CERTICOM REPORTS REVENUE GROWTH FOR SECOND QUARTER AND FIRST HALF OF FISCAL 2007

Global Leadership in Securing Mobile Push Email Applications Driving Growth

Highlights:

Nokia licensed Certicom’s cryptographic technology in multi-year contract as foundation for security in Intellisync Mobile Suite and other messaging and file synchronization products
Visto Corporation licensed Certicom’s technology and ECC cryptography for mobile push email and messaging applications in multi-year agreement
A global manufacturer licensed Certicom’s security technology in multi-year, multi-million dollar agreement

Mississauga, Ontario (December 6, 2006) – Certicom Corp. (TSX: CIC) (the “Company”) today reported results for the second quarter and six months ended October 31, 2006. All figures are in U.S. dollars and in accordance with Canadian Generally Accepted Accounting Principles (GAAP) except where otherwise noted.

Revenue for the second quarter was $5.9 million compared to $2.2 million in the prior year and $4.7 million in the first quarter of fiscal 2007. For the first six months of fiscal 2007, revenue was $10.6 million, compared to $5.7 million in the first six months of fiscal 2006.

“While our second quarter results were positively skewed by a prepaid royalty contract, our core growth was positive and consistent with our expectations,” said Ian McKinnon, President and Chief Executive Officer. “Our six month results were also in line with Certicom’s business plan and we are on track to achieve our goals for fiscal 2007.”

“We are also pleased with our continued progress this quarter in announcing a number of important royalty-bearing, recurring revenue contracts with large, multinational companies. The Nokia and Visto contracts, combined with our existing relationships with RIM and others, are clear indications of Certicom’s growing global market leadership in securing mobile push email applications,” continued Mr. McKinnon.

The increase in second quarter revenue was primarily attributable to an upfront licensing fee of $3.0 million for prepaid royalties pertaining to a multi-year, multi-million dollar licensing agreement with a global manufacturer announced October 23, 2006. This contract is expected to yield additional royalties in the future once the prepaid number of devices has been deployed. Due to competitive reasons, the customer has requested that their identity not be disclosed. Continued growth in contract wins with large multinationals and increasing royalty revenue also contributed to the second quarter revenue growth.

Second Quarter Financial Review

Operating expenses¹ for the quarter were $4.6 million, compared to $3.5 million in the comparable quarter in the prior year. The increase in year-over-year operating expenses was due to the strengthening Canadian dollar, higher sales commissions related to increased revenue and a planned increase in product development resources. As reported in the first quarter of fiscal 2007, Certicom is reporting operating expenses excluding cost of revenues, depreciation and amortization and stock-based compensation. The company posted net earnings on a GAAP basis of $0.6 million or $0.01 per basic and diluted share for the quarter, compared to a net loss of $2.3 million, or $0.06 per basic and diluted share in fiscal 2006.

Certicom had $44.4 million in cash² at quarter-end, compared to $21.8 million at the end of the first quarter. The increase reflects the net proceeds of the $22.2 million equity offering that concluded in early August. Excluding the impact of the offering, the Company generated $0.4 million in cash. The cash position was $22.5 million at October 31, 2005. The Company has no debt.

“Certicom’s increased cash position, which is strengthened by our debt-free balance sheet, puts us in an excellent position to drive growth as we continue to execute our five year strategic growth plan,” said Hervé Séguin, Chief Financial Officer.

Six Month Financial Review

Operating expenses¹ for the first six months of fiscal 2007 were $9.0 compared to operating expenses of $7.0 million for the same period last year. The year-over-year increase was due to the same factors mentioned above in the second quarter review.

For the first six months of fiscal 2007, the Company posted a net loss on a GAAP basis of $0.7 million or $0.02 per basic and diluted share, compared to $3.1 million, or $0.08 per basic and diluted share for the same period last year.

