbers in the workplace. Don’t use social security numbers on items such as employee identification badges, time cards or paychecks.
Conduct thorough background checks on potential employees. It is not uncommon for confidential information to be stolen from within.
Use a locked mailbox to send mail that contains personal or company checks, social security numbers or account information.
At the end of each work day, all employees should log off their computers and lock their workstations or office doors. All confidential documents should be filed away rather than left at one’s desk.
When traveling for business, employees should pay attention to their surroundings, especially when using a cell phone, laptop or BlackBerry. For those who frequently utilize hotel business centers, check to see if they have shredders on-site and never throw away confidential information.

About Fellowes
Headquartered in Itasca, Ill., Fellowes, Inc. offers an impressive range of products to equip the workspace, including paper shredders, binders and laminators, desktop accessories and record storage solutions. Fellowes, Inc. owns and operates subsidiaries in Canada, United Kingdom, Benelux, France, Germany, Italy, Poland, Spain, Singapore, Japan, Korea, China and Australia, the company employs more than 2,700 people throughout the world and expects global sales in excess of $700 million this year. For more information, visit www.fellowes.com.

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Sources:

1. Ponemon Institute: The Business Impact of Data Breach Survey, May 2007

2. Ponemon Institute: Database Security Study, June 2007

3. Javelin Strategy & Research: Identity Fraud Survey Report, January 2006

4. Ponemon Institute: 2006 Annual Study: Cost of a Data Breach

For more information, contact:
Lori Geller
(312) 729-4290
lgeller@golinharris.com

Workplace Identity Theft Prevention Tips@

Shred ALL proprietary information with a cross-cut shredder. Deskside shredders are ideal for business professionals that regularly handle sensitive information including legal, accounting, human resource or finance personnel. Commercial shredders are best for shared use spaces including shared printing or copying areas where large volumes of sensitive information are created.

Develop office guidelines for all employees that outlines the proper procedures for protecting sensitive information.

Keep all sensitive information and files locked away. Restrict access to those who need it and closely watch your files.

Work with your company’s IT department to limit the access employees have to electronic files. All files should be password protected and encrypted.

Ensure all company computers have the most up-to-date anti-virus, anti-spyware and firewall software. Also check to make sure wireless networks are protected with the proper security settings.

Limit the use of social security numbers in the workplace. Don’t use social security numbers on items such as employee identification badges, time cards or paychecks.

Conduct thorough background checks on potential employees. It is not uncommon for confidential information to be stolen from within.

Use a locked mailbox to send mail that contains personal or company checks, social security numbers or account information.

At the end of each work day, all employees should log off their computers and lock their workstations or office doors. All confidential documents should be filed away rather than left at one’s desk.

When traveling for business, employees should pay attention to their surroundings, especially when using a cell phone, laptop or BlackBerry. For those who frequently utilize hotel business centers, check to see if they have shredders on-site and never throw away confidential information.

###

For more information, contact:
Lori Geller
(312) 729-4290
lgeller@golinharris.com

Workplace Identity Theft Statistics@

Costs

Identity fraud cost U.S. businesses and consumers $56.6 billion in 2005 ⁽⁴⁾
Data losses cost companies an average of $182 per compromised record, an increase of 31 percent from 2005 ($138 per record) ⁽¹⁾
On average, notification costs for companies is more than $660,0000 ⁽¹⁾

---------- As a result of a data breach, lost business cost companies an average of more than
------------ $2.5 million ⁽¹⁾

Seventy percent of companies believe a major security breach could seriously damage their company's brand ⁽⁵⁾ (33 percent)

----------- One-third of companies said that a major security breach could potentially put their
------------- company out of business ⁽⁵⁾

A data breach that exposed personal information would cost companies an average of $268,000 to inform their customers, even if the data is never used ⁽⁵⁾

Cause and Effect

In 2006, there were in excess of 315 publicized breaches affecting nearly 20 million individuals ⁽²⁾

---------- In 2005, there were 158 incidents affecting more than 64.8 million people ⁽²⁾

More than 150 million data records have been exposed in the last two years ⁽⁸⁾
Eighty-five percent of businesses report they have experienced a data breach, involving the loss or theft of customer, consumer or employee data in the last two years ⁽³⁾
Seventy-seven percent of customers said they would stop shopping at stores that suffer data breaches ⁽⁷⁾

---------- Sixty-three percent of consumers see retailers as the least secure when it comes to

