Courion Secures $9 Million in New Funding; Extends Lead in Identity Management With Record Performance in Fiscal Fourth Quarter and Expansion of Customer Base.

Business Editors/High-Tech Writers

FRAMINGHAM, Mass.--(BUSINESS WIRE)--Jan. 28, 2003

Courion(R) Corporation, a leading provider of identity management solutions, today announced it has raised $9 million in Series D financing, bringing total funding in the company to $27 million. The investment comes on the heels of a record 2002 fiscal fourth quarter, in which Courion added 18 customers for its enterprise user provisioning and password management software. Among the 18 customers were eight companies in the FORTUNE 500, including industry leaders such as Duke Energy (NYSE:DUK), Teachers Insurance and Annuity Association - College Retirement Equity Fund (TIAA-CREF), Cinergy (NYSE:CIN), Office Depot (NYSE:ODP), and Avon Products (NYSE:AVP). More than 110 enterprises now make up Courion's world-class customer base, including 20 of the FORTUNE 100 and 40 of the FORTUNE 500.

QuestMark Partners, an existing Courion investor, led the new round of funding, which also included two new investors. Courion will use the additional funding to expand its sales and support organizations to meet increasing customer demand, extend its identity management product lines, and accelerate the company's position as the largest, privately funded provider of self-service identity management solutions.

"Courion had a very strong second half of 2002, despite the slowdown in IT spending, and we are confident the company will end 2003 with more FORTUNE 500 implementations than any competing vendor," said Tom Hitchner of QuestMark Partners. "The company's user provisioning product line has quickly established itself as best-in-class, and it's a great complement to Courion's already-proven password management technology. These products are delivering real value. Courion is a solid company with an excellent team -- so we are glad to increase our investment."

Courion now has three million licensed users and tens of millions of digital identities under management. Helping fuel the company's growth has been the success of Courion's new AccountCourier(TM) family of user provisioning solutions, which has augmented the continued success of PasswordCourier(R), Courion's enterprise password management product family. AccountCourier has gained strong customer acceptance for its ability to automate the process of granting, changing, and revoking user access rights in response to employee status changes, such as new hire, promotion, transfer and termination, without the limitations of competitive offerings. Courion's IdentityLink(TM) technology enables AccountCourier to seamlessly integrate with existing enterprise directories and databases, rather than requiring a single repository, while Adaptive Workflows(TM) enable customers to quickly create provisioning policies that simultaneously satisfy the needs of human resources, lines of business, and information security organizations.

"Since our founding in 1996, Courion has demonstrated the ability to win, retain, and deliver password management value to Fortune 500 customers," said Chris Zannetos, CEO, Courion. "We are proud to continue that success in user provisioning, with three Global 500 AccountCourier customers totaling over 100,000 licensed end users coming on board in the fourth quarter. By innovating and executing at a rate that is considerably faster than the competition, Courion is now the only identity management vendor with a comprehensive, integrated family of password management and user provisioning solutions. We look forward to leveraging the additional investment to enhance our position as the market and technology leader in identity management."

About Courion

Courion Corporation is a leading provider of identity management solutions that help enterprises manage the access rights and credentials of employees, business partners, and customers with more speed, more security, and less cost. Courion's Identity Management Suite, anchored by its AccountCourier user provisioning and PasswordCourier password management product families, securely automates manual identity management processes by aligning information security policies with business objectives and connecting quickly to existing IT infrastructure for rapid ROI.

Courion's customers include industry leaders such as The Boeing Company, Cummins, Inc., Dell Computer, GE, Raymond James Financial Services, SunTrust Banks, Target Corporation, government institutions such as the U.S. Internal Revenue Service and U.S. Census Bureau, and large not-for-profit organizations such as Kaiser Permanente. Courion is funded by QuestMark Partners, JMI Equity, and other private investors. For more information, contact Courion's headquarters in Framingham, MA, USA at [phone] or visit www.courion.com.

Courion and PasswordCourier are registered trademarks and AccountCourier is a trademark of Courion Corporation. All other company and product names may be trademarks of their respective owners.