Frost & Sullivan Names TippingPoint 2005 Network Security Infrastructure Protection Entrepreneurial Company of the Year.

SCOTTSDALE, Ariz. -- Frost & Sullivan will present TippingPoint Technologies, Inc., (NASDAQ:TPTI) with the 2005 Network Security Infrastructure Protection Entrepreneurial Company of the Year Award at tonight's Excellence in Information & Communications Technologies Awards Banquet in recognition of its vision, foresight, and achievements in the intrusion prevention system (IPS) market.

The company started developing the first network-based intrusion prevention system in January 2001. Over the next four years it invested close to $50 million in research and development on its UnityOne IPS product line. The company had to depend only on the proceeds from its IPO and private placements to finance its operations and capital expenditure requirements.

TippingPoint increased its revenues to over $20 million in the first three quarters of fiscal year 2005, up from $5.8 million in fiscal year 2004. The company's flagship product line, UnityOne IPS, has received praise and accolades from customers, reviewers, and analysts.

"TippingPoint launched UnityOne in January 2002 and began marketing it in September 2002 -- the timing of the product launch could not have been better," says Frost & Sullivan industry analyst Jason Wright. "Currently, the most definitive technological trend in the market is the shift from intrusion detection to intrusion prevention."

The problem of false positives, inadequate performance, and high total cost of ownership was restraining the adoption of intrusion detection systems (IDSs). Thus, the majority of the market's growth in 2004 has come from newer IPS products. In 2003, the network-based IDS/IPS market grew 44.6 percent. The majority of this growth came from intrusion prevention products, while the sales of the more traditional IDS products have were flat.

"The network IPS market will grow faster than any other IDS/IPS market sub-segment, and TippingPoint is the rising star in that space," says Wright. "The company has shown remarkable vision in identifying early on the demand for intrusion prevention systems."

UnityOne, an in-line device inserted seamlessly and transparently into the network, is built using TippingPoint's proprietary Threat Suppression Engine technology. This is a hardware-based intrusion prevention platform consisting of state-of-the-art network processor technology and TippingPoint's own set of custom application-specific integrated circuits (ASICs). It can inspect each packet at wire speed. UnityOne also incorporates the TippingPoint security team's Digital Vaccine update service, a highly scalable protection solution where new filters are continuously fed to the IPS to keep it up-to-date against the latest vulnerabilities.

Having shown remarkable vision in the early identification of the market demand of network-based intrusion prevention products, TippingPoint is a worthy recipient of the Frost & Sullivan 2005 Network Security Infrastructure Protection Entrepreneurial Company of the Year Award. TippingPoint's sustained level of R&D expenditure and execution of sales and marketing strategy have garnered significant customer wins and impressive market share gains in just one year. Well-positioned to dominate its segment in the years to come, the company has truly demonstrated superior entrepreneurial ability.

Frost & Sullivan presents the Entrepreneurial Company of the Year Award each year to the company that has demonstrated superior entrepreneurial ability in its industry. This Award signifies the recipient's identification of a unique product solution with significant market potential. Additionally, it certifies that the company's marketing strategy is sound and poised for success.

Held in Scottsdale, Frost & Sullivan's 2005 Excellence in Information & Communications Technologies Awards Banquet honors world-class companies for outstanding performance and achievements in the information and communications technologies markets. An annual event, the banquet recognizes the quality and merit of distinguished individuals and companies.

About TippingPoint Technologies, Inc.

Based in Austin, Texas, TippingPoint is the leading provider of network-based intrusion prevention systems that deliver in-depth application protection, infrastructure protection, and performance protection for corporate enterprises, government agencies, service providers, and academic institutions. The company's innovative approach offers customers unmatched network-based security with unrivaled economics, ultra-high performance, scalability, and reliability. TippingPoint can be contacted through its Web site at www.tippingpoint.com or by telephone at 1-88UNITYONE.

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. The foundation of this partnership approach is our Growth Partnership Services platform, whereby we provide industry research, marketing strategies, consulting, and training to our clients to help grow their business. A key benefit that Frost & Sullivan brings to its clients is a global perspective on a broad range of industries, markets, technologies, econometrics, and demographics. With a client list that includes Global 1000 companies, emerging companies, as well as the investment community, Frost & Sullivan has evolved into one of the premier growth consulting companies in the world. For more information, visit www.frost.com.