Second Quarter Operational Highlights

Certicom completed bought deal raising gross proceeds of CDN$26.2 million from sale of 4,000,000 common shares at CDN$6.55 per share, yielding net proceeds of USD$22.2 million
Nokia licensed Certicom’s cryptographic technology in multi-year contract as foundation for security in Intellisync Mobile Suite and other messaging and file synchronization products
Visto Corporation licensed Certicom’s technology and ECC cryptography for mobile push email and messaging applications
A global manufacturer licensed Certicom’s security technology in multi-year, multi-million dollar agreement
Certicom’s third annual ECC Conference held November 14 to 16, 2006 in Toronto was the most successful to date. More than 150 attendees gathered to hear distinguished speakers including Dr. John Manferdelli of Microsoft Corp, Dr. Michael Epstein of Philips, Dr. Alexander Herrigel of Swiss National Bank and Dr. Frank Quick of Qualcomm

Announcements Subsequent to Quarter End

Certicom announced a technical and marketing alliance with Texas Instruments to launch ‘Certicom Security for RFID Product Authentication’, a solution that protects high-value products against counterfeiting and ensures privacy
General Dynamics licensed Certicom Security Builder® GSE™ and Security Builder® Crypto™ for use on the U.S. Army Land Warrior Program

Outlook

Our revenue for the six months just ended is consistent with the financial targets contained in Certicom’s fiscal 2007 business plan, and it is generally indicative of our expectations for the remainder of the year. Our outlook for the current year continues to be in line with our five year strategic growth plan.

Operating expenses¹ for the third quarter of fiscal 2007, excluding cost of revenues, depreciation and amortization and stock-based compensation, are expected to range from $4.7 to $5.1 million.

Conference Call

Management will host a conference call to discuss Certicom’s performance for the second quarter and six months of the 2007 fiscal year at 10 a.m. ET (7 a.m. PT) on Thursday, December 7, 2006. The call may be accessed at 416-644-3415 or 1-800-814-4890. It will also be webcast with supporting slides and subsequently archived at http://www.certicom.com. To listen to the webcast, participants will require Windows Media Player™ which can be downloaded via Certicom’s website prior to the event. A taped rebroadcast will be available from 12 p.m. (ET) on December 7 until 12 a.m. (ET) on December 14, 2006. To access the archive, please call 416-640-1917 or 1-877-289-8525 and enter the passcode 21209176#.

Consolidated Balance Sheets

Consolidated Statements Of Operations And Retained Earnings

Condensed Consolidated Statements Of Cash Flows

About Certicom
Certicom protects the value of your content, applications and devices with government-approved security. Adopted by the National Security Agency (NSA) for classified and sensitive but unclassified government communications, Elliptic Curve Cryptography (ECC) provides the most security per bit of any known public-key scheme. As the undisputed leader in ECC, Certicom security offerings are currently licensed to more than 300 customers including General Dynamics, Motorola, Oracle, Research In Motion and Unisys. Founded in 1985, Certicom’s corporate offices are in Mississauga, ON, Canada with worldwide sales headquarters in Reston, VA and offices in the US, Canada and Europe. Visit www.certicom.com.

FOOTNOTES:
Operating expenses and cash as defined below are non-GAAP earnings measures that do not have standardized measures prescribed by GAAP, and therefore may not be comparable to similar measures presented by publicly traded companies.

This news release contains references to operating expenses. Certicom defines operating expenses as total operating expenses excluding cost of revenues, depreciation and amortization and stock-based compensation. It also excludes interest income, other income (expense) and withholding tax expense.
This news release contains references to cash, which is defined as cash and cash equivalents, short term and long term marketable securities and restricted cash.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Factors which could cause actual results or events to differ materially from current expectations include, among other things: the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits; the ability of the Company to develop, promote and protect its proprietary technology security breaches or defects in the Company’s products; competitive conditions in the businesses in which the Company participates; changes in consumer spending; the outcome of legal proceedings as they arise; general economic conditions and normal business uncertainty; consolidation in the Company’s industry and by its customers; customer preferences towards product offerings; the risk that customers may cancel their contracts with the Company; reliance on a limited number of customers; demand for ECC-based technology; performance of the Company’s management team and the Company’s ability to attract and retain skilled employees; operating the Company’s business profitably; fluctuations in revenue and foreign currency exchange rates; interest rate fluctuations and other changes in borrowing costs; the ability to develop and maintain strategic relationships; and other factors identified under the heading “Risk Factors” in the Company’s annual information form dated July 26, 2006 and filed on SEDAR at www.sedar.com.

While the Company believes that its forecasts and assumptions are reasonable, results or events predicted in this forward-looking information may differ materially from actual results or events.