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WatchGuard Takes Top Market Share Segments

Leading Data Research Firm Reports WatchGuard as Market Leader Among Unified Threat Management Security Appliances and Firewall/VPN Appliances

Seattle, WA - December 11, 2007. WatchGuard® Technologies, a global provider of network security solutions, today announced market research results from IDC, a leading provider of global IT research and advice, that affirm WatchGuard as the #1 worldwide market share leader for Unified Threat Management (UTM) security appliances ranging from $3,000 to $5,999; second in market share for Firewall/VPN security appliances less than $999; and third in market share for worldwide UTM appliances from $1,000 to $2,999.¹

"The 'new' WatchGuard is generating a lot of interest, gaining new customers and proving its ability to deliver solid products as evidenced by their top market share positions," said Charles Kolodgy, Research Director, Secure Content & Threat Management at IDC. "As the UTM market expands from small to medium sized businesses to enterprise environments, WatchGuard is firmly positioned to build upon its foundation and grow with the market."

Growing Market Trends for Threat Management Security Appliances
Threat management security appliances are the combination of hardware, software and networking technologies in a single appliance whose primary function is to perform specific or multiple security functions. Demand for these appliances is growing among SMB and enterprise organizations. As IDC reports in its IDC Market Analysis, "World Wide Threat Management Security Appliances 2007-2011 Forecast and 2006 Vendor Shares: Still Stacking the Racks" (November, 2007), this segment, which encompasses UTM, network intrusion detection/prevention and firewall/VPN appliances, grew over 20 percent between 2005 and 2006. IDC forecasts that the threat management security appliance market will increase at a compound annual growth rate of almost 14 percent between 2007 and 2011. This translates into a total market of $6.3 billion, according to the research and advisory firm.²

UTM security appliances include multiple security features integrated into one device. To qualify as a UTM appliance, IDC states that devices must be able to provide firewall capability, network intrusion detection and prevention, and gateway anti-virus. Likewise, to meet the Firewall/VPN qualification, appliances must have general purpose filtering of network traffic and virtual private networking capabilities as their primary function. Unlike companies that specialize in routing or switching technologies, WatchGuard was founded upon and is steeped with UTM and Firewall/VPN security expertise.

WatchGuard Application Proxy Technology Completes the Network Security Profile
All WatchGuard Firebox X network security solutions utilize Application Proxy firewall technology, which is fundamentally more secure than appliances that rely on deep packet filtering alone. Deep packet filtering only inspects the bottom three-to-four layers of the OSI communication model (physical, datalink, network and transport), leaving several layers, including layer-7, the application layer, vulnerable to exploitation. By enforcing deep packet inspection in concert with Application Proxy firewall technology, WatchGuard Firebox X appliances inspect all seven layers of the OSI model, thus providing unmatched, holistic network security.

"Deep packet inspection and signature based solutions are good, but not good enough to completely counter malware, spyware and other nasties of the Internet that plague network administrators," said Eric Aarrestad, Vice President of Marketing at WatchGuard. "Because of this, WatchGuard is ever vigilant in ensuring that our customers have the most comprehensive security solutions at reasonable and justifiable price points. These factors indicate why savvy network administrators have propelled WatchGuard to be tops in market share."

About WatchGuard Technologies, Inc.
Since 1996, WatchGuard® Technologies, Inc. has been the advanced technology leader of network security solutions, providing mission-critical security to hundreds of thousands of businesses worldwide. The WatchGuard Firebox® X family of wired and wireless threat management appliances provide extensible network security, in-depth analysis, and unparalleled network visibility, management and control. WatchGuard products are backed by WatchGuard LiveSecurity® Service, an innovative support, maintenance, and education program. WatchGuard is headquartered in Seattle and has offices throughout North America, Europe, Asia Pacific, and Latin America. To learn more, visit www.watchguard.com.

¹ IDC, "Worldwide Threat Management Security Appliances 2007-2011 Forecast and 2006 Vendor Shares: Still Stacking the Racks," Doc # 209303, November 2007.
² Ibid.

WatchGuard, Firebox, and LiveSecurity are registered trademarks of WatchGuard Technologies, Inc. All other marks are property of their respective owners.