AlterPoint Gains Momentum in Healthcare Sector Due To Compliance Initiatives; Customer Base Increases 70 Percent; Leading Operator of Long-Term Care Centers Selects DeviceAuthority Suite To Enforce HIPAA, SOX.

AUSTIN, Texas -- AlterPoint(TM), Inc., the leading provider of intelligent network change and configuration management (NCCM) solutions, today announced a 70 percent jump in customer adoption by healthcare organizations worldwide. The increase is a direct result of companies scrambling to meet pressing deadlines on compliance initiatives such as HIPAA and Sarbanes-Oxley (SOX), and to adhere to ITIL best practices. New customers include AdminaStar Federal, Alberta Cancer Board, Blue Cross Blue Shield of Tennessee, Fraser Health Authority, HCR Manor Care, Roger Williams Medical Center, Partners Healthcare, and Spectrum Healthcare among others.

"The rapid adoption of DeviceAuthority Suite among healthcare organizations is a strong indication that IT departments want a comprehensive solution that automatically manages compliance, change, and security," said Jeffrey Ait, president and CEO, AlterPoint. "With nearing deadlines and severe legal consequences, enterprises are acknowledging the critical role NCCM plays in achieving compliance. The market response has been very positive, and we expect to continue seeing strong growth in various vertical sectors including healthcare, financial, retail, and government."

According to recent surveys published by the Healthcare Information and Management Systems Society (HIMSS) and The American Health Information Management Association, hurdles preventing healthcare organizations from moving towards adhering to compliance regulations include a lack of understanding implementation processes of compliance rules, technology and process integration issues, and time/budget constraints.

HCR Manor Care, the leading owner and operator of long-term care centers in the United States, recently selected DeviceAuthority Suite to proactively enforce HIPAA and SOX compliance across thousands of network devices on their IT infrastructure. HCR Manor Care will leverage DeviceAuthority Suite's out-of-the-box SOX reporting to better understand and identify which devices are in violation, while detailed inventory, compliance and change reports will track and monitor each device configuration. DeviceAuthority Suite's automated policy remediation, real-time compliance state monitoring, proactive troubleshooting, one-click recovery, and intelligent change implementation wizards, will help HCR Manor Care achieve greater accountability, enforce compliance, enhance network security, and reduce administrative costs.

AlterPoint's DeviceAuthority Suite keeps the network properly configured, while ensuring compliance with stringent regulatory mandates, industry standards, and internal security policies across network devices. DeviceAuthority Suite is a key component to any enterprise tasked with implementing and managing the IT network infrastructure against a state of compliance. DeviceAuthority Suite enables IT departments to:

--Enforce internal and external compliance and policy

--Exercise real-time auditing and compliance reporting

--Understand which network components are in and out of compliance

--Perform automated remediation of compliance or policy breaches

In addition DeviceAuthority Suite fully supports and enables ITIL best practices ensuring successful adherence, providing information that is critical to building a quality configuration management database, as well as the integration required to support the IT management processes. According to a recent Forrester Research survey of a score of billion-dollar companies that have adopted ITIL, configuration management ranked third as a key area of importance.

Fraser Health Authority (FHA), one of the leading health authorities delivering health care and preventive services in British Columbia, selected DeviceAuthority Suite to automate change management and maintain ITIL compliance to optimize the overall performance and reliability of their network. Through scheduled change reports and real-time notifications, FHA has a constant awareness of the state of their network and the changes occurring, allowing them to proactively administer device configurations to prevent network outages. FHA also governs and enforces ITIL by establishing compliance rules and automatically generating detailed compliance reports containing device violations and changes to gain accountability.

"For the first time ever, we are able to create rules, policies and implement processes to give our department a structure to follow," said Neil Stainton, Information Technology Architect, Technical Architecture & Security Group, FHA. "Most importantly, we have answers to why a device changed or is out of ITIL compliance, and have direction to fix it. Having a remediation capability through DeviceAuthority Suite is extremely valuable."

For more information on DeviceAuthority Suite solutions, customers, case studies, and more, please visit www.alterpoint.com.

About AlterPoint, Inc.

AlterPoint develops intelligent network change and configuration management (NCCM) solutions that have pioneered the evolution of network management. Companies worldwide rely on the intelligence and automation provided by AlterPoint's award-winning product, DeviceAuthority Suite, to proactively manage configuration change, compliance and security across their multi-vendor network to maximize the performance and availability of their IT infrastructure. Founded in 2001, AlterPoint is headquartered in Austin, Texas, with offices in Europe and Asia. For more information, please visit www.alterpoint.com.

(C) 2001-2005 AlterPoint, Incorporated. All Rights Reserved. AlterPoint, DeviceAuthority, and their respective logos are trademarks of AlterPoint, Inc. in the United States and other jurisdictions. All other company or product names mentioned are used only for identification purposes and may be trademarks or registered trademarks of their respective companies.