Authentium Secures $8.0 Million in Third Round Funding.

Business Editors/High-Tech Writers

WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Jan. 6, 2004

Authentium, one of the leading security software developers in the United States, and developer of the Command Antivirus(TM) range of products and Authentium ESP(TM) group of security software plug-in modules, announced today that it has received US$8.0 million in additional funding.

The round included participation from several new private investors, plus existing shareholders, in an offering of Common Stock. Additional financial terms and final investor list were not disclosed.

"This is a great start to the year," said John C. Sharp, Authentium's Chairman & CEO. "This investment brings our fund-raising to a close, and will help us position Authentium as a leading developer of security software and scaleable policy management solutions for large networks. In addition to ramping up development of our proprietary core technologies, these funds will allow us to execute an aggressive marketing plan and grow our business from millions of users, to tens of millions of users during the coming three years."

"It is very pleasing for us to welcome new investors into the company, and at the same time, welcome back existing shareholders," added Pete Nielsen, Authentium's COO. "By choosing to invest in Authentium, these investors are clearly demonstrating their confidence in our business plan, our potential value, and the growing strength of our ESP(TM) threat detection and prevention products and technology base."

Authentium plans on using the investment to accelerate product development, marketing, and direct sales efforts for its flagship Authentium ESP(TM) security software platform, to be released during 2004, in conjunction with leading broadband ISPs, including Comcast, and leading education software distributor, Riverdeep.

Authentium's Enhanced Security Platform (ESP(TM)) architecture enables large network operators to deploy and manage a range of multi-vendor, "best of breed" security software modules, including Authentium's own award-winning Command Antivirus and Curtains(TM) for Windows(R) products, plus technologies from other industry leaders. Authentium ESP(TM) seamlessly integrates client and server security, security policy management, and license management across large networks.

As reported by several publications earlier in the year, including the Wall Street Journal Online and The Economist, Authentium has seen record sales levels during 2003, mainly due to increasing demand for its core antivirus and spam filtering products. During December 2003, the company achieved a 200% increase in sales over the same month in 2002.

"Clearly our customers appreciate the steady improvements they have seen in our software this year, and are responding by purchasing more of our security products," stated John Sharp. "This investment will ensure that we are able to continue to develop new product offerings, improve our existing products, and reach the performance targets that our customers have set for us, and the revenue targets we have set for ourselves."

Authentium develops and markets a comprehensive range of authentication and data security solutions for network environments. Authentium's customers include leading broadband ISPs, major education institutions, government agencies, and Fortune 500 companies.