Counterpane Internet Security Strengthens Management Team

Paul Stich Assumes Role of President and CEO to Help Counterpane Break Into its Next Stage of Growth

CUPERTINO, Calif., August 13, 2003 - Counterpane Internet Security, Inc., the leader in Managed Security Services, today announced that Paul Stich, formerly president and chief operating officer, has 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. In Paul's new role, he will focus on expanding the company's portfolio of Managed Security Services and driving international expansion with a specific focus on sales and business development, as well as on strengthening customer and partner relationships.

"Over the past four years, my predecessor Tom Rowley has done a remarkable job helping Counterpane define the Managed Security Monitoring market and placing the company in a unique position for growth in today's economy," said Paul Stich, president and CEO of Counterpane. "I am excited to take on this new role and to help Counterpane build on its recent momentum as the single source provider of network security."

"Paul's transition to CEO has been a part of our long-term plan to expand our portfolio of services and delivery capabilities," said Tom Rowley, chairman of Counterpane. "We've experienced tremendous growth this year and Paul's experience growing companies will bring Counterpane to the next level and help us to increase the value we provide to our clients."

Before joining Counterpane, Paul was president and CEO of Peak XV Networks, a global network management and engineering firm. Paul's first entrepreneurial success was as co-founder and CEO of Groundswell, a premier Internet consulting firm. Under his leadership, the company grew from 3 to over 225 consultants in five offices across the country. Prior to starting Groundswell, he was a vice president at IBM Global Services, where he was responsible for the telecommunications, media, entertainment, and utility industries for North and South America. Before that, he was a partner at KPMG Consulting, in charge of the National Telecommunications practice.

"As security threats increase and managing security systems becomes more complex, companies are increasingly looking towards outsourcing their security needs in order to gain peace of mind and focus on their core businesses," said Bruce Schneier, founder and CTO of Counterpane. "Counterpane has evolved to meet the ever-expanding needs of its clients and Paul has already played a key part in making this happen."

About Counterpane

Counterpane is the recognized leader in Managed Security, providing clients a single source for complete network security. Only Counterpane guarantees protection of clients' critical assets through a combination of the industry's most comprehensive and proven monitoring technology, and the unmatched expertise of its security experts working around the clock and around the globe. Counterpane's unique level of protection is based on data from hundreds of networks spanning 32 countries, and further extended with Counterpane's Global Enterprise Protection Suite of complementary managed security services including Vulnerability Scanning, Device Management, Active Response and Security Consulting Services. Counterpane eliminates clients' security worries so they can focus their attention on their business. The company is privately held and headquartered in Cupertino, CA.

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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.