Arxceo Corporation to Be Acquired by Japan Communications Incorporated (JCI); Arxceo Technology to Enhance Security for JCI's Secure Portable Broadband Services.

SAN JOSE, Calif. -- Arxceo(TM) Corporation, a provider of anti-reconnaissance and anomaly-based attack prevention technology, today announced that it will be acquired by Japan Communications Incorporated, a Japanese public company recognized as a market-leading Mobile Virtual Network Operator (MVNO). JCI provides integrated security and compliance technology with their mobility products to create a unified communications, security, and compliance solution. The acquisition will occur in three stages over the next two years and is valued at up to $15 million. Arxceo will become a JCI Group company, joining JCI and its wholly-owned subsidiary, CCT, Inc. The acquisition of Arxceo by JCI will strengthen their product and services suite for providing secure portable broadband to U.S. corporate markets.

"We are excited about this acquisition because it augments our ability to secure the corporate mobile workforce. More importantly, we've acquired an experienced team that shares our vision in the future of corporate mobile communication," said Dr. Frank Seiji Sanda, founder and CEO of JCI. "MVNOs must offer cost reduction, increased efficiency and improved services. JCI already provides all three to its customers and strives to continuously add value. As we seek continued growth in the United States, Arxceo's technology will allow us to further enhance our ability to provide corporations easy-to-manage, easy-to-use, secure portable broadband."

"Arxceo is pleased to become part of JCI's growth plans for their communications, security, and compliance suite," said Don Davidson, Arxceo founder and CEO. "Leveraging our technology to provide increased security and added value to their MVNO service fits well with our product development plans. This acquisition validates our belief that network security and compliance will become increasingly important for a range of wireless and embedded devices. JCI's success in the MVNO market provides the right opportunity for system integrators and leading network companies to offer customers seamless, secure portable broadband."

About Arxceo Corporation

The company provides anti-reconnaissance and anomaly-based, attack-prevention appliances that help secure networks from information gathering, vulnerability exploitation, zero-day worm attacks and other malicious network traffic. Arxceo's patent-pending Plug and Protect (PnPRO(TM)) and Tagged Universal Resource Information Transmission (Tag-UR-IT(TM)) technologies combine to provide a distinctive approach to anomaly-based and behavior-based intrusion prevention. Arxceo provides the Ally IP1000(TM) for protection of large-scale networks and the Ally ip100(TM), the first sub-$1000 intrusion prevention solution, is designed to protect SMB networks, as well as an Enterprise's wireless access points and branch or remote offices. Arxceo received the first annual Best-of-Show Impact Award for an exhibitor of its size at RSA Conference 2005. For more information, visit www.arxceo.com.

About JCI

JCI is a world-leading wireless data solution provider servicing enterprises and individuals requiring secure data communication. Known as the pioneer of the data MVNO (Mobile Virtual Network Operator) business model, JCI has a strong focus on providing value-added, differentiated services, especially in the area of security and ease of use. JCI is committed to provide ubiquitously available, ready-to-go access to the network with integrated security protection for the world's mobile workforce. JCI Group(TM) represents JCI's U.S. based interests, companies and development efforts. The group seeks to develop and provide secure mobile communications able to comply with the ever expanding regulatory requirements while maintaining ease-of-use and management. In addition to Arxceo, the JCI Group consists of JCI and Computer and Communication Technology Inc. (CCT). For more information on JCI (Japan's Osaka Exchange: Stock Code 9424), visit www.j-com.co.jp.

Arxceo, Tag-UR-IT, Ally IP 1000, Ally IP 100, Plug and Protect, and the Arxceo Logo are trademarks of Arxceo Corporation. Other brands and product names are trademarks of their respective owners. Copyright 2006, Arxceo Corporation.