Sygate Secures $17.5 Million in Up Round Funding; Builds On Stellar Success With Another Record Quarter and Major Customer Wins

The Leader in Enterprise Security Solutions Gains Momentum, Adding Ahold USA to Customer Roster that Includes World's Largest Companies

FREMONT, Calif.-Nov. 25, 2002 -

Sygate Technologies, the market leader in centrally managed enterprise endpoint security solutions, announced today it has received $17.5 million in funding in a strategic round led by Trident Capital, with further participation by Trinity Ventures, meVC Draper Fisher Jurvetson Fund I (NYSE: MVC), and CIR Ventures. Collectively, these investment partners represent portfolios that include industry notables such as Qualys, MapQuest, Extreme Networks and Interwoven. They have invested in Sygate because of its unique vision, strong product and technology, seasoned management team and demonstrated ability to execute. These factors enabled the company to achieve record revenues for the quarter ending September 30, 2002, with recent customer wins including Ahold, a leading worldwide food retailer and foodservice operator with annual revenues of over $35 billion dollars.

"We are very impressed with Sygate as it builds on its reputation for innovative products that address the absolute fundamental need for security in today's enterprise. With technology that starts with an enterprise-class centrally-managed firewall, and extends to provide centralized control and enforcement of security policies for all points in the corporate network, Sygate has assumed a leadership position in the highly competitive field of security software," said Peter Meekin, Managing Director Trident Capital. "Based on the strength of its product, management team, and brand-name customers, we are confident that Sygate will continue to lead the market and will achieve further financial and technological success."

"Trinity Ventures has a thesis-driven investment style," said Tom Cole, General Partner Trinity Ventures. "Centrally-managed enterprise security has been a focus area for us, and, after evaluating several companies around the space, it was clear that Sygate had the strongest vision, coupled with the most innovative, scalable product. We're delighted to have become an investor in the company and are excited about its tremendous potential."

Enterprise Security Solution For Today's and Tomorrow's Environments

Sygate Secure Enterprise has secured two thirds of the commercially managed endpoint security market through its ability to ensure that every network end-point is protected. It's agent-based technology learns user and application behavior, protecting against known and future unknown attacks through its ability to instantly define and enforce policies that ensure end user devices are secure before they are granted network access. With Sygate, security point products such as anti-virus and intrusion detection software are maintained and configured according to centrally managed policies, enabling organizations to maximize legacy security investments. Its advanced product architecture uniquely offers the ability to dramatically increase enterprise security to a whole new level upon deployment, and allows for incremental deployments of more sophisticated network protection as new technologies are implemented into the network infrastructure.

"The security concerns surrounding the continued expansion and opening of corporate networks is a significant issue and validates the tremendous growth potential for Sygate," said John De Santis, CEO and president, Sygate. "This strategic round of funding will enable us to build on the momentum we've enjoyed, to increase investments in development, sales, marketing and customer support, and stay steadfast on a clear path to profitability."

Analyst Validation

" Sygate was the first company to compete directly in the commercial managed segment of the market," said Jason Wright, Industry Analyst and Program Leader, Security Technologies, Frost & Sullivan. "Some other competitors had menial deployment and policy configuration capabilities in 2000, but there was little comparison to the full policy creation and management capabilities of the Sygate solution. With this first mover advantage comes extensive experience and product development. A final and most important first mover advantage is the ability to capture significant market share. Sygate commanded almost two thirds of the commercial managed endpoint security market in Q2, 2002."

"Security managers certainly recognize the benefits of deploying remote access, mobile, and other connectivity options. What keeps them awake at night is the current lack of control over who takes advantage of that connectivity and how it is used," said Mark Bouchard, Senior Program Director, META Group. "All too often, security policies that outline in detail how those connectivity options should or shouldn't be used do little more than sit in a drawer, because they aren't effectively enforced. An enterprise-class endpoint security solution gives customers a way to gain control of this difficult area by automatically enforcing policy, eliminating exposures throughout the network, and protecting valuable investments."

"Security managers certainly recognize the benefits of deploying remote access, mobile, and other connectivity options. What keeps them awake at night is the current lack of control over who takes advantage of that connectivity and how it is used," said Mark Bouchard, Senior Program Director, META Group. "All too often, security policies that outline in detail how those connectivity options should or shouldn't be used do little more than sit in a drawer, because they aren't effectively enforced. An enterprise-class endpoint security solution gives customers a way to gain control of this difficult area by automatically enforcing policy, eliminating exposures throughout the network, and protecting valuable investments."

About Trident Capital

Founded in 1993, Trident Capital is a venture capital firm dedicated to helping outstanding entrepreneurs build world-class information technology companies. Trident Capital has four offices throughout the United States and $1.4 billion under management. The firm is currently investing its fifth fund, which has committed approximately 10 percent of its $519 million. To find out more, visit www.tridentcapital.com.

About Trinity Ventures

Founded in 1986, Trinity Ventures (www.trinityventures.com) is a value-added investor that provides capital, networks and resources to early-stage software, communications, and enterprise systems companies that offer critical infrastructure and services. Trinity's focus is to accelerate growth and improve the probability of long-term success for the companies in its portfolio by being an active, accessible partner. With more than $1 billion under management, Trinity Ventures has a proven track record of working in close collaboration with entrepreneurs to build lasting companies.

About MVC

MVC was formed to provide individual investors with the opportunity to invest in venture capital, a historically top-performing asset class previously open only to high-net-worth individuals and institutional investors. The fund's investment objective is long-term capital appreciation from venture capital investments in information technology companies, primarily in the Internet, e-commerce, telecommunications, networking, software, and information services industries. Recently, the fund added a venture lending component to complement its core focus on making venture equity investments. Additional information on the fund (meVC Draper Fisher Jurvetson Fund I) and its investments may be obtained by visiting www.mevc.com.

About CIR Ventures

CIR Ventures is an early-stage technology venture capital fund sponsored by CIR Group (Milan:CIRX), the industrial holding company of the De Benedetti Group and one of Italy's largest conglomerates. CIR Ventures invests in enterprise and communication software and services companies located primarily in California and Italy. CIR Ventures adds value by leveraging contacts and synergies of CIR Group. For more information, please visit CIR Ventures at www.cirventures.com.

About Sygate Technologies, Inc.

Sygate is a leading provider of enterprise-focused security policy enforcement solutions. By focusing on policy and proper user behavior, Sygate provides IT management with the infrastructure to maintain an unbroken chain of control. Sygate's solutions protect corporate networks from intrusion, eliminate the ability of attacks to gain control of corporate information, enforce safe behavior on all endpoints, and achieve compliance with enterprise security policy. Sygate Technologies, Inc. is a privately held company headquartered in Fremont, Calif. For more information, please visit www.sygate.com or call 510-742-2600.


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