Counterpane Internet Security Announces 100% Growth Year On Year.

Business Editors/High-Tech Writers

ISSE

Symposium on Privacy & Security

COMDEX Fall 2002

CSI's 29th Annual Conference

CUPERTINO, Calif.--(BUSINESS WIRE)--Oct. 16, 2002

Continues to Grow At Record Pace, Despite Economy;

Attributes Success to Channel Strategy.

Counterpane Internet Security, Inc., developer and acknowledged leader of Managed Security Monitoring (MSM) services, today announced that while the overall economy continues its slow rate of growth, the company had another record quarter, ending September 30, with 100% growth year on year and tripled business through its Counterpane Certified Reseller (CCR) program.

"In an economic climate as tough as we're all facing, it's a great credit to the CCRs with whom we've partnered that the company continues to grow at this pace. While contract closures in general increased by 100% by comparison to the same quarter in 2001, sales through CCRs tripled for the same period," said John Bruce, Chief Marketing Officer of Counterpane Internet Security. "We signed and trained another 9 CCRs this last quarter, while our more established CCRs continue to demonstrate we're absolutely on the right track."

"Counterpane has really worked hard to get their program right, we're delighted to have been with them from the start," said Gary Fish, President and CEO of FishNet Security, Inc., in Kansas City. "Their service is a great match for our customers, I have no hesitation recommending it."

Quarterly Highlights

 -- Contract bookings increased 100% year on year, 40% quarter on quarter.  -- CCR contracts tripled year on year for the same quarter.  -- Approximately 12% of Counterpane's business in the September quarter came from outside the US.  -- The company held an International Partner Conference in Madrid Spain attended by companies from across Europe.  -- Counterpane this quarter will be giving keynote addresses at the ISSE conference in Paris, the Symposium on Privacy & Security in Zurich, COMDEX Las Vegas. The company will be presenting and exhibiting at CSI's 29th Annual Conference in Chicago November 10 - 12, 2002. 

About Counterpane

Counterpane Internet Security, Inc. is the innovator and acknowledged leader in providing Managed Security Monitoring (MSM) services. MSM combines people and technology to safeguard businesses. Working from a network of technically sophisticated Secure Operations Centers (SOCs) and using progressive analysis tools, Counterpane has built the most advanced analysis, correlation, detection, and diagnosis technology, comprising of a Sentry monitoring probe on the customer's network and the Socrates knowledge base inside the SOCs. Using this technology, Counterpane's expert Security Analysts are able to detect security incidents--both external intrusions and insider attacks--in real time, and tailor immediate, effective responses for its customers. The company is funded by Accel Partners, Amerindo Investment Advisors, Inc., Bessemer Venture Partners, Dell, Deutsche Bank, Goldman Sachs, and Morgan Stanley Dean Witter Equity Fund. Headquarters are located at 19050 Pruneridge Avenue, Cupertino, California, USA. Phone: 408/777-3600, Fax: 408/777-3601, Website: www.counterpane.com.

Note to Editors: Counterpane is a trademark of Counterpane Internet Security, Inc. All other companies, brand names or products are trademarks or registered trademarks of their respective companies.