AppGate Expands Its Operations to Better Serve European and North American Markets.

Business & High-Tech Editors

AppGate(TM), leading the application layer VPN market with the most advanced "plug-and-play" VPN solutions, today announced that it is responding to its customers' and the growing market's demands through the expansion of services in concentrated technological locations.

AppGate's management has chosen to better centralize its efforts in the U.S. and Europe - positioning itself to gain an even larger share of what Infonetics Research, Inc. reports as a projected $871 million worldwide market for application-layer VPNs by 2005.

The Executive Worldwide Headquarters and European Headquarters will be moving to San Jose, California and Geneva, Switzerland respectively - two cities positioned as key centers of security technology in both North America and Europe. The San Jose office will stand as the company's executive worldwide headquarters, while the European headquarters in Geneva provides AppGate with a critical and strategic vantage point as it services major European markets in France, Germany, Switzerland, United Kingdom and Italy.

"Coupling the market's dramatic growth with our customers primary enterprise locations in North America and Europe, AppGate's team is aggressively expanding services worldwide to provide the highest level of service possible," said Alfred Moresi, AppGate's chief executive officer. "The company's new centralized centers allow our team to acutely focus resource growth in the appropriate areas while gaining support from our new Centers of Excellence."

The shift in location of AppGate's headquarters is supported by the simultaneous announcement of new division accommodations. Foremost, AppGate's strategic change redefines the Durham office's role. As the office's resources continue to expand, the Durham office will support the organization as the North American Center of Excellence - primarily housing the company's worldwide, centralized engineering division while also accommodating sales, support, marketing, product management and worldwide manufacturing divisions. Similarly, the Gothenburg office will remain as a Center of Excellence for Support serving AppGate's important Scandinavian customer base, as well as the European, Middle Eastern and African customers. AppGate Ltd.'s London office, too, will become a Center of Excellence for Sales and Support.

European sales demand is also driving AppGate's planned launch of two new sales offices located in France and Germany. The company will aggressively be building out its United Kingdom locale as well.

Since its inception, AppGate's VPN technology has offered an application-layer VPN product delivering high-level security within a legacy network as well as outside the network (remote or Web access). Most recently, AppGate launched its Junis(TM) PowerBox and Fortimus(TM) PowerBox models for small to medium and large enterprises respectively. The new PowerBox models offer an enhanced "out-of-the-box" solution that now includes such functionalities as Secure Print, expanded clustering capabilities, greater ease of management and AppGate's Protis(TM) Personal Firewall.

Today, rising marketplace demand is acutely focused on VPN and firewall products like the AppGate PowerBox. First quarter alone indicates $651 million in revenues for the VPN and firewall industry - a number expected to increase to $3.1 billion by close of 2002. Of the first quarter's dollars, nearly half is comprised of sales originating in North America.

"AppGate continues to evolve in advance of declared industry shifts," added Samuel Simonsson, AppGate's chairman of the board. "Because of the marketplace's demand for high availability, scalable and `plug-and-play' hardware appliances, AppGate PowerBox models are satisfying customers' demands. The company's expansion and redistribution of resources again signifies its leading actions as it prepares to service the current and future market demands."

About AppGate

AppGate is a privately held company that designs and manufactures e-security software and hardware network solutions for small to large enterprises. AppGate provides the most powerful and advanced VPN solutions that offer enterprises an end-to-end secure pipeline for both internal and external access and authentication to applications and data. Highly scalable and flexible, AppGate's technology easily integrates with any system or operating environment. Major products include the AppGate VPN, AppGate Junis(TM) PowerBox(TM) Models, AppGate Fortimus(TM) PowerBox Models, Protis(TM) Personal Firewall and MindTerm SSH client for OEM users. With worldwide headquarters in San Jose, California and European headquarters in Geneva, Switzerland, AppGate also holds major offices in Durham, North Carolina, London, England and Gothenburg, Sweden. We take e-security further into your enterprise. For more information please visit http://www.appgate.com/.