Citadel Security Software Named to Software Magazine's 22nd Annual Software 500.

DALLAS -- Software Magazine Ranks Citadel Security Software as one of the World's Largest Software Companies 

Citadel Security Software Inc. (Nasdaq:CDSS), a leader in full life cycle vulnerability management and policy enforcement solutions, announced today its inclusion on the Software 500, Software Magazine's list of the world's foremost software and services providers, published as an online catalog on www.Softwaremag.com.

Citadel Security Software was ranked 435th and one of the top five companies in the $5 to $10 million range, with software revenue of $5.8 million. Citadel's revenue growth rate over the previous year was 346 percent.

"The software industry remains extremely dynamic, with 140 new companies appearing on the 2004 Software 500 list. Overall results were mixed but total revenue for the 500 was up 14 percent and total employment up 8 percent," says John P. Desmond, editor of Software Magazine and Softwaremag.com. "Sectors strong this year include security, business process management and system integration services including outsourcing services. Site visitors will notice changes to the Software 500 online this year that make it easier to navigate. Our aim is to help CIOs, senior IT managers and IT staff research their partner options and that is a valuable service."

The Software 500 is a revenue-based ranking of the world's largest software and services suppliers targeting enterprise IT organizations. The list includes both private and public companies; 30 percent of the 2004 Software 500 companies are private. The Software 500 is a worldwide list in that any company may submit financial and product information via the annual Software 500 survey, conducted 100 percent on the Web.

The ranking is based on total worldwide software and service revenue for 2003. This includes revenues from software licenses, maintenance and support, training and software-related services and consulting. Suppliers are not ranked on their total corporate revenue, since many have other lines of business, such as hardware. The financial information was gathered by a survey prepared by King Content Co. and posted at www.Softwaremag.com, as well as from public documents.

About Softwaremag.com, The IT Software Journal

Softwaremag.com, The IT Software Journal, is the Web publishing effort of Software Magazine, a brand name in the industry for over 20 years. Softwaremag.com is the online catalog to enterprise software and the home of the Software 500 ranking of the world's largest software and services companies, now in its 22nd year. Software Magazine and Softwaremag.com are owned and operated by King Content Co., the Web content development and publishing firm run by John P. Desmond.

About Citadel

Citadel Security Software Inc., a leader in full life cycle vulnerability management solutions powered by AVR technology, helps enterprises effectively neutralize security vulnerabilities. Citadel's patent-pending, Common Criteria EAL 3 certified Hercules(R) technology provides users with full control over the automated remediation process, enabling efficient aggregation, prioritization and resolution of vulnerabilities detected by industry-standard vulnerability assessment tools. SecurePC(TM) and NetOFF(TM) products enable companies to enforce security policies from a single point of control. Citadel's solutions enable organizations to ensure the confidentiality of information, reduce the time and costs associated with the inefficient manual remediation process, and facilitate compliance with organizational security policies and government mandates such as FISMA, HIPAA and Gramm-Leach-Bliley legislation. For more information on Citadel, visit www.citadel.com, or contact the company at [phone].

Safe Harbor/Forward-looking Statements:

This press release may contain forward-looking statements that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or future financial performance and involve known and unknown risks and uncertainties that may cause actual results or performance to be materially different from those indicated by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "forecast," "may," "will," "could," "should," "anticipate," "expect," "plan," "believe," "potential" or other similar words indicating future events or contingencies. Some of the things that could cause actual results to differ from expectations are: the current economic and geopolitical environment; current information technology spending trends; the uncertainty of funding of government information technology security projects; a lack of Citadel operating history; uncertainty of product acceptance; uncertainty of ability to compete effectively in a new market; the uncertainty of profitability and cash flow of Citadel; intellectual property rights and dependence on key personnel; economic conditions; the continued impact of terrorist attacks, global instability and potential U.S. military involvement; the competitive environment and other trends in the company's industry; changes in laws and regulations; changes in the company's business plans; interest rates and the availability of financing; liability and other claims asserted against the company; labor disputes; the company's ability to attract and retain qualified personnel; and inflation. For a discussion of these and other risk factors, see the company's Annual Report on Form 10-KSB for the year ended December 31, 2003 and its Quarterly Report on Form 10-QSB for the quarter ended June 30, 2004. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. These risk factors may not be exhaustive. The company operates in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on the company's business or events described in any forward-looking statements. The company disclaims any obligation to publicly update or revise any forward-looking statements after the date of this report to conform them to actual results.

Editors Note: Citadel is a trademark and Hercules is a registered trademark of Citadel Security Software Inc.