Guardium Experiences Strong Growth in 2006 as User Demand and Industry Analysts Validate Need for Database Security and Monitoring.

Extends Early Lead in Market by Tripling Size of Installed Base;

Works with Industry Leaders to Accelerate Data Security and Data Governance Initiatives

WALTHAM, Mass. -- Guardium, the database security company, closed 2006 with significant growth as enterprises worldwide implemented its real-time, appliance-based technology to secure their enterprise data, automate compliance monitoring, and rapidly address auditors' requirements.

The company nearly tripled its bookings and installed base while increasing the number of employees by nearly 60 percent in 2006. Demonstrating broad-based demand, the company's new customers span a range of geographies and industries, including financial services, manufacturing, energy, telecommunications, transportation, government, and health care.

Guardium also received a strategic investment from Cisco Systems and achieved IBM's "Advanced Industry-Optimized" Status for Financial Markets by demonstrating successful implementations with IBM enterprise customers in the financial services industry.

"Organizations understand the strategic imperative to secure enterprise information. Until now, however, they haven't had practical and field-proven solutions to protect their databases without impacting performance and availability," said Ram Metser, Guardium CEO. "At the same time, they're looking to save time and money by automating many of the complex activities required by auditors. As a result, we're strongly positioned for continuing growth in 2007."

Customer Highlights

Some of the deals Guardium won in 2006 include:

* A multi-million dollar purchase by a global bank, that implemented Guardium's solution to provide tighter internal controls around critical databases and automate compliance monitoring for internal auditors and SOX.

* A major telco that deployed Guardium's technology to protect the privacy of phone records in 12 geographically-distributed data centers that are managed by a major global systems integrator. The implementation was completed in less than two weeks.

* A leading provider of pre-paid debit cards that implemented Guardium to monitor privileged insiders and document compliance with the Payment Card Industry (PCI) Data Security Standard.

* A major Blue Cross-Blue Shield organization that chose Guardium's solution to strengthen security for its health and financial data.

* A $1.1 billion, NYSE-traded energy company that selected Guardium to demonstrate SOX compliance and enforce change control policies for critical databases.

* A global financial services company with four heterogeneous data centers managed by IBM Global Services, that is using Guardium's solution to secure more than 100 databases on all major platforms (IBM DB2, IBM Informix, Oracle, Microsoft, and Sybase).

* A Managed Systems Provider (MSP) with a 24x7 data center that implemented Guardium to provide real-time database security and fine-grained auditing for SAP, PeopleSoft, Oracle, and other enterprise environments.

In a presentation entitled "Keeping Regulators and Customers Happy With Data Security," presented at Gartner's IT Symposium, October, 2006, Rich Mogull, Gartner research vice-president stated, "Database activity monitoring is one of the most promising new categories of data security and one with particular appeal to internal and external auditors."

According to Gartner, "Database activity monitoring tools observe all activity within a database, record this activity in a secure repository and generate instant alerts for unusual activity O Some database activity monitoring tools can even block known bad activity or hacker attacks, and a few are adding application-level monitoring capabilities." (Gartner, "Top Five Steps to Prevent Data Loss and Information Leaks" by R. Mogull, July 12, 2006.)

2006 Momentum

Six distinct areas of success allowed Guardium to pull further ahead in the database activity monitoring and security market during 2006:

* Aggressive growth. Guardium nearly tripled bookings, while closing multiple deals valued at more than $800 thousand each.

* Product innovation. Guardium shipped a series of major new product capabilities in 2006, including:

         -- The Data Privacy Accelerator, a portfolio of
            pre-configured policies, real-time alerts, and audit
            reports tailored to support data privacy laws and
            prevent theft of personally identifiable
            information (PII).

         -- Application-level monitoring for multi-tier
            applications such as Oracle E-Business Suite,
            PeopleSoft, J.D. Edwards, and in-house applications.

         -- New IBM, Oracle, Microsoft, and Sybase platforms
            supported, including DB2 on IBM mainframes and Informix.

* Global expansion. With 13 new reseller partnerships signed in 2006, Guardium greatly expanded its footprint in Europe, Asia, and South America as well as in the U.S. The company also strengthened its EMEA operation by opening an EMEA HQ office in the U.K. early this year.

* Industry recognition. Forrester Consulting published a commissioned case study showing an ROI of 55 percent and an 11-month payback for an NYSE-traded company that implemented Guardium's solution to improve database security and comply with SOX auditing requirements. Guardium was also named Gold Winner by SQL Server Magazine in the 2006 Editors' Choice Awards, as well as a finalist for the 2006 MITX Technology Awards. In addition, the company achieved IBM "Advanced Industry-Optimized" Status for financial markets and continued its work with IBM's prestigious Data Governance Council.

* Market Awareness. The company held a series of half-day "Best Practices" seminars with Gartner industry analysts that generated over 700 registrations from CXOs and IT security, data management, auditing, and privacy and compliance managers. The series included a seminar organized jointly with IBM, entitled "Best Practices for Data Security and Data Governance," that was held in New York's financial district.

* Blue-chip backing. Cisco Systems became a strategic investor in May, joining Ascent Venture Partners, Cedar Fund, Stage One Ventures, and Veritas Venture Partners in a $6.3 million round. The new round brought total equity investment in the company to $21 million.

About Guardium

Guardium, the database security company, develops the most widely-used solution for database activity monitoring, security and auditing. Founded in 2002, Guardium was the first company to address the core data security gap by delivering a practical, appliance-based platform that both protects databases in real-time and automates the entire compliance auditing process. The company's blue-chip customer base includes organizations in all major industries and geographies.

Guardium's investors include Cisco Systems and leading venture capital firms. The company has partnerships with IBM, EMC, HP, Microsoft, Oracle, and Sybase and is a member of the Data Governance Council.