June 22, 2005

CipherOptics identified as leading innovator
in end-to-end data protection

RALEIGH, N.C., June 22 /PRNewswire/ -- Marketintelligence Research, a technology-focused industry research firm that provides coverage for emerging private companies, has released a research report on CipherOptics, a leader in high-speed IP network data protection.
The report found that protecting data while it travels over IP networks is being recognized as a critical element of network security infrastructure. Fueled by recent high-profile data protection failures at some of the world's most well-known financial institutions and also increased governmental regulation, protecting data in motion is emerging as an essential data security strategy.

According to the report, "data protection at the network layer is the foundation of all data security initiatives because it is able to protect confidential data on a network regardless of the success or failure of other security technologies." For a copy of the full report please visit www.cipheroptics.com.

"We evaluated numerous data protection approaches for IP networks, including router add-ons and VPN blades, and firewall extensions, and found an appliance-based approach like CipherOptics preferable in performance, low latency and ease of implementation," said Gavin Long, research analyst at Marketintelligence. "In fact, we found no other solution that provides an end-to-end data protection solution like CipherOptics. From encrypting storage data in motion to encrypting data over unicast, broadcast and multicast service types - we believe that CipherOptics has the leading technology."

"We are very pleased to have our approach to data protection validated by Marketintelligence," said Ron Willis, CipherOptics president and CEO. "We believe we've done something quite revolutionary with our data protection gateways and are on a path to expand data protection on the network with future products that are currently in development. CipherOptics is providing the world of IP network data protection with a new vision."

CipherOptics has been experiencing growing market acceptance. Some of the world's leading organizations, including stock exchanges, credit card companies, data-brokers, Fortune 500 technology companies, government agencies, banks and world-class financial services institutions have recognized the advantages of CipherOptics' data protection solutions. The recent major data protection failures continue to underscore the need for these solutions across multiple markets.

According to Long, in addition to the high-profile data protection failures, the recent announcement of Network Appliance's acquisition of Decru has focused even more attention to data protection. Many industry analysts believe that leading network data security companies like McData, EMC, IBM, HP, Cisco, Juniper and Nortel will be positioning themselves to capture market share in this rapidly growing market. Industry analysts look for more acquisitions during this period of high profile and exponential growth.

About CipherOptics
CipherOptics, the leading innovator of high-speed data protection gateways, protects data in motion as it travels over IP networks. With virtually no latency and robust industry-standard AES encryption capabilities, CipherOptics data protection gateways outperform router and firewall add-on solutions in total cost of ownership, performance, network transparency and ease of implementation.

The CipherOptics family of data protection gateways is field-proven in some of the most security-conscious networks in the world, and has received FIPS-140-2 Level 2 validation. We enable financial institutions, global enterprises and government agencies to secure all data in motion while maximizing maintaining full network capability and performance at a very low total cost of ownership.

Privately-held CipherOptics is based in Raleigh, North Carolina. In 2004, the company closed on Series C funding from Adams Capital Management, Kodiak Venture Partners, Origin Partners L.P. and Axiom Venture Partners L.P. For more information about CipherOptics visit the company website at www.cipheroptics.com.

Marketintelligence Research LLC provides research coverage for emerging private technology and biotechnology companies. Through rigorous market analysis and technological evaluation, Marketintelligence provides major industry players with real-time, real-world market information.

Source: CipherOptics