Leading Internet Filtering and Reporting Company Delivers Technology Innovation and Expands Customer Base During Strong First Half

ORANGE, Calif. – October 1, 2007 – 8e6 Technologies, the leading independent provider of Web filtering and insider threat management solutions for mid-size to large enterprises, today announced record growth for the first half of 2007, marked by a market-leading 38 percent increase in bookings over the same period in 2006. 8e6 also experienced a substantial increase in new customer acquisition, adding almost 200 customers and nearly half a million seats in the first six months of the year. In addition, the company added Luis Curet, formerly senior vice president at ClearPath Networks, to lead 8e6’s sales team.

8e6 experienced remarkable growth and recognition during the first half of 2007 as proven by the following financial and operational highlights, including:

•  Record growth in 2007: Bookings in the first half grew 38 percent from 2006, a figure representing growth much higher than the industry average. The second quarter of 2007 was the largest in company history, with growth of 55 percent compared to the second quarter of 2006.
  
• Industry-leading seat-per-customer ratio and growing market share: 8e6 gained significant market share since January. 8e6’s seats-per-customer ratio continues to lead the industry with an average of over 4,000 users per customer.
  
• Executive team addition: The company made a substantial addition to its management team with the hiring of Luis Curet as vice president of sales. In the past, he has held executive positions at Rainbow Technologies and IBM. Curet will continue to grow 8e6’s sales initiatives and accelerate penetration in new markets.

Strong Customer Growth
Since June of 2006, total seat count has risen 25 percent to 6.3 million and the total number of customers has grown 26 percent to 1,541. With an average number of over 4,000 seats per customer, 8e6 continues to be the leading choice among larger enterprises by having the most scalable filtering solution on the market.

The company closed significant contracts in the first half of 2007, including leading enterprise customers, and 8e6 also acquired a number of large school districts, including Orange County Department of Education, Loudoun County Public Schools, Winston-Salem/Forsyth County Schools and Scottsdale Unified School District.

Technology Innovation
8e6 Technologies continues to develop industry-leading technology for the education and enterprise markets. In the first half of 2007, the company announced the 8e6 ProxyBlocker, a dedicated appliance designed to supplement existing URL filtering and protect against the growing use of Web-based proxy and anonymizer use, as well as instant messaging and peer-to-peer network use in schools. 8e6 ProxyBlocker uses 8e6’s unique Intelligent Footprint Technology, the pattern matching system already built into 8e6's R3000 Internet Filtering appliance, to specifically stop students from using anonymous proxies to access inappropriate sites not allowed by their school districts. The 8e6 ProxyBlocker, developed first for the growing problem of Web-based proxy use in schools, has now been customized and made available for enterprise use.

Third-Party Endorsements
8e6 continues to be recognized as a leader in technology and innovation in the Internet filtering and reporting industry. SC Magazine named the 8e6 R3000 Internet Filter and Enterprise Reporter 4.0 a “Best Buy” in the magazine’s February 2007 competitive review. The evaluation, which examined solutions from 10 Internet filtering vendors, declared 8e6 Technologies’ solution the best among its competitors.

According to Gartner, "The traditional URL filtering vendors remain the best choice for scalable, granular Web usage reporting, especially for larger organizations."¹

In March, the Technology Council of Southern California named 8e6 Technologies a finalist for the Council’s “Network and Security Company of the Year.” The awards, now in its 13th year, were presented to honor individuals and companies that have made extraordinary contributions to the growth of Southern California as a center for technological innovation.

Lastly, OC Metro in June named 8e6 as one of the “Best Companies to Work For” in Orange County, Calif. to honor the company for its company culture and commitment to work-life balance.

“2007 so far has been a banner year for 8e6 in terms of industry adoption, revenue and customers,” said George Shih, CEO of 8e6 Technologies. “Our phenomenal growth clearly confirms that the market continues to seek out an appliance-based, highly-scalable Web filtering, reporting and insider threat management solutions with the capacity to address emerging threats such as Web-based proxies. We will continue our focus on developing innovative solutions so that we may continue this level of growth into 2008 and beyond.”

About 8e6 Technologies
8e6 Technologies is the leading independent provider of Web filtering and insider threat management solutions for mid-size to large enterprises, protecting millions of users worldwide. The company's award-winning appliance suite requires no additional infrastructure or software to install, resulting in the lowest total cost of ownership on the market. 8e6 is recognized for its real-time analysis, reporting capabilities and unmatched forensics that reduce security, legal and compliance risk. The company's solutions are customizable to meet individual customer requirements, yet are powerful enough to meet the performance demands of the largest corporations in the world. A Web filtering pioneer since 1995, the company maintains headquarters in Orange, California, and has a network of channel partners worldwide. For more information, please call 888.786.7999 or visit www.8e6.com.

1) Gartner, Inc., "Magic Quadrant for Secure Web Gateway, 2007" by Peter Firstbrook, Lawrence Orans and Arabella Hallawell, June 4, 2007