Citrix Bolsters Application Security with Acquisition of Teros, Inc. the Market Share Leader in Web Application Firewalls.

FORT LAUDERDALE, Fla. -- Acquisition Adds Best-in-class Web and XML Security to Industry-leading NetScaler Application Delivery Solution

Citrix Systems, Inc. (CTXS), the global leader in access infrastructure solutions, today announced it has completed the acquisition of Sunnyvale, CA.-based Teros, Inc., a privately-held provider of application security solutions. Financial terms were not disclosed.

Founded in 2000, Teros is a market share leader in the emerging Web application firewall market and has received numerous industry awards for its innovation in both Web and XML Web services security technology. The Teros team will be added to Citrix's San Jose, CA.-based Application Networking Group to extend the technological leadership of the company's NetScaler(R) application delivery product line.

This acquisition further extends Citrix's leadership in application delivery solutions, products that enable companies to deliver all application types - client/server, desktop and Web - with the highest performance, lowest cost and best security possible. Delivering secure Web applications is particularly challenging because Web vulnerabilities are generally easy to exploit(1), and attacks cannot be detected by traditional security products. In addition, Web applications provide direct access to some of the most sensitive and valuable data in any enterprise, including financial records, credit card numbers and customer identity information, making them especially attractive targets for hackers. These trends have led to a dramatic spike in Web application attacks according to the FBI, with 95 percent of enterprises reporting more than 10 serious Web security incidents last year, up from just five percent in 2004(2).

The Teros solution is a great complement to Citrix's recently-acquired NetScaler product line. As the market leader in Web application delivery, the NetScaler solution provides customers with a single integrated solution that dramatically improves the performance, cost and security of mission-critical Web applications, including defenses against a wide range of application-layer threats such as denial of service and worm attacks. With more than 4,000 enterprise deployments, including the five largest sites on the Internet, the Citrix(R) NetScaler solution already provides secure Web application delivery for millions of users worldwide. Adding the Teros technology will further extend this lead, providing Citrix customers with the industry's broadest set of defenses against Web and XML Web services threats, and solidifying Citrix NetScaler as the most secure Web application delivery solution on the market.

"Web application attacks are the most serious threat to IT security infrastructures today, putting sensitive corporate information and confidential customer data at risk. In the wake of increasingly strict government regulations worldwide, protecting applications is no longer an option," said B.V. Jagadeesh, group vice president and general manager, Citrix. "Customers are increasingly looking to their application delivery vendors to secure against these emerging threats. Teros provides Citrix with state-of-the-art application security capabilities that further extend our leadership as the fastest, most cost-effective, most secure way to deliver Web applications."

Using its award-winning Deep Stream Inspection technology, the Teros solution incorporates a positive security model to enforce "correct" application behavior, automatically blocking new unknown threats in real time without relying on a database of attack signatures that must be constantly updated. It also defends against all types of emerging Web security threats, including cross-site scripting, data theft, forceful browsing, command injection, form field manipulation, cookie poisoning and XML tampering. As a result, Teros has received numerous industry awards, including the coveted "Global Market Leadership Award" from industry analyst firm Frost & Sullivan, awarded to the vendor with the top overall ranking in technology, innovation, market share, and revenue growth rate.(3)

In a May 2005 report entitled "Application Delivery and Web Application Firewalls Are Ready to Converge," Gartner states, "The Web-enabled application delivery and Web application firewall markets will converge because of the affinity of the underlying technology and how these products are operationally deployed. Integration of these two functions into a common processing engine and single management interface will increase security and uptime of applications while reducing the complexity of protecting applications."

"Teros is delighted to be joining a global market leader like Citrix," said Bob Walters, president and chief executive officer, Teros, Inc. "We have been extremely impressed by the Citrix team and are convinced that this combination will be a huge hit in the marketplace."

Citrix will immediately begin selling and supporting the complete Teros application security product line, which will be re-branded as the Citrix NetScaler Application Firewall. In addition to delivering standalone Web application security solutions, Citrix intends to deliver the Teros technology as an integrated software module for the Citrix NetScaler application delivery system in 2006.

About Citrix

Citrix Systems, Inc. (Nasdaq:CTXS) is the global leader and most trusted name in on-demand access. More than 160,000 organizations around the world use the Citrix Access Platform to provide the best possible access experience to any application for any user. Citrix customers include 100% of the Fortune 100 companies and 98% of the Fortune Global 500, as well as hundreds of thousands of small businesses and individuals. Citrix has approximately 6,200 channel and alliance partners in more than 100 countries. Citrix annual revenues in 2004 were $741 million. Learn more at http://www.citrix.com.

For Citrix Investors

This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release such as statements concerning the Application Networking Group's technology leadership, the importance of application security solutions sales and support plans for the Teros solutions do not constitute guarantees of future performance. Those statements involve a number of factors that could cause actual results to differ materially, including risks associated with revenue growth and recognition of revenue, products, their development and distribution, product demand and pipeline, economic and competitive factors, the Company's key strategic relationships, acquisition and related integration risks as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. Citrix assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

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(1) 82 percent of Web vulnerabilities classified as "easy to exploit," Internet Security Threat Report, Symantec, 2004

(2) CSI/FBI Computer Crime and Security Survey, Computer Security Institute, 2005

(3) Worldwide Web Application Firewall Market, Frost & Sullivan, September 2005