Cyberterrorism and Virus Mutations Among Next New Wave of Cyber Trends.

NEW YORK--(BUSINESS WIRE)--Jan. 3, 2001

Predictive Systems' Global Integrity Information Security Practice

Offers End-of-Year Cyber-Crime Predictions

Cyber-terrorist activity and new delivery mechanisms for the transmission of virus mutations will be among the next wave of significant information security trends to affect businesses, organizations, and even individual users, according to Predictive Systems, a leading network infrastructure consulting firm.

"Advances in technology, insider knowledge, inadequate security precautions - all are contributing to a new generation of criminal cyber behavior that could have a potentially devastating impact on companies and even individuals that fail to take steps to protect themselves," said Dr. Terry Gudaitis, a cyber crime profiler for Predictive Systems. Gudaitis based her comments on more than a decade of experience conducting extensive behavioral assessment and criminal profiling for local law enforcement, federal agencies and bureaus, and private organizations.

Based upon data reported in the firm's third quarter Global E-Review, a quarterly review of threats, vulnerabilities, and identified trends, the types of cyber behavior and security problems organizations may see in 2001 will include:

-- Wireless applications will create a new mechanism for cyber

criminals.

Wireless applications are going to create yet one more

mechanism for cyber criminals to use to commit crimes. In

fact, virus writers have already created the PalmOS/Phage

virus, which recently hit the Palm OS PDA operating system.

-- Cyber Terrorist activity and hactivist activity will become

more public and visible.

Currently, cyber-terrorists and hactivists do not appear

to be well organized, and in some cases, do not have access to

the necessary infrastructure to conduct a successful attack.

However, with the increasing influence of more technically

sophisticated members, better organization, more charismatic

leadership, and the ability to launch an attack from a

well-infrastructured location, a significantly destructive

cyber-terrorist or hactivist event is nearly inevitable. The

target will most likely be a major US corporation or financial

institution.

-- Virus mutations and transmission/delivery mechanisms will

increase.

Wireless technologies that are now being developed will

also be vulnerable to similar viruses to Phage, which was

launched against the Palm operating system. Viruses will most

likely also be launched via MP3 files and MP10 files.

-- Insider issues and attacks are going to stem from more

senior-level and executive employees.

Ex-hackers are finding their way into companies,

organizations, and even the federal government. Although these

individuals have claimed to have "changed their ways," it is

unlikely that they actually have. Some hackers do not even

believe that their hacking or cracking is unethical or

unacceptable.

According to Dr. Gudaitis, "Cyber-criminals will continue to take advantage of all the new technologies and methods available to them - the trick is to understand how, why, where, and when they will choose to launch an attack."

About Predictive Systems

Predictive Systems, Inc. (NASDAQ: PRDS) is a leading network infrastructure consulting firm focused on building fast, reliable, secure networks for service providers and global enterprises. The firm's BusinessFirst(TM) approach maps technology solutions to business goals. Predictive Systems' clients include Bear Stearns, Cisco Systems, DLJdirect, First Union National Bank, WorldCom, Pfizer, and Qwest Communications. Headquartered in New York City, Predictive Systems has regional offices throughout the United States. Internationally, it has offices in Germany, Japan, the Netherlands, and the UK.

For additional information, please contact Predictive Systems at 1-800-770-4958 or visit its home page at www.predictive.com.

Predictive Systems, the Predictive Systems logo, BusinessFirst, e-frastructure, e-readiness, and e-xplain are trademarks or registered trademarks of Predictive Systems, Inc. All other brands or product names are trademarks or registered trademarks of their respective companies.

This press release contains statements of a forward-looking nature relating to future events or future financial results of Predictive Systems. Investors are cautioned that such statements are only predictions and that actual events or results may differ materially. In evaluating such statements, investors should specifically consider various factors that could cause actual events or results to differ materially from those indicated from such forward-looking statements, including the matters set forth in Predictive Systems' reports, Predictive Systems' ability to integrate the operations of Global Integrity into its operations, Predictive Systems' ability to realize the expected benefits from the acquisition, Predictive Systems' ability to maintain its position in the industry, and the matters set forth in Predictive Systems' other documents filed from time to time with the Securities and Exchange Commission.