Workplace Web Abuse Costs Corporate America $85 Billion This Year, Reports Websense Inc.; Internet Abuse Continues to Increase, Jumps 35 Percent Year Over Year.

Business Editors/High-Tech Writers

SAN DIEGO--(BUSINESS WIRE)--Nov. 12, 2002

Internet misuse at work is costing American corporations more than $85 billion annually in lost productivity, according to employee Internet management (EIM) software company Websense Inc. (Nasdaq:WBSN).

Workplace Internet access has grown dramatically nationwide this year, resulting in more than 70 million U.S. employees accessing the Web at work, according to Dataquest, a division of Gartner Inc. However, as Web use becomes increasingly engaging and interactive, workers are spending more office time surfing the Net for personal reasons.

According to a recent Websense/Harris Interactive survey, employees admitted spending 1.5 hours per week visiting non-work-related Web sites in the office. This time spent "cyberslacking," multiplied by the average U.S. salary, as reported by the U.S. Bureau of Labor Statistics, accounts for the multibillion dollar crisis facing American businesses. In contrast to employees, HR managers report that workers spend 8.3 hours - more than one entire workday - accessing non-work Web sites each week.

"Employee Internet misuse is a critical business issue for corporations. While the Web has long been hailed as a productivity tool, this misuse in some cases offsets the productivity benefits of Internet access," said Andy Meyer, vice president of marketing for Websense Inc.

"Companies need heightened productivity during tough economic times, but instead of focusing on tightened budgets and increased workloads, many employees are trading stocks, shopping and tuning into Internet radio."

The Websense productivity loss figure comes fresh on the heels of new data released by the U.S. Dept. of Labor stating that the number of hours Americans spent working fell at an annual rate of 2.5 percent in the second quarter of 2002. With employees spending fewer hours at the workplace, office time spent cyberslacking may be more detrimental to business output, forcing organizations to take action.

"In light of the productivity drain involved, employers may be tempted to invoke Draconian measures to curb personal surfing - or worse, eliminate worker Web access completely," said Lewis Maltby, president of the National Work Rights Institute. "Companies need to realize, however, that there are software solutions available to manage personal surfing and keep an eye on the bottom line. Once these solutions are implemented, Internet access can be restored as a productivity tool within organizations."

Websense Enterprise EIM software enables companies to effectively and accurately manage employee Internet use. In addition to improving worker productivity, the software conserves network bandwidth resources and reduces legal liability - important business considerations during a recession. Organizations can benefit from Websense Enterprise on a per user, per year basis for less than one hour's salary of a clerical employee. To calculate how much casual Web surfing at work costs typical companies, please visit http://www.websense.com/products/why/wscalc.cfm.

About Websense Inc.

Websense Inc. (Nasdaq:WBSN) is the worldwide leader of employee Internet management (EIM) solutions. Websense Enterprise software enables businesses to manage how their employees use the Internet, improving productivity, conserving network bandwidth and storage costs, and mitigating legal liability. Ranked the highest quality database in a recent test of EIM products, Websense delivers the most effective and comprehensive solution in the industry.

Founded in 1994, Websense serves more than 17,800 worldwide customers, ranging in size from 100-person firms to global corporations. These include more than half of the Fortune 500, approximately one-third of Japan's Nikkei 225 and half of the UK's FTSE 100, encompassing more than 13 million customer seats, pre-paid on a subscription basis. Websense has strategic technology relationships with Blue Coat Systems, Check Point, Cisco, Macrovision, Microsoft, NetScreen, Network Appliance, SonicWALL, Tumbleweed and others. For more information, visit www.websense.com.