Counterpane Internet Security, Inc. Announces Strong Growth and High Demand for Its Managed Security Monitoring Services.

Business Editors/High-Tech Writers

CUPERTINO, Calif.--(BUSINESS WIRE)--Feb. 11, 2002

Counterpane's Continued Success Impervious to US Economic Crisis

Counterpane Internet Security, Inc., developer and acknowledged leader of Managed Security Monitoring (MSM), announced today a record number of new customer acquisitions for the fourth quarter. Service contracts were up 200% from the previous quarter and 500% year over year. In the wake of September 11 and waves of Internet attacks such as Code Red and NIMBDA, customers are turning to Counterpane -- the leading provider of managed security services.

"Companies have come to the realization that they need the protection of expert security monitoring, and outsourcing to Counterpane is the fastest and most cost effective way to satisfy this need," said Counterpane CEO, Tom Rowley. "We have never seen stronger demand."

Counterpane's sharp increase in customer acquisition is a direct result of its strategy to sell monitoring exclusively through channel partners. In the single month of December, Counterpane channel partners booked more monitoring contracts than in any previous quarter. "We've cracked the distribution code," said Counterpane Executive Vice President and Chief Marketing Officer John Bruce. "Companies want to buy monitoring through national and regional security VARs. Counterpane makes it easy for them to do that."

Today, Counterpane has over 50 security VARs, world-wide, selling Counterpane monitoring. Another 50 resellers are being added this year. "We have VARs in North America, South America, Europe, and Asia," said Rowley. "Today there are more people selling Counterpane's MSM service than there are selling every other managed security service combined."

Rowley added: "Our 2002 performance is right on track for accomplishing our goals for the year, and gives us a continued lead in this evolving market space. We remain strong from an operating point of view, and our balance sheet gives us the strength to survive unforeseen economic conditions."

Through a unique combination of technology and human expertise, Counterpane's MSM service monitors enterprise networks worldwide 24x7, identifying anomalies and attacks as they occur. By rapidly responding to these attacks, the network is protected and the risks of doing business on the Internet are greatly reduced.

Counterpane currently monitors hundreds of networks, making it the largest MSM company in the world. "Counterpane's global monitoring network analyzes over thirty million network events per day," said CTO and Founder, Bruce Schneier. "No other monitoring company in the world sees even a small percentage of that."

About Counterpane

Counterpane Internet Security, Inc. is the innovator and acknowledged leader in providing Managed Security Monitoring (MSM) services. MSM combines people and technology to safeguard businesses. Working from a network of technically sophisticated Secure Operations Centers (SOCs) and using progressive analysis tools, Counterpane has built the most advanced analysis, correlation, detection, and diagnosis technology, comprising of a Sentry monitoring probe on the customer's network and the Socrates knowledge base inside the SOCs. Using this technology, Counterpane's expert Security Analysts are able to detect security incidents -- both external intrusions and insider attacks -- in real time, and tailor immediate, effective responses for its customers. The company is funded by Accel Partners, Amerindo Investment Advisors, Inc., Bessemer Venture Partners, Dell, Deutsche Bank, Goldman Sachs, and Morgan Stanley Dean Witter Equity Fund. Headquarters are located at 19050 Pruneridge Avenue, Cupertino, California, USA. Phone: [phone], Fax: [phone], Website: www.counterpane.com.

Note to Editors: Counterpane is a trademark of Counterpane Internet Security, Inc. All other companies, brand names or products are trademarks or registered trademarks of their respective companies.