Counterpane Internet Security Positioned in Visionary Quadrant in Managed Security Services Magic Quadrant

Technology Investment, Breadth of Services, and Security Management Processes Are Key Factors for Visionary Quadrant Position

MOUNTAIN VIEW, Calif, August 6, 2004 - Counterpane Internet Security, Inc., the leader in managed security services, today announced that market research firm Gartner, Inc. has named Counterpane as a Visionary in its July, 2004 report titled "Magic Quadrant for MSSPs, 1H04." The Magic Quadrant evaluates vendors on completeness of vision and ability to execute, and uses selection criteria based on vendor and product capabilities, breadth and depth.

"We believe that Counterpane is driving the innovation of the managed security market through the combination of our exclusive focus on security services, security monitoring and management expertise," said Paul Stich, president and CEO of Counterpane. "This is reflected in our new business growth over the past year and the deep commitment to our customer base which is reflected in Counterpane's high retention rate. Our vision is to capitalize on the market dynamics of increased technology change, attack complexity, and government regulations that make outsourcing security to Counterpane the safest choice and most cost-effective way to address today's security requirements."

According to Counterpane, the distinguishing features of its services include vendor agnostic monitoring of over 300 data sources ranging from security devices such as firewalls, intrusion detection (IDS) and intrusion prevention (IPS) systems to sensors such as host-based IDS/IPS, server OS, and applications. In addition, the Web Portal offers customers real time visibility into the state of their security infrastructures, regulatory compliance assurance, and real time monitoring and analysis of global security events.

Gartner uses a variety of criteria to evaluate vendors on their ability to execute and the completeness of their vision. Completeness of vision is based on mind share and ability to influence industry directions, R&D investment in developing more-efficient technologies, breadth of services, security management processes, device management technology and a secure web-based portal. According to Gartner Visionaries have a clear vision of market direction and are focused on preparing for that, but they can still improve in terms of optimizing service delivery.

About Counterpane Internet Security

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.

Magic Quadrant Disclaimer

The Magic Quadrant is copyrighted 26 July 2004 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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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.