Counterpane Internet Security's Customers Show Dramatic Improvement in Internet Security.

Business Editors/High-Tech Writers

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

Counterpane's Managed Security Monitoring Provides

Five Hundred Times Reduction in Successful Attacks,

and Even More Protection Against Hacker Damage

Counterpane Internet Security, Inc., developer and acknowledged leader of Managed Security Monitoring (MSM), announced today that its customers are five hundred times less likely to have their network penetrated than the average company, and because of Counterpane's ability to rapidly respond to an attack in progress, their customers have never suffered financial losses due to hackers.

"In the first quarter of 2002, Counterpane's network processed 31 billion network events, and our analysts investigated 57,000 separate security incidents. Of that total, 60% were false positives, 26% were authorized customer activity, and 14% were actual attacks," according to Don DeBolt, Counterpane's director of SOC Operations. "During that time, only 0.006% of those attacks ever resulted in a penetration of Counterpane customers, who suffered no losses because of our rapid response to the assault in progress."

The FBI recently reported that, in general, 1% of all Internet attacks are successful. Counterpane has dramatically reduced this statistic for their customer base. "No customer has ever suffered financial losses while being monitored by Counterpane. We catch hackers in the act, and we ensure that our customers suffer no damage from their actions," said Bruce Schneier, founder and CTO of Counterpane. "Real-time Managed Security Monitoring provides a level of protection unobtainable through security products alone. We've proven we're 500 times better."

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 those attacks, monitored networks gain a level of protection otherwise unavailable. At the same time, overworked security and network administrators can concentrate on the incidents that are important.

"The understated value gained by customers from services, such as Counterpane's MSM, is enabling their constrained resources to focus on the most critical areas that lead to an improved security posture, not replacing them," said Allan Carey, senior analyst for IDC's Information Security Services research program.

"Most companies don't have the manpower to monitor their networks 24x7, and they don't have the expertise to respond to attacks when they occur. In increasing numbers, these companies are turning to Counterpane to monitor their networks and keep them safe," said Tom Rowley, Counterpane's CEO.

Proven results such as these have helped fuel Counterpane's ongoing success. Continued strong sales growth have cemented Counterpane's position as the largest outsourced security monitoring company in the world. "Because we see more of the Internet than anyone else, we're better able to defend our customers," said Schneier. "The Counterpane network has analyzed more network activity in the past three months than anyone else has in their entire history of operation. Our analysts see more security events in a week than anyone else sees in years. We were the first to see NIMDA in the wild, and we're the first to see new security exploits. All of that capability and every new Counterpane customer increases our value to our entire customer base."

MSM has become a critical component for IT management. "Counterpane MSM is a vital piece of our security solution," said Mark Nagiel, consulting manager for NEC Business Network Solutions. "Counterpane helps our customers maximize the value of their investment in security products."

Counterpane sells its monitoring service exclusively through its Counterpane Certified Resellers (CCRs). Today Counterpane has over 50 regional, national, and global CCRs selling MSM worldwide.

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.