-------------protecting consumers' data ⁽⁷⁾

---------- Eighty-five percent of customers said they would reward companies who are

-------------perceived as security leaders with increased purchase ⁽⁷⁾

Of those organizations suffering a data loss, about three-fourths (74 percent) reported loss of customers ⁽³⁾

---------- Sixty percent said they faced potential litigation ⁽³⁾

---------- Thirty-three percent of companies faced potential fines ⁽³⁾

---------- Thirty-two percent saw a decline in their share value ⁽³⁾

Twenty-nine percent of data breaches occur in government/military agencies ⁽²⁾

---------- Twenty-eight percent occur in educational institutions ⁽²⁾

---------- Twenty-two percent occur in general business ⁽²⁾

---------- Thirteen percent occur in healthcare facilities or companies ⁽²⁾

---------- Eight percent of data breaches occur in banking/credit card/financial service

-------------companies⁽²⁾

Intellectual property poses the greatest risk to the core business, followed by business confidential information, customer and consumer data and employee data ⁽⁸⁾
Eighty-one percent of companies report that their organizations have experienced one or more lost or missing laptop computers containing sensitive or confidential business information in a 12-month period ⁽⁶⁾
Executives report that the following types of confidential business information can pose the greatest risk of exposure to their organization if lost or stolen

---------- Non-public financial documents (39 percent)

---------- Documents and spreadsheets (35 percent)

---------- Management or accounting reports (34 percent)⁽⁶⁾

Storage devices most likely to contain sensitive or confidential data are PDA's (60 percent) followed by laptops (59 percent) ⁽⁶⁾

How It Happens

More than 45 percent of data breaches involved a lost or stolen computer, PDA or memory stick ⁽¹⁾

----------- Nearly thirty-percent of all data breaches are from external sources, including

--------------outsourcers, consultants, business partners and contractors (29 percent) ⁽¹⁾

----------- Lost or stolen paper records and files account for thirteen-percent of data breaches ⁽¹⁾

Sources:

1. Ponemon Institute: 2006 Annual Study: Cost of a Data Breach

2. Identity Theft Resource Center : Breach List, June, 2007

3. Ponemon Institute: The Business Impact of Data Breach Survey, May 2007

4. Javelin Strategy & Research: Identity Fraud Survey Report, Jan., 2006

5. McAfee: Datagate Study, 2007

6. Ponemon Institute: Confidential Data at Risk Study, Aug. 2006

7. Javelin Strategy & Research: Data Breaches & Buyer Behavior Report, April 2007

8. Ponemon Institute: Database Security Study, June 2007

Ira Winkler Biography@

Ira Winkler is a certified information systems security professional (CISSP) and president of the Internet Security Advisors Group. He is considered one of the world’s most influential security professionals, and has been named a “Modern Day James Bond” by the media. He did this by performing corporate espionage simulations, where he physically and technically broke into some of the largest companies in the world to investigate crimes against them. He then reported back to them on how to cost effectively protect their information and computer infrastructure. Ira continues to perform these espionage simulations, as well as assists organizations in developing cost effective security programs. Ira also won the Hall of Fame award from the Information Systems Security Association, as well as several other prestigious industry awards.

Ira is the author of the riveting, entertaining, and educational books, “Zen and the Art of Information Security” and “Spies Among Us.” Ira has recently been elected vice president of the Information Systems Security Association.

Ira began his career at the National Security Agency, where he served as an intelligence and computer systems analyst. He moved on to support other U.S. and overseas government military and intelligence agencies. After leaving government service, he went on to serve as president of the Internet Security Advisors Group, chief security strategist at HP Consulting, and director of technology of the National Computer Security Association. He was also on the graduate and undergraduate faculties of Johns Hopkins University and the University of Maryland.

In addition to his more recent books, Ira is also the author of “Corporate Espionage” and
”Through the Eyes of the Enemy.” Both books address the threats that companies face protecting their information. He has also written more than 100 professional and trade articles and is a past columnist for ComputerWorld.com.

Ira has been featured and frequently appears on TV on every continent. Appearances include The Today Show, Good Morning America, CNN and ABC World News Tonight. He has also been featured in magazines and newspapers including Forbes, USA Today, Wall Street Journal, San Francisco Chronicle, Washington Post, Planet Internet, and Business 2.0.

