Counterpane Internet Security Wins Prestigious Red Herring 100 Award

Leading Managed Security Services Provider Recognized as One of the Companies Driving the Future of Technology

MOUNTAIN VIEW, Calif., May 19, 2004 - Counterpane Internet Security, Inc., the leader in managed security services, today announced it has been selected for the 2004 Red Herring 100, a list of the 100 private companies that are impacting the market through their innovation, technology, strategy, and leadership. Counterpane was chosen from a group of 200 finalists following consultations with industry experts and careful examination of over 600 private companies' business models, financials, and management teams.

"It is an honor to be selected for this list that not only recognizes technical achievements, but the ability to generate revenues, establish a strong customer base, and industry partnerships, which reflect the reality of survival in today's marketplace," said Paul Stich, CEO of Counterpane. "Counterpane pioneered managed security monitoring over five years ago and has since taken it to a new level to provide our customers with a single source for network security. We have experienced tremendous growth of 285 percent over the past year as more companies are compelled to turn to outside experts to manage increasingly complex technologies and network attacks more cost effectively. In 2004, Counterpane will continue to focus on simplifying network security concerns so organizations can focus on running their business."

The Red Herring 100 represents leaders in the software, communications, computing, entertainment & media, security, services, energy, and biosciences markets. This year's selection process was designed to reflect qualitative measurements and quantitative business metrics, including revenues, a strong customer base, equally strong industry partnerships, ability to execute, and commitment to research and development. Red Herring considered companies from 10 countries across the globe, including China, Japan, Israel, the U.K., and Germany.

"At the Red Herring we have the opportunity to meet the best and brightest technology companies that are transforming current markets and creating new ones," said Alex Vieux, publisher of Red Herring. "The Red Herring 100 is our annual list of the most promising private companies. Like Google, eBay, and other previous Red Herring 100 alumni, these 100 have the potential to become the next titans of technology."

In addition, Counterpane CEO Paul Stich will be presenting at the Red Herring Spring Conference on Thursday, May 20 at 12:50 p.m. PT. He will provide an overview of the company, its services, opportunity, and outlook moving forward.

About Counterpane

Counterpane is the leader in Managed Security Services, providing global enterprises with the highest level of corporate IT asset protection in the industry. Counterpane alleviates security and regulatory compliance concerns by transforming the challenges posed by deploying complex, global enterprise networks into strategic business advantage. The Counterpane Enterprise Protection Suite™ is a sophisticated suite of scanning, management and consulting services based on Counterpane's unparalleled Managed Security Monitoring service. Combined with its renowned security analysts and global visibility, Counterpane simplifies security by providing a single source for protection and compliance. The company is privately held and headquartered in Mountain View, Calif.

About Red Herring

Red Herring, Inc., founded in 1993, is a media company whose mission is to cover innovation, technology, financing and entrepreneurial activity. Its staff of award-winning journalists tell readers what's first, what matters and most importantly, why. Red Herring is dedicated to thorough research, relevant metrics deep financial analysis, in-depth reporting, crisp writing and thoughtful debate. We are a skeptical, intelligent and trustworthy source of information in technology business. Our primary obligation is to provide the most relevant, honest and independent information and analysis to our audience, with the conviction that an exceptional editorial product is the best catalyst for success and the best way to serve our advertisers and investors. Our content is original, compelling and actionable for industry executives and entrepreneurs. A privately held company, Red Herring, Inc. is headquartered in Mountain View, California. For more information visit http://www.redherring.com.

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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.