Liquid Machines Announces Additions to Management Team; Software Industry Veterans Join Enterprise Security Vendor.

Business Editors/High-Tech Writers

LEXINGTON, Mass.--(BUSINESS WIRE)--Dec. 9, 2002

Liquid Machines Inc., a software company developing solutions for enterprise security, today announced the newest members of its management team. Arny Epstein has joined the company as chief technology officer (CTO), Ed Gaudet as vice president of product management and marketing, and Melissa Leffler as vice president of engineering.

Liquid Machines is developing a unique platform that will enable organizations to secure their information assets from both external and internal threats. Epstein, Gaudet and Leffler join co-founders Jim Schoonmaker and Mike Smith on a management team that collectively offers nearly a century's worth of experience in enterprise software and security expertise.

"Arny Epstein, Ed Gaudet and Melissa Leffler join us with an impressive track record of success in developing and marketing world-class enterprise software. They are top-tier executives with the passion and commitment to ensure our success," said Jim Schoonmaker, president and CEO of Liquid Machines. "These appointments represent another important milestone in our drive to deliver the most advanced and easy-to-use enterprise security solutions."

Epstein was most recently a co-founder and CTO of SilverStream Software, where he evaluated technical opportunities and investments and managed the technical aspects of strategic partnerships. He also provided leadership and consistency of architecture across the SilverStream product line.

Prior to SilverStream, Epstein was the CTO at Watermark Software, where he was responsible for the company's close relationship with Microsoft as well as the architecture of its highly successful product line. Prior to Watermark, Epstein was chief architect at Lotus Development Corporation, and was responsible for a number of products including LotusScript, Lotus 1-2-3/G (for OS/2) and Lotus Manuscript. With nearly 40 years of experience developing commercial software products, Epstein holds a Ph.D. in Astrophysics from MIT and, while at Harvard-Smithsonian Center for Astrophysics, contributed to the creation of data analysis techniques in the field of experimental X-ray astronomy.

Gaudet brings more than 15 years of high-tech marketing experience to Liquid Machines. Most recently, he was vice president of worldwide marketing for IONA Technologies, the leading e-business platform provider for Web services integration. At IONA he was responsible for overall corporate branding, product, partner and field marketing and corporate communications. As a member of the senior management team, he contributed to the company's overall business and operating strategies, which generated over $181 million in revenue in 2001.

Prior to IONA, Gaudet held several senior marketing, product management and business development positions in various start-up and public software companies including Empirical Software, a leading provider of end-to-end service level management solutions, Rational Software, a provider of an integrated enterprise development environment, and SQA Inc., a leader in automated testing solutions. Gaudet holds a bachelor's degree from Bentley College.

Leffler has 18 years of industry and management experience that includes delivering six award-winning product releases over the past five years for eRoom Technology, where she was vice president of engineering and hosted business. Before joining eRoom, she was vice president, applications and marketing, at Revelation Software, a provider of application frameworks, which are content-rich building blocks for horizontal and vertical markets.

Prior to Revelation, Leffler held senior management positions at Lotus Development Corporation, including director of development for the Lotus Notes ViP graphical application development environment. Earlier in her career she was a software engineer at Computer Corporation of America. Leffler holds bachelor's degrees in computer science and English from Boston University.

About Liquid Machines

Liquid Machines is developing an innovative software platform that enables organizations to secure their information assets from both external and internal threats. Liquid Machines' unique solution provides the greatest level of continuous information security without affecting the way in which end-users work. Liquid Machines is a privately held company located in Lexington, Mass., and is backed by Draper Fisher Jurvetson New England, Atlas Venture and Masthead Venture Partners. For more information, please visit www.liquidmachines.com or e-mail [e-mail].

(C) 2002 Liquid Machines, Inc. All rights reserved. The information contained in this document represents the current view of Liquid Machines, Inc. on the issues discussed as of the date of publication. Product or company names mentioned herein may be the trademarks of their respective owners.