Image Gallery@

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Company Fact Sheet@

Overview

Fellowes, Inc. is a global manufacturer and marketer of workspace products and solutions that enhance security, organization and productivity in today's workplace. Designed and manufactured to offer superior quality, usefulness and value, Fellowes' products range from business machines (paper shredders, binder machines and laminators) to records storage solutions to a full-line of technology accessories.

Founded in 1917 by Harry Fellowes and headquartered in Itasca, Illinois, Fellowes, Inc. employs more than 2,700 people throughout the world and has operations in 15 countries.

Headquarters
Fellowes, Inc.
1789 Norwood Avenue
Itasca, Illinois 60143-1095
630-893-1600

Subsidiaries and Affiliates

Canada
Germany
Poland
Australia
Japan
United Kingdom
Italy
Spain
Singapore
Korea
France
Netherlands
Russia
China

Product Lines:

Business Machines

Fellowes, Inc. is the global leader in paper shredder design and engineering, providing the highest quality personal and general office business shredders on the market. That's why they are known as the “World's Toughest Shredders.”^TM The company is notable for inventing the personal shredder. Fellowes also offers Binding and Laminating Machines and Supplies.

Records Storage

Bankers Box® records storage was Fellowes' first product line, and today it remains the dominant market leader. The Bankers Box brand provides unparalleled strength and durability to ensure trouble free storage. With over 85 years to optimize the product design and manufacturing process, some Bankers Box products can withstand up to 900 pounds of pressure. Businesses and households look to the Bankers Box brand of records storage products for strength they can count on.

Workspace Ergonomics and Organization

Making working more comfortable and organized is easy with Fellowes' line of desktop and cubicle accessories. These product lines offer the benefits of good ergonomic principles and space saving designs.

Computer Accessories

Fellowes, Inc. offers a comprehensive selection of computer accessories, including ergonomic desk accessories, input devices, space organization products, power accessories, carrying cases, mouse pads and more. Fellowes is also unique for being the only supplier of computer accessories that feature Microban® anti-microbial product protection.

Mobile Accessories

Fellowes is right there with on-the-go consumers. As a Body Glove® licensee, the company meets consumers' needs with a line-up of portable technology accessories including mobile phone cases, hands-free headsets and digital camera and entertainment cases.

Media Labeling

Fellowes' innovative lineup of media labeling products provides easy solutions for home, small office and business users.

Media Storage

As a leader in CD/DVD storage, Fellowes offers an extensive array of home and office media storage solutions, including media towers, portable wallets and desktop models.

Executive Management
James Fellowes - Chairman and Chief Executive Officer
Joseph Koch - Executive Vice President and Chief Operating Officer
Peter Fellowes – President of Fellowes Europe
James Lewis – Executive Vice President and Chief Supply Chain Officer
Robert Compagno – President of Global Sales
Lyn Bulman – Executive Vice President of Global Human Resources

Websites

Press Contacts
Maureen Moore
Director of Corporate Marketing
Fellowes, Inc.
Phone: 630-893-1600
Fax: 630-893-1683
mmoore@fellowes.com

Lauren Sloan
Golin Harris
111 E. Wacker Drive
Chicago , Illinois 60601-4306
Phone: 312-729-4226
Fax: 312-729-4015
lsloan@golinharris.com

Company Timeline
1917- The Bankers Box® Company is founded by Harry Fellowes
1933- Company offers “exclusive dealerships” to office products dealers
1934 & 1938- A second generation, Harry's sons Folger and John, join the business
1957- Company moves manufacturing facility from Chicago to Franklin Park, Illinois
1960- A second manufacturing location is opened in Anaheim, California
1969- James Fellowes, the third generation, joins the company
1972- Overseas expansion begins with an operation in the United Kingdom
1978- Corporate headquarters moves to current location in Itasca, Illinois
1982- Licensing agreement entered with German compnay to make commercial shredders
1983- James Fellowes is named President, and the company name is changed from Bankers------------- Box to Fellowes Manufacturing to reflect an expanding product line
1989- Peter Fellowes joins the firm
1990- A new invention, the personal shredder, is unveilded
1998- Through an acquistition, Fellowes starts offering binding and laminating products
2001- Fellowes enters the mobile accessories business by becoming a Body Glove® license
2001- John Fellowes II joins the company becoming the fourth generation to work in the family ----------business
2005- Introduction of SafeSense technology
2006- Fellowes enters into a joint venture with Jinsen China