Counterpane Internet Security's Enterprise Protection Suite Draws Continued Customer Momentum in Third Quarter

CUPERTINO, Calif. - October 6, 2003 - Counterpane Internet Security, Inc., the leader in Network Security Services, today announced continued momentum in its third quarter of 2003. The company attributes its sales success to more customers choosing outsourced security management based on their increased understanding of the cost benefits and achievable security levels associated with round the clock service availability. The company also attributes the strong quarter to the continued enhancements and options available within its Enterprise Protection Suite of managed security services, providing customers with a single source for network security needs.

The comprehensive suite of managed security services includes the company's industry leading Security Monitoring Service and best in class Device Management, Vulnerability Scanning and Active Response. The packaged services support all major vendor technologies and capitalize on Counterpane's unique knowledge derived from continuous and real time data gathering, constantly evolving methodologies and renowned pool of security experts, backed by investments in technology development, automation, and research. Counterpane also announced that it will expand the expertise of its security experts and partners to provide Security Consulting to its customers.

Additionally in the third quarter of 2003, Counterpane announced that Paul Stich, formerly president and chief operating officer, assumed the role of president and CEO. He succeeds Tom Rowley who will continue to play a strategic and visionary role as chairman of Counterpane's board of directors. The company also continued to expand its sales reach and support globally with the opening of new sales offices in the United Kingdom and the Netherlands in order to capitalize on opportunities in the region. The company achieved sales growth in most major verticals with the most interest coming from the healthcare industry due to HIPAA compliance concerns as well as federal and state government.

"The momentum we've experienced so far this year continued into our third quarter due to the much anticipated delivery of our Enterprise Protection Suite and overall market interest in outsourcing security management," said Paul Stich, president and CEO of Counterpane. "With the expanded service offerings, we are capitalizing on the trust and reputation we've built with existing customers through our security monitoring services to identify new opportunities where Counterpane can help customers reach a higher level of security and maximize internal resources."

About Counterpane Counterpane is the recognized leader in Network Security Services, providing customers with a single source for complete network security. Counterpane mitigates network disruptions caused by both internal and external attacks, human error and regulatory compliance demands so customers can focus on running their businesses. As enterprises extend their networks to suppliers, remote offices, partners and customers around the world, Counterpane protects critical assets and optimizes network security by preventing attacks as they happen in real-time using 30,000 unique event rules developed for 300 supported devices. Counterpane's Enterprise Protection Suite of complementary managed security services includes Managed Security Monitoring, Vulnerability Scanning, Device Management, Active Response and Security Consulting Services. The company is privately held and headquartered in Mountain View, CA.

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