Press Release

Lancope Dominates Global Network Behavior Analysis Market in 2007

Atlanta, January 29, 2008 — Lancope, Inc., the provider of StealthWatch, the most widely used network behavior analysis (NBA) and response system, today announced continued record growth and momentum in 2007, having increased sales by 100 percent for the second consecutive year. 2007 was marked by a 35 percent increase in new enterprise customers, who selected StealthWatch for NetFlow™ and sFlow®-based anomaly detection and network performance monitoring. Lancope’s StealthWatch protects over 30 million hosts worldwide and several hundred enterprise customers — more than all direct competitors combined.

Lancope’s 2007 milestones and highlights include:

  • Second consecutive year of 100 percent sales growth, marked by more than double the number of six-figure deals in 2006

  • Tripled international revenues and attracted over 50 partners throughout EMEA and Asia

  • Increased customer base by more than 35 percent with several marquis customer acquisitions, including AirTran Airways, Cancer Research UK, Grafisch Lyceum Rotterdam, Siemens for the BBC, WildBlue Communications and Federal U.S. Government agencies

  • Launched StealthWatch System versions 5.6 and 5.7 and the Flow Replicator, the first commercially available virtual UDP switch enabling broad utilization of NetFlow and sFlow data

  • Awarded two U.S. patents for groundbreaking flow-based detection of network intrusions and network port profiling

  • Appointed prominent industry leaders from PepsiCo, Prudential Insurance and the Department of Homeland Security to the Lancope Advisory Board

  • Added StealthWatch to the U.S. Army Information Assurance Approved Products List (AIAAPL)

“2007 was a breakthrough year for Lancope in terms of record earnings, substantial customer wins, widespread StealthWatch adoption and continued market leadership. This rising momentum validates our flow-based approach to securing and managing the network, which we have been advocating for years,” said Harland LaVigne, president and CEO of Lancope. “Increasingly, StealthWatch is recognized as the primary technology to transform NetFlow and sFlow into actionable intelligence that enables enterprises to not only resolve network incidents quickly but also streamline network management.”

"StealthWatch has emerged as one of the leading NBA solutions, offering benefits for multiple groups within the IT organization. Many enterprises that adopt NBA technology for one purpose often expand the use of the technology to other areas,” says Phil Hochmuth, senior analyst with the Yankee Group. “Organizations may start using flow analysis for performance monitoring, then later find it also works as a network security platform, augmenting IPSes or NAC. From there, organizations may push NBA use further as a regulatory compliance tool.”

A recognized market leader, Lancope kicked-off 2007 by receiving the 2007 Global Excellence Award in Network Behavior Analysis from Info Security Products Guide for its StealthWatch System. As further testament to its superior technology, Lancope achieved a 99 percent customer satisfaction