8e6 Technologies Ends 2006 with Record Financial Growth and Expanded Product Line.

Internet Filtering and Reporting Leader Delivers Technology Innovation and Channel Leadership in Education and the Enterprise

ORANGE, Calif. -- 8e6 Technologies, a security company dedicated to Internet filtering and reporting, today announced record annual growth for the fiscal 2006 year, marked by a market-leading 29 percent increase in bookings from 2005 and a substantial increase in new customer growth. In addition to these achievements, 8e6 Technologies increased their product marketing and engineering teams and expanded their product line designed to manage and monitor users' Internet activity both inside and outside the network.

During 2006, 8e6 Technologies continued to see significant demand for all aspects of its Internet filtering, reporting and real-time monitoring technology offerings, as evidenced by the following key financial and operational highlights:

* Record year growth in 2006: Bookings grew 29 percent year-over-year from 2005, a remarkable figure in a market that grew less than 10 percent in 2006, according to 8e6's analysis of public records. In addition, 8e6 is dedicated to funding continued growth and product development through a line of credit secured in 2006 with Silicon Valley Bank and Partners for Growth.

* Industry-leading seat-per-customer ratio and growing market share: 8e6 gained market share during the year, adding 300 new customers and 1.5 million seats, a 35 percent year-over-year increase. At the close of 2006, 8e6 reports over 1400 customers, with a total seat count totaling more than 5.8 million. With an average number of 4000 seats-per-customer, 8e6 boasts the largest seat-per-customer ratio of any Internet filtering vendor in the market.

* Executive and engineering investments: The company made substantial investments in new talent in the engineering and product development areas. Additions include Gary Ulaner, formerly of Symantec, as 8e6's director of product management, and a substantial number of talented personnel in all areas of R&D, programming, QC and beta and program management.

"We experienced a record year in 2006, growing at three times the industry average while doing a better job of maintaining customers than any other company in our sector," said George Shih, CEO of 8e6. "With our leadership position in the education market and tremendous fourth quarter sales of our new Mobile Client product line, 8e6 is well positioned to surpass last year's growth rates. In addition, we are investing in new and exciting growth markets, such as data leakage and internal threat management."

Technology Innovation

8e6 Technologies continues to develop industry-leading technology for the education and enterprise markets. In the first half of 2006, 8e6 announced two brand new products, added significant enhancements to its flagship R3000 Internet Filter and Enterprise Reporter product lines, and expanded the company's initiatives into the China and Taiwan markets. Milestones included:

* Remote filtering solution debuts with exceptional sales: Launch of 8e6 Mobile Client for remote PC and Mac laptop filtering for both the education and enterprise markets. After a Q3 launch, 8e6 saw record-breaking demand for the one-of-a-kind solution.

* Robust real-time monitoring tool debut: 8e6 launched the Threat Analysis Reporter to identify Internet threats in real-time through graphical snapshots of Internet traffic, allowing administrators to quickly view multiple threat categories and the "top-offending" categories and users, based on predefined thresholds and policies.

* Next-generation Enterprise Reporter 4.0: 8e6 added significant usability and feature upgrades to its forensic Internet reporting product, providing users access to detailed information that clearly depicts online behavior and user intent, giving executive management teams responsible for ensuring safe corporate operations that elusive audit trail.

All three product lines are market-proven and fit into an overall security posture necessary for keeping companies safe in an age of heightened threat levels. Together with 8e6's flagship Internet Filter, they provide comprehensive monitoring and reporting of online activity on and off the network--the best enterprise defense against security threats, employee misuse of network resources/time spent off-task, liability issues and student safety.

Channel Development

8e6 launched its official PartnerFocus program designed to provide industry-leading service and support to all authorized 8e6 partners. The program includes free services that other vendors routinely charge for, including 24/7 tech support, sales and technical training, and full access to field engineers. 8e6's partners benefit from the unique sales model of pre-qualified lead generation and sales team involvement in every step of the sales and implementation process. With its leading technology sold only through a select network of security solution providers, the 8e6 sales team is focused on the success of its channel partners, who receive substantial commissions and incentives for completed sales and renewals.

Education Leadership

8e6 continued its dedication to the K-12 education market in 2006, launching a major initiative designed to address the vulnerabilities of Internet-assisted learning at schools. The initiative has three major components: technology solutions optimized for education; an "Open Dialogue" program to share information; and free resources and product evaluations for the K-12 market. 8e6 Technologies also unveiled its new 8e6 Mobile Client, an affordable Internet filtering solution for both PC and Mac laptops. Providing the same core capabilities as 8e6's network filtering solution and easily integrated with 8e6's reporting and monitoring tools, the 8e6 Mobile Client ensures student safety for the growing number of school districts implementing 1:1 laptop initiatives.

In the spring of 2006, 8e6 held a series of meetings with key policymakers in Washington to gather information on the direction of education policy and legislation, and to learn how future changes in policy could impact its customers. At the close of 2006, 8e6 Technologies had solidified its position as the leading provider of Internet filtering, reporting and monitoring solutions for the education market.

Customer Focus

8e6 Technologies' product innovation continues to be driven by customers and their needs. During 2006, 8e6 Technologies held two annual customer conferences with IT administrators from over 40 of their education and enterprise customers. These sessions are designed to gather and incorporate customer feedback into the product roadmap and learn how to better meet their needs, ultimately allowing 8e6 to develop products that address the requirements of their entire customer base. It is this level of commitment, and the work of its certified resellers, that allows 8e6 Technologies to maintain a very high customer renewal rate.

Third-Party Endorsements

Throughout 2006, 8e6 continued to be recognized as a leader in technology and channel innovation in the Internet filtering and reporting industry. In the fall of 2006, CRN Magazine identified 8e6 Technologies as one of the "5 Security Startups You Should Know," while also earning the Checkmark Premium Level Web Filtering Certification from West Coast Labs, one of the world's foremost independent test laboratories. 8e6's R3000IR is the first Web filtering appliance to receive this West Coast Labs certification.

"The 8e6 team feels strongly that 2007 will be another strong year, both in innovation and growth," said Paul Myer, president and COO of 8e6 Technologies. "As our customers needs evolve to include internal threat management and the addressing of Web 2.0 security concerns, 8e6 will evolve with them, offering exciting additions to our product line and cost-effective solutions to continue to monitor and manage users' activities while online."

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.