Altor Networks Secures $6 Million Financing Round from Accel Partners and Foundation Capital.

Virtual Network Security Innovator Lands New Financing Round to Expand Product Development, Marketing and Sales to Support Company Growth

REDWOOD CITY, Calif. -- Altor Networks, pioneering a new class of virtual network security solutions, today announced it has secured a $6 million second round of financing led by Accel Partners and Foundation Capital. The funds will be used to accelerate the company's market expansion being fueled by early market demand for its Virtual Network Security Analyzer[TM] (VNSA) and Virtual Network Firewall[TM] (VNF).

According to Jon Crotty, IDC research analyst, security products and services, "The proliferation of virtualization deployments worldwide is creating new traffic auditing, security best practices and regulatory compliance challenges. Consequently, there is a significant opportunity for a new class of security products, integrated tools and appliances, purpose-built for virtualized data centers, which can effectively address these emerging requirements."

"Given the accelerating adoption of virtualization in production data centers, there is a significant market opportunity for a new class of security solutions that can deliver visibility and control over virtual network traffic," said Altor Networks Board Member Peter Wagner, general partner with Accel Partners. "We're excited about our continued investment in Altor Networks, and enthusiastic about the initial customer feedback for Altor's products. We expect strong demand for their Virtual Network Security Analyzer and Virtual Network Firewall to protect virtualization deployments worldwide."

Altor's VNSA and VNF provide unprecedented visibility into virtual switch traffic and control over virtual machines (VMs) being deployed by enterprises, government agencies and organizations in regulated industries. Altor's VNSA and VNF solutions enable network administrators and security professionals to apply security best practices for virtual networks and help companies meet increasingly stringent HIPAA, PCI and SOX regulatory compliance requirements--at a fraction of the cost of legacy security products.

"Securing virtual machines is as important as the operational benefits many organizations are enjoying by virtualizing their data centers," said Altor Networks Board Member Ashmeet Sidana, general partner with Foundation Capital. "We believe Altor Networks has a unique and highly differentiated approach to delivering security best practices for virtualized data centers which represents a huge global market opportunity."

This financing comes during a time of significant momentum for Altor Networks:

* The company launched its first product, the VNSA on March 17, 2008

* Announced the forthcoming availability of the industry's first Virtual Network Firewall slated for release in the summer of 2008

* Named a winner of Info Security Products Guide's 2008 Tomorrow's Technology Today Award.

* The company's VNSA has been deployed by leading customers such as Service Master and Nielsen Mobile, the world's largest provider of syndicated consumer research to the telecom and mobile media markets

"The success of virtualization has created a need for a new class of products that enable data center administrators to extend security best practices into their virtual environments," said Amir Ben-Efraim, CEO and founder of Altor Networks. "Our virtual network security solutions are at the forefront of this new wave of products that significantly improve the security posture of virtualized data centers. At the same time they are helping our customers fully leverage their investment in virtualization and increase their operational efficiency in production environments."

About Altor Networks

Altor Networks is pioneering a new class of virtual network security solutions, purpose built to secure virtualized data centers. The company's initial product lines include the industry's first-ever virtual network firewall and security analysis system. Altor's Virtual Network Security Analyzer[TM] (VNSA) proactively monitors and analyzes the security readiness of virtualization deployments to help enterprises meet stringent regulatory compliance requirements. Data center administrators can now pinpoint a broad range of virtual network security compromises and easily create roles-based security policies. For the first time, security policies can be continuously enforced on individual virtual machines, even as they move throughout the virtualized data center. Founded by security and networking experts from Check Point Software, Cisco and Oracle, Altor Networks is funded by Accel Partners and Foundation Capital and is headquartered in Redwood City, California. For more information, visit www.altornetworks.com.