New Account Bookings Up 141% and GAAP Revenue Grew 29% Over First Half of Year

ORANGE, Calif. – August 2, 2006 – 8e6 Technologies, a security company dedicated to Internet filtering and reporting, today announced record growth in the first half of 2006 marked by substantial increases in bookings over the first two quarters of 2005, a continued 94 percent customer renewal rate and very strong growth in new business. In addition to these achievements, 8e6 Technologies added new team members in all areas of the company, including the addition of Gary Ulaner, former group product manager at Symantec, to head up 8e6’s product management team.

During the first half of 2006, 8e6 Technologies continued to see increased demand for its Internet filtering and reporting technologies, as evidenced by the following key financial, product and operational highlights:

• Significant growth in 2006: Bookings grew 57 percent in the first quarter and 68 percent in the second quarter, with an overall net growth of 64 percent in the first half of the year. 8e6’s significant growth dramatically exceeds the Web filtering sales growth average of 16.5 percent (IDC Worldwide Secure Content Management, 2005-2009). In addition, 8e6 is well positioned to fund continued growth and product development through two lines of credit secured in 2006 with Silicon Valley Bank and Partners for Growth, providing access to a total of $5 million dollars.
  
• Exceptional customer loyalty: Customer renewals held strong at 94 percent, greatly surpassing the industry average of around 70 percent.
  
• Strong customer growth: Strong customer acquisition in both the education and enterprise markets in the first two quarters resulted in an installed base that has grown to over 5 million seats under subscription.
  
• Industry’s first remote filtering solution: Launch of 8e6 Mobile Client for remote PC and Mac laptop filtering for the education industry, with plans to launch an enterprise version in early Q3 2006.
  
• Executive team enhancements: Continued emphasis on outstanding product development and customer service as evidenced by the expansion of 8e6’s experienced product and customer management team. Additions include Gary Ulaner, formerly of Symantec, as 8e6’s director of product management, and Thomas Pfau, formerly of Rainbow Technologies as the senior manager of customer service.
  
• Facility expansion: To accommodate rapid employee growth, 8e6 added 12,000 square feet to their facility in Orange County and will continue to hire to keep pace with the growing demand for resources.
  

“We are excited about our fifth consecutive quarter of exceeding our revenue objectives and our very strong growth in the first half of this year,” said George Shih, CEO of 8e6. “With new account bookings up 141 percent and a customer renewal rate of 94 percent, we have truly set the stage for continued success and look forward to building upon this level of growth and customer acquisition in the later half of 2006 and beyond.”

"8e6's continued growth matches IDC's forecasted growth in the secure content management appliance platform," said Brian Burke, research manager for IDC's Security Products. "We expect appliances to continue to grow at nearly a 50 percent CAGR and 8e6 is well positioned to take advantage of market trends in the future."

Technology Innovation

8e6 Technologies continues to develop industry-leading technology for education and enterprise markets. In the first half of 2006, 8e6 launched a laptop filtering solution for PC and Macintosh computers, incorporating the same capabilities as its core network solution and ensuring consistency of protection both in and outside the network. 8e6’s new solution is currently only available to school districts but will soon be available for the corporate network. 8e6 Mobile Client extends the functionality of the 8e6 R3000 appliance, empowering schools to enforce acceptable Web use policies, including blocking access to inappropriate content and controversial sites such as MySpace.com, as well as known spyware and phishing sites. For ease of administration, 8e6 Mobile Client is centrally managed from the 8e6 Management Console, delivering a complete hardware/software end-to-end Web filtering solution. 8e6 Technologies is the first to offer laptop Web filtering for both PCs and Macintosh computers.

Customer Focus

8e6 Technologies’ product innovation continues to be driven by customers and their needs. During the first half of 2006, 8e6 Technologies held an education customer conference that allowed 8e6 Technologies executives to meet with up to 20 customers, incorporate their feedback into the product roadmap and learn how to better meet their needs. In the later half of the year, 8e6 will also hold an enterprise-focused customer event and will continue to develop products that meet the needs of their entire customer base.

About 8e6 Technologies

8e6 Technologies is a security company dedicated to Internet filtering and reporting. We are the only Web filtering company that uses a unique “pass-by technology” on a highly scalable appliance. Our standalone reporting appliance is easy to use and provides extremely detailed information, faster than any other product on the market. 8e6 helps protect its customers from all internal threats including spyware, malware, and Internet abuse leading to data loss and liability–while preventing bandwidth misuse. By preventing improper use of network resources and employee time, 8e6 also increases productivity and ensures regulatory compliance. Our standalone security solution achieves a dramatic reduction in the cost of hardware, subscriptions, maintenance, and support, and produces a substantially lower total cost of ownership. A Web filtering pioneer since 1995, the company maintains headquarters in Orange, California, with offices in Taipei and Beijing, as well as a network of channel partners worldwide. For more information, please call 888.786.7999 or visit www.8e6.com.