Cerberian Closes on Additional Round of Funding; Company Raises $1.8 Million in Third Round of Private Funding.

Business Editors/High-Tech Writers

SALT LAKE CITY--(BUSINESS WIRE)--Feb. 19, 2002

Cerberian, a leading provider of employee Internet management services, Tuesday announced it has closed on a third round of funding that raised $1.8 million for the company.

The round was led by vSpring Capital, L.L.C. and also included investments from Forval Creative Inc., Wasatch Ventures, and Cerberian management. The round closed on Jan. 23, 2002.

vSpring and Wasatch have participated in prior rounds of funding for the company and Forval Creative is a first-time investor out of Japan. Forval Creative is the leading network security products and services distributor in Japan and was introduced to Cerberian by JapanWorks, Cerberian's channel development partner for the Pacific Rim.

"Cerberian has shown us that it has the technology and management to be the leading provider of Internet monitoring and filtering software for small- to medium-sized businesses," said Scott Petty managing director of vSpring.

"Cerberian's management is committed to the success of this company and is confident in the service they are providing to their customers. Our new investment demonstrates our confidence that Cerberian's team will deliver on its goals and objectives."

"Cerberian is building momentum through significant technology developments and several strategic partnerships," said Kent Madsen, managing director of Wasatch.

"The strength of the company has been its ability to deliver to its customer a much more accurate, technologically advanced and cost-efficient Internet monitoring and filtering solution than its competitors. We anticipate the company will continue to do so and in the process, gain additional traction and recognition in the industry."

Cerberian's software combines state-of-the-art technology with the Application Service Provider (ASP) business model to provide a unique Internet monitoring and filtering solution to its customers. Cerberian's outsourced delivery model speeds implementation, minimizes expenses and risks incurred across the application life cycle, and reduces the need for in-house technical support.

Because of its unique architecture, the Cerberian Internet Manager is an attractive software solution for end users (businesses and homes), Original Equipment Manufacturers (OEMs), Firewall vendors and Network Appliance vendors.

"The additional capital from our long-term investing partners vSpring and Wasatch shows confidence in our company and management as we move to establish Cerberian's Internet Manager as the most complete and accurate Internet monitoring and filtering application available today," said Jeff Smith, chief executive officer of Cerberian.

"To bring in Forval Creative, an established and leading Japanese distributor of network security and management products and services, is also an important step for our company as we seek to increase our presence in the United States and abroad."

Cerberian's Internet Manager's unique architecture features one of the industry's largest databases of categorized Web sites and provides real-time ratings on any dynamically generated Web site. With minimal or no hardware infrastructure changes, and its pre-configured, easy installation, Cerberian's service accelerates the implementation process while reducing the need for ongoing in-house technical support.

"Forval Creative makes strategic investments in IT security-related companies, and we look forward to Cerberian's growth and continuing development of unique security solutions," said Forval Creative's president and CEO, Kiyoshi Hayamizu. "As Cerberian shareholders, we will pro-actively assist with business development efforts in Japan.

"We believe we will add significant value to Cerberian's Japan market-entry initiatives by leveraging Forval Creative's strengths, including our ability to evaluate network security products and guide R&D efforts to ensure the compatibility of Cerberian's solution with other security products such as VPN-1 and Firewall-1."

About vSpring Capital

Founded in September 2000, vSpring L.P. is an early stage venture capital fund based in Salt Lake City. Its mission is to provide excellent returns to investors by capitalizing on the managerial skills and operating experience of the managing members of its general partner, as they invest in and mentor early stage technology companies.

About Wasatch Venture Fund

Wasatch Venture Fund (www.wasatchvc.com), an affiliate fund of Draper Fisher Jurvetson, is a leader in start-up venture capital, having invested in over 60 high-tech companies. The company focuses on information technology businesses with enormous market potential and its role is to help entrepreneurs achieve their maximum potential through team building, partnerships, advice and support, as well as investments.

About Forval Creative Inc.

Forval Creative is Japan's leading distributor of network security and management, products and services providing Japan's major system integrators with advanced, proven and reliable software solutions. Forval Creative is headquartered in Tokyo and trades publicly on the Nasdaq Japan Market (Code: 2724).

About Cerberian

Cerberian Inc. provides businesses with the most complete and accurate Web-based Internet management tool available, designed to responsibly manage, secure and protect their Internet assets. Cerberian's scalable Internet Manager moves employee Internet management beyond simple blocking and filtering while addressing the four key Internet abuse challenges facing businesses today.

These include loss in productivity, drain on bandwidth, liability, and safety. Cerberian's Rapid Data Capture (RDC) technology combined with its Dynamic Real-Time Rating service provides businesses with a completely outsourced solution that integrates quickly with a company's existing infrastructure with minimal or no additional capital costs.

For more information about Cerberian, please visit www.cerberian.com or e-mail [e-mail].