Counterpane Internet Security Positioned in the Visionary Quadrant for Managed Security Services.

MOUNTAIN VIEW, Calif. -- Please replace the release (dated Jan. 9, 2006) with the following corrected version due to multiple revisions.

The corrected release reads:

COUNTERPANE INTERNET SECURITY POSITIONED IN THE VISIONARY QUADRANT FOR MANAGED SECURITY SERVICES 

Counterpane Internet Security, Inc., the leading protector of networked information, today announced that market research firm Gartner, Inc. has positioned Counterpane in the visionary quadrant in its December 2005 Managed Security Services Provider Magic Quadrant, 2H05.(1) The Magic Quadrant evaluates vendors on completeness of vision and ability to execute, and uses selection criteria based on vendor and product capabilities, breadth and depth.

"Our success in winning new customers and retaining existing customers is achieved through delivering the highest quality of service," said Paul Stich, President and CEO of Counterpane. "We create trusted environments in which business is conducted globally with significantly reduced risk."

The Gartner report projects that by year-end 2005, the managed security services market in North America will reach over $1 billion, an 11.4 percent increase over 2004. Primary indications of the continuing maturation of the MSS market include compliance concerns and more activity in outsourcing basic security operations, with a strong focus on firewall management and IDS monitoring. Gartner further attributes its estimated 2005 North American market growth to an increasing requirement for more-frequent vulnerability scanning delivered as a subscription service and as part of a larger monitoring effort.

Stich cited Counterpane's direct sales focus on winning enterprise-level companies while continuing to invest in the company's deep commitment to its existing customer base. The result: Counterpane won new customers that span across several major industries: utilities, power & energy, pharmaceutical/healthcare, financial services, materials/manufacturing, technology.

"We are committed to creating state-of-the-art, adaptable security solutions that deliver comprehensive protection at a reduced cost," added Bruce Schneier, CTO of Counterpane.

With Counterpane's rich heritage in managed security, customers choose Counterpane for five important reasons:

--Real economies of scale and cost: Counterpane monitors and manages a global customer infrastructure that includes more than 550 networks and spans nearly 200 countries. Global reach is combined with a cost-effective, vendor-neutral approach that enables Counterpane to support standard and unique platforms and accommodate "home-grown" applications, often at no additional cost.

--Ability to monitor any critical asset at customers' request: Counterpane can monitor security data from any critical asset with the ability to send logs, whether it's a perimeter security appliance, or a database application buried deep behind multiple layers of access control. Counterpane's ability to monitor deep into the customer's environment at the application and transaction level is a key competitive advantage.

--Providing objective, critical advice on key security issues: Counterpane's vendor-neutral stance, coupled with tight technical relationships with leading security product vendors, ensures that customers always get the most current, objective, and critical advice on security issues.

--Commitment to delivering the most robust security infrastructure: Counterpane possesses fully-redundant, failover Secure Operations Centers (SOCs) manned by a longstanding team of highly trained security experts. Counterpane continues to invest in its infrastructure -- now totaling over $60 million -- to ensure that customers always have the strongest protection enabled by state-of-the-art facilities and best-of-breed technologies.

--Ensuring Counterpane customers the best possible defense against threats and empowering them to immediately respond to audits with instant access to all enterprise log data and decision history.

About Counterpane

Counterpane is the world's leading protector of networked information -- the inventor of outsourced security monitoring and the foremost authority on effective mitigation of emerging IT threats. With the most comprehensive view available of global information security events, Counterpane offers customers the earliest possible warning of internal or external threats to their information security and availability, as well as the expert counsel required to successfully mitigate such threats. Counterpane's managed service model and technology products provide information-intensive organizations the security they require to collaborate with ever-increasing numbers of partners, customers, suppliers, investors and government regulators. The company is privately held and headquartered in Mountain View, Calif.

Magic Quadrant Disclaimer

The Magic Quadrant is copyrighted 30 December 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

(1) Gartner Research "Magic Quadrant for MSSP's, North America, 2H05," by K. M. Kavanagh and J. Pescatore. December 30, 2005.