Chicago Firm Offers Service To Protect Internet Systems.

Business Editors

NORTHBROOK, Ill.--(BUSINESS WIRE)--July 23, 2002

Catbird Networks Creates "External Security Monitoring" Service

Category: A Unique, Low-Cost Solution To Address Identity Theft and

Other Computer Crimes

A new venture formed by two of Chicago's leading technology players is addressing critical Internet security issues such as identity theft, hijacking and other network vulnerabilities that, combined with other computer related crimes, cost U.S. consumers and corporations an estimated $11 billion per year. Catbird Networks Inc. provides intelligent, comprehensive automated network monitoring solutions that identify defacement, hijacking and identity theft, as well as monitoring online shopping and banking transactions and Web site performance.

Catbird Networks was founded by local technology leaders Ron Lachman, entrepreneurial visionary whose credits include defining critical components of the Unix operating system and defining the way the Internet distributes content to surfers, and Randy Storch, former CEO of three separate Chicago-based technology start-ups, including Open Port Technology Inc., a provider of client/server messaging solutions for multi-national carrier customers. The company is funded by Lachman Goldman Ventures.

"In forming Catbird, we saw an opportunity to deliver a low-cost network monitoring service that will help companies remain aware of the integrity of their network, and provide them an opportunity to act on a breach of network security in the shortest amount of time," said Storch, president and CEO, Catbird Networks.

"The Catbird solution is unique because it exists outside the firewalls and Internet detection systems - providing an added layer in a company's security system and allowing the company to detect if traffic is being diverted from a Web site. This is a very inexpensive and unique method to detect if a site is being spoofed or hijacked, both of which are leading causes in Internet identity theft," said Storch.

External Security Monitoring: Delivering Layered Security

The Catbird solution defines a new category of Internet security, what Storch calls External Security Monitoring. This provides an added layer in a company's security system which is important whether it is working in conjunction with a single firewall, or a complex, multi-layered system. Its unique location on the outside of the firewall helps detect when Internet traffic is being diverted from outside the existing firewall system - a major ploy in identity theft.

Catbird's "outside-in" view of the network means that it sees the network the same way a hacker would, enabling a company to identify important vulnerabilities that might otherwise go undetected. Firewalls and intrusion detection systems cannot detect all instances of identity theft because in some cases, the security system is never penetrated - meaning existing security systems would never know that traffic is being diverted. This is one of the leading benefits of External Security Monitoring.

"Our system checks a customer's site over 43,000 times per month in monitoring for any holes in security," Storch said. "In the physical world, that's equivalent to having a security officer complete his rounds once every minute to see that your facility remains secure. No one else provides this level of added security."

Supporting Regulated Institutions

The Catbird solution is particularly relevant for regulated institutions. Catbird has already established a great track record of attracting both large and small customers in banking, education, legal and e-business. One such customer is The Marion Bank in Marion, Ohio. Catbird helped Marion Bank pass its annual FDIC audit by providing a necessary added layer of security. Phil Hotz, director of IT Security at Marion Bank, said Catbird's solution, "keeps us on top of our security responsibilities and is easy to manage with minimal drain on our IT resources. Importantly, it is also an affordable solution that can be deployed immediately."

Reliable, Practical, Unique

In addition to its unique external position on the network, Catbird's monitoring solution is the only one that:

-- monitors every minute, every day, 365 days a year - enabling a company to react to a break-in immediately and limiting any damage a hacker can cause

-- addresses vulnerability and penetration testing through 24/7/365 monitoring, not one-time snap-shots

-- does not require an investment in hardware or software - a savings of time and money, making this important security layer available to the masses

-- is not bundled with professional services as with a consultant and/or a managed security firm

-- is low cost and does not require a large capital outlay

"We believe that network security is critically enhanced by adding additional layers of security," said Storch. "Catbird is the only External Security Monitoring system that we know of that approaches network security in this manner. Our early success with regulated institutions is a strong indicator that the time is right for a reliable, inexpensive and round-the-clock monitoring solution. We are very excited to be able to help businesses meet their demanding security needs."

About Catbird

Catbird Networks provides intelligent, comprehensive automated network monitoring solutions that identify vulnerabilities, defacement, hijacking and identity theft, as well as monitoring online shopping and banking transactions and Web site performance. Catbird Networks is based in Northbrook, IL, and was founded by the inventors at Centergate Research (the Geektools people). Centergate is a group of entrepreneurial developers and engineers working on creating products and services to improve the Internet.