A common situation in organizations is to make calendars public, so that employees can see other employee’s availability, and collaborate better.  Users may also delegate rights to other users to view their messages, tasks, and contacts.  In these situations, people may rely on marking sensitive items private to hide them from other users.  In Outlook or OWA, other users will see a placeholder for the private items, but won’t be able to view any of the details.  However, you should keep in mind that this privacy is only a feature of the client application–Outlook or OWA–and is not inherent to Exchange.  Exchange itself does not support any kind of item-level security or privacy, and only has a field called “sensitivity” which is used by Outlook and OWA.  The client applications look at that field to determine whether to display the item.
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