8e6 Technologies Completes 2005 with Record Growth, Strong Customer Acquisition, Global Expansion and Continued Technology Innovation; Company Exceeds 4 Million Licenses and Renews 95 Percent of Customers.

ORANGE, Calif. -- 8e6 Technologies, a security company dedicated to Internet filtering and reporting, today announced record growth in 2005 marked by substantial increases over 2004, a striking 95 percent customer renewal rate, strong new customer acquisition, the opening of two offices in China and the release of new hardware solutions for organizations of all sizes. In addition to these achievements, 8e6 Technologies has received strong customer endorsements and third-party accolades that further solidify its leading position in the Internet filtering and reporting market.

During 2005, 8e6 Technologies continued to see growing demand for its Internet filtering and reporting technologies, as evidenced by the following key financial and operational highlights:

--Significant year-end momentum: Third quarter 2005 billings outpaced third quarter 2004 by 28 percent; fourth quarter 2005 outpaced fourth quarter 2004 by 25.4 percent, making it the strongest quarter in the company's history. December 2005 finished as the strongest single month since the company's inception.

--Exceptional customer loyalty: Customer renewals surged to 95 percent up from 72 percent, greatly surpassing the industry average.

--Strong customer base: Strong enterprise customer acquisition throughout the year, including BEA Systems and U-Haul, bringing the installed base to nearly 1,100 customers with more than 4.3 million seats under subscription.

--Global expansion: New offices opened in Taipei, Taiwan, and Beijing, China, enabling 8e6 to better serve the Chinese market, which already accounts for the second largest number of Internet users worldwide.

"We are proud of our success in 2005 and the momentum and market traction we have achieved," says Paul Myer, president and COO of 8e6 Technologies. "8e6's strategy has been to listen to our customers, fund ongoing R&D efforts, and continue to deliver leading products that keep pace with the world and the ever-increasing threats that face us today. We look forward to continuing this level of growth in 2006."

Technology Innovation

8e6 Technologies remained true to its heritage of technical innovation and product excellence with the launch of two new hardware platforms in 2005, extending its market reach with easy-to-use solutions for small to very large organizations.

--R3000IR Internet Filter is a one-box appliance that offers integrated filtering and reporting for organizations with up to 1,500 users. R3000IR features real-time Internet probes; filters URLs, spyware, instant messaging, and peer-to-peer; and generates detailed customizable Web usage reports.

--R3000S Internet Filter is a stand-alone server appliance with SSL (secure sockets layer) accelerator capability that enables the authentication of very large numbers of users without degrading performance of the largest networks. R3000S is a scalable, high-speed Internet filtering solution that supports up to 30,000 users with a single appliance.

In addition to these new platforms, 8e6 Technologies released four product upgrades in 2005. A key enhancement includes the "X-Strikes" feature that allows administrators to set the criteria for blocking access to "unacceptable" Internet sites and locking-out employees from accessing the Internet after initiating a specified number of attempts to restricted sites. Also noteworthy is the Google and Yahoo! forced SafeSearch mode, which enables companies to block Internet access to inappropriate Internet content within the Google and Yahoo! search engines by forcing SafeSearch mode to be "on" for all searches, including images. Finally, to keep pace with customer expectations, 8e6 Technologies continues to build out its URL library, which now surpasses 90 categories of content.

Thought Leadership

In 2005, 8e6 Technologies joined the Anti-Phishing Working Group (APWG), an industry association focused on eliminating the identity theft and fraud that result from the growing problem of phishing and email spoofing. The organization provides a forum to discuss phishing issues, trials and evaluations of potential technology solutions, and access to a centralized repository of phishing attacks.

Customer Focus

Customers are the lifeblood of any company, and 8e6 Technologies' product innovation is driven by customers and their needs. During 2005, 8e6 Technologies held two customer conferences, one with enterprise customers and the other with education customers. Each two-and-a-half-day event allowed 8e6 Technologies executives to meet with up to 20 customers, incorporate their feedback into the product roadmap and learn how to better meet their needs. It is this level of commitment that results in 8e6 Technologies securing an amazing 95 percent customer renewal rate.

Third-Party Accolades

8e6 Technologies R3000MSA Internet Filter was awarded the 2005 Legacy Award from Technology & Learning magazine, the number one publication in the K-12 educational technology market. As part of its annual Awards of Excellence, this award category honors products that have stood the test of time and have evolved with the changing technology to continue to offer the highest quality experiences for educators and students.

About 8e6 Technologies

8e6 Technologies is a security company dedicated to Internet filtering and reporting. We are the only Web filtering company that uses a unique "pass-by technology" on a highly scalable appliance. Our standalone reporting appliance is easy to use and provides extremely detailed information, faster than any other product on the market. 8e6 helps protect its customers from all internal threats including spyware, malware, and Internet abuse leading to data loss and liability-while preventing bandwidth misuse. By preventing improper use of network resources and employee time, 8e6 also increases productivity and ensures regulatory compliance. Our standalone security solution achieves a dramatic reduction in the cost of hardware, subscriptions, maintenance, and support, and produces a substantially lower total cost of ownership. A Web filtering pioneer since 1995, the company maintains headquarters in Orange, California, with offices in Taipei and Beijing, as well as a network of channel partners worldwide. For more information, please call 888.786.7999 or visit www.8e6.com.