CyberDefender Corporation Reports Third Quarter 2009 Financial Results; GAAP Revenue Grows 268% Year-Over-Year.

- Reports Sixth Consecutive Quarter of Revenue Growth -

- 215 Percent Growth in New Licenses from Q308 -

- 152 Percent Growth in Sales Receipts Related to Licenses over Q308 -

LOS ANGELES -- CyberDefender Corporation (OTCBB:CYDE), a provider of award-winning PC security, Antispyware/Antivirus Software, PC Optimization, PC Support, and Identity Theft Prevention solutions, today announced financial results for its third quarter ended September 30, 2009.

Highlights

* 268% Growth in GAAP Revenue over Q308

* 152% Growth in Cash Receipts Related to the Sale of Licenses over Q308

* 367% Growth in Year-To-Date GAAP Revenue over the Same Period of 2008

* 369% Growth in Year-To-Date Cash Receipts Related to the Sale of Licenses over the Same Period of 2008

* 62% Sequential Increase in New Licenses

"It is an exciting time at CyberDefender as we report our sixth consecutive quarter of sequential revenue growth," stated Gary Guseinov, CyberDefender CEO. "Once again we saw triple digit growth in our GAAP revenues and our cash receipts, record growth in new licenses and strong overall progress in our business. We are gaining traction with our partnerships, most notably our relationship with Guthy-Renker, with which we are ramping up our television and radio campaigns. This relationship has enabled us to maximize our advertising expenditures, while successfully building our brand."

Results for the Quarter Ended September 30, 2009

GAAP revenues for the third quarter of 2009 grew 268% to $4.4 million, compared to $1.2 million in the same quarter of 2008. Cash receipts from the sales of new subscription licenses, which becomes deferred income on the company's books and is recognized as revenue over the 12 to 36 month terms of each license, grew 152% to $6.3 million for the third quarter, compared to $2.5 million in the same quarter of 2008.

Gross profit in the third quarter of 2009 grew 502% to $3.4 million, compared to $564,000 in the same quarter of 2008.

Advertising expenditures as a percentage of revenue again improved on a year-over-year basis. In the third quarter of 2009, advertising expenditures constituted 80% of revenues compared with 227% of revenues in the same quarter of 2008.

The Company narrowed its net loss for the third quarter, which decreased 8% to $3.6 million or $0.15 per share, compared $3.9 million or $0.24 per share in the same quarter of 2008.

Chief Financial Officer of CyberDefender Kevin Harris stated, "The strong results we reported today indicate that we are on track to reach cash flow positive by the end of the fourth quarter. We generated total sales receipts of $6.7 million for the quarter and $19.2 million for the nine months ended September 30, 2009, which includes licenses, back-up CDs and advertising revenues. We have continued to grow our subscriber base, increased our deferred revenue, dramatically lowered our advertising expenses as a percentage of revenue and narrowed our net loss. In addition, at the end of the quarter we had no debt on our balance sheet, as we converted all of our short-term debt into shares of our common stock. We intend to continue to diligently execute on our growth plan while scaling our operations to match demand and we believe we are positioned for continued growth into 2010."

Results for the Nine Months Ended September 30, 2009

GAAP revenues for the nine months ended September 30, 2009 grew 367% to $11.3 million compared with $2.4 million in the same period of 2008. Cash receipts from the sales of new subscription licenses, which become deferred income on the Company's books, and is recognized as revenue over the 12 to 36 month terms of each license, grew 369% to $17.4 million year-to-date, compared to $3.7 million in the same period of 2008.

Gross Profit for the nine months ended September 30, 2009 grew 367% to $11.3 million compared with the $2.4 million in the same period of 2008.

Outlook

"Looking forward, we expect to realize further growth as we continue to ramp up our sales and marketing initiatives to expand into new markets, increase capacity in our call centers, prepare for the upcoming launch of our 'For Dummies' campaign and mass market retail distribution through Allianex. The market for security software and services for the consumer market is expanding rapidly as new cyber threats emerge every day. We are working diligently to take all the right steps to fully capitalize on this growth opportunity and as such, we look forward to continuing on our growth trajectory throughout 2010," concluded Guseinov.

Conference Call Information

CyberDefender will host a conference call to discuss third quarter 2009 results on Thursday, November 12, 2009 at 1:30 pm PT/4:30 pm ET.

To access the live conference call, dial [phone] (toll free) or [phone] (International) and give the company name, "CyberDefender." Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. A telephone replay will also be available for one week beginning two hours after the completion of the live call, and can be accessed by dialing 1-877-660-6853 or 201-612-7415 for international callers and entering access# 286 and conference ID# 337489 when prompted.

The results will also be available via live and archived webcast at:

http://www.investorcalendar.com/IC/CEPage.asp?ID=152189

About CyberDefender Corporation

Based in Los Angeles, California, CyberDefender Corporation (CYDE) is a provider of Internet security technology for the consumer market. With over 5 million active users of its proprietary patent pending Collaborative Internet Security Network (or the earlyNETWORK), CyberDefender is an industry leader. CyberDefender's earlyNETWORK is designed to address the "zero hour gap," which effectively reduces the risks associated with new and emerging Internet threats. By utilizing a proprietary secure peer-to-peer network, CyberDefender delivers protection to the end user faster than the traditional client-server or cloud methods. CyberDefender develops and markets PC desktop security utilities in the following categories: antispyware, antivirus, and PC optimization. In addition, CyberDefender offers the following services: identity protection and remote PC repair and optimization services. CyberDefender products are fully compatible with Microsoft's XP, Vista, and 7 Operating systems and are available at http://www.cyberdefender.com.

Forward Looking Statements

Statements in this press release that are not statements of historical or current fact, such as CyberDefender's expectation of future revenue growth and profitability, constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause CyberDefender's actual results to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Factors that could cause CyberDefender's results to be materially different from the forward-looking statements include whether CyberDefender will be able to find financing when and as it needs it and whether CyberDefender's revenues will eventually exceed its expenses. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in CyberDefender's reports and registration statements filed with the Securities and Exchange Commission, which are available for review at http://www.sec.gov/.

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