The new software features the ability to enforce encryption policies on removable storage media, such as USB thumbs and iPods, as well as support for RSA Security Inc’s SecurID two-factor authentication tokens.

Credant’s mission is to create software for tackling the stolen and lost laptop problem, an increasingly visible issue in the US since the passage of the California law SB 1386, which compels companies to disclose when sensitive customer data is compromised.

The system also supports handheld devices running the Windows Mobile and Symbian operating systems, the company said.

The latest version of Mobile Guardian also permits a remote kill option. Administrators can set a policy to wipe data from discs when the device has been stolen. It can be sent down as a policy over the network, or as a set of preset rules.

Credant executives also spelled out the company’s product road-map in a recent interview. Phase one encompasses today’s updates, while phase two is set to roll out at some time in the next three to four months.

This next update will see the software tackle the problem of sensitive data being stored on uncontrolled devices, such as those owned by contractors or partners, Credant said.

A third phase will extend it still further, to remote workers, using a premises-based hosted model, where data can be secured wherever it resides.

When Windows Vista is released later this year, with it’s built-in BitLocker drive encryption technology, Credant will continue to sell its software as a cross-platform management overlay, executives said.