MessageLabs Recognized as a Leader in Secure Content Management Services and Anti-Virus Services by Prominent IT Market Research Firm.

NEW YORK -- MessageLabs, the leading provider of managed email security services to businesses, has been recognized by IDC as a leading provider of Secure Content Management and Anti-Virus services based on 2003 revenue estimates featured in two recently published reports.

According to an August IDC report, IDC estimates that MessageLabs' revenue increased 83.3% in the Secure Content Management (SCM) market from 2002 to 2003.(1) Significant revenue growth was also noted in the worldwide SCM services market and the anti-virus managed and hosted services market.

For 2003, MessageLabs was among the leaders in the SCM services market. With worldwide revenue for the SCM services market growing 56% over 2002, MessageLabs was able to capture 25.1% of the market share. According to IDC, managed services provide companies with key benefits such as ease of deployment, management and updates.

IDC reports that major information security threats, the explosive growth of spam, and corporate deadlines for compliance with government regulations fueled the need for Web and messaging security solutions.

"Over 9,000 businesses worldwide trust MessageLabs with their email security. IDC's reports add further validation to the tremendous growth and opportunity in the sector and MessageLabs' position as a leader that's maximizing this opportunity," said Jos White, president of MessageLabs Americas. "Our substantial market share growth from 2002 to 2003 clearly demonstrates the move toward proactive managed services that have financial and technical advantages over software and gateway appliances."

Another IDC report published in August on the worldwide Anti-Virus market(2) highlighted MessageLabs' position in the anti-virus managed and hosted services industry. In 2003, the anti-virus managed and hosted market services market reached $88 million in revenue, representing a 35% increase over 2002. IDC reported that MessageLabs has a 22.6% of the worldwide managed anti-virus services market.

MessageLabs attributes its strong growth--in revenues, customers and employees--to the ongoing demand for world-class managed security services that stop email threats from reaching enterprise networks and that help enterprises protect and control their operations and reputation. The company's channel partner program, which features more than 600 partners worldwide, has also helped MessageLabs become a fast-growing company. Partners contributed more than 50 percent of MessageLabs' revenues in fiscal year 2004, ended July 31, 2004.

IDC expects worldwide revenue for the SCM market to reach $4.2 billion in 2004 with a market forecast increase to $7.5 billion in 2008 for a 16.9% compound annual growth rate (CAGR) for the period from 2003 through 2008. Included in IDC's definition of the SCM market is anti-virus, Web filtering, and messaging security solutions such as anti-spam services. Additionally, IDC forecasts the anti-virus software market will reach $4.85 billion in 2008, representing a CAGR of 12.5%.

Following the principle that the most effective security solutions sit outside the corporate network and can eliminate inbound and outbound email threats, MessageLabs' centralized managed service model draws on significant economies of scale to give organizations high-quality services with complete interoperability with existing systems, 24x7 service and support, email disaster recovery, harvesting and denial of service protection, while eliminating the need for additional hardware or software.

Using a secure, redundant global infrastructure and multi-patented proprietary technology, MessageLabs scans email at the Internet layer to stop threats before they ever reach corporate networks. This model allows MessageLabs to offer a 100% Service Level Agreement against all known and unknown email viruses.

About MessageLabs

MessageLabs is the leading provider of managed email security services to businesses based on market shares and revenue, according to the Yankee Group. The company offers industry-leading protection to more than 9,000 businesses around the world from email threats such as viruses, spam and other unwanted content before they reach their networks and without the need for hardware or software. Powered by a global network that currently spans 13 data centers in the United States, the United Kingdom, Germany, the Netherlands, Australia and Hong Kong, MessageLabs scans millions of emails a day on behalf of clients such as The British Government, The Bank of New York, Bertelsmann, Bic, CSC, Conde Nast Publications, EMI Music, Diageo, Orange, Random House, SC Johnson and StorageTek. The company has more than 600 channel partners, including BT, Cable & Wireless, CSC, IBM, MCI and Unisys. For more information on MessageLabs and its industry-leading email security and management services, please visit www.messagelabs.com.

(1) IDC, Worldwide Secure Content Management 2004 - 2008 Forecast Update and 2003 Vendor Shares (#31598, August 2004)

(2) IDC, Worldwide Anti-Virus 2004-2008 Forecast and 2003 Competitive Vendor Shares (#31737, August 2004)