Captus Networks Receives an Additional $1.5 Million in Funding, Brings Second-Round Funding to $17.6 Million.

Business Editors/High-Tech Writers

WOODLAND, Calif.--(BUSINESS WIRE)--June 27, 2001

Company secures additional funding despite volatile market,

providing additional support for their Denial of Service solutions

Captus Networks, the leader in protecting networks from denial of service (DoS) attacks, today announced that it has raised an additional $1.5 million in second-round funding, bringing its total to $17.6 million. Funding was provided by H.I.G. Ventures.

"In today's economy, companies need a solid business plan, a seasoned management team and strong partners in the venture capital community. H.I.G. Ventures is a strong partner with a great track record and deep relationships that will help to advance Captus Networks' technology in the marketplace," said Richard G. Helgeson, president and CEO of Captus Networks. "Further, H.I.G. Ventures' investment in Captus proves that innovative companies with solid solutions will succeed. This continuing investment in our company is a great vote of confidence in our business model, our products and our team."

Captus Networks designs and manufactures network security devices that provide immediate and automatic protection from denial of service (DoS) and distributed denial of service (DDoS) attacks. The DoS attacks that Captus products defend against are becoming increasingly common -- and devastating. A DoS attack floods a Web site with traffic, thus making it impossible for the system to respond to legitimate users. DoS attacks have been much in the news -- in the last year, they have disrupted several of the largest sites on the Internet, including Yahoo!, eBay, E*Trade, Amazon.com, Microsoft, and CNN.com.

"DoS attacks can cripple any Web site, but a flood of legitimate traffic can also bring down a Web server as well; at Captus Networks we distinguish between both legitimate and illegitimate traffic to insure that your Web critical applications remain up and operative," said Helgeson. "During April and May, Chinese hackers declared war on American sites to protest the collision of a U.S. Navy surveillance plane with a Chinese fighter. At one point even the White House site was shut down due to a DoS attack.

With the increasing number of Web-centric applications in place today, there's a critical demand for solutions to stop these attacks in seconds. Our new round of funding will provide Captus the opportunity to advance our sales and marketing efforts to continue our leadership position in Denial of Service Prevention."

"A secure network infrastructure is the number one requirement for companies that are migrating to the Web. The protection of their company brand is everything. Captus is the first commercially available product to identify and stop DoS attacks at wireline speeds, protecting business reputation as well as data and potential sales all within seconds," said Craig E. Burson, principal, H.I.G. Ventures. "According to research by Dain Rauscher Wessels, spending in this market space will increase to $15.4 billion by 2004. We believe that Captus is poised to seize a large portion of this market. Its Traffic Limiting Intrusion Detection System is unique in the market and allows a `fine grain' capability for distinguishing between legitimate high-volume network traffic and malicious DoS attacks."

H.I.G. Ventures

H.I.G. Ventures is one of the largest and most successful venture capital firms in the Southeast United States. It is dedicated to helping talented entrepreneurs build market-leading companies. The company's investment activity is focused on early stage, high growth technology companies in communications, infrastructure, e-commerce, and Internet software and service industries. Its most recent venture capital fund has total capital of over $250 million from a distinguished list of strategic partners and financial institutions. H.I.G. Ventures can be reached at [phone] or at www.higventures.com.

Captus Networks

Captus Networks Corp. is an innovative, privately held company that designs, manufactures and markets integrated hardware and software security devices. As the leader in Denial of Service prevention, Captus Networks' vision is to be the preeminent supplier of high performance, network security devices and services for the e-business marketplace. The company's executive offices are located in Woodland, Calif., near Sacramento. Captus Networks is funded by leading venture capital firms such as GMS Capital Partners, L.P. and St. Paul Venture Capital. Captus Networks can be contacted on the World Wide Web at www.captusnetworks.com or by calling (877) 9-CAPTUS.

CaptIO is a trademark of Captus Networks. All other company and product names may be trademarks of the company with which they are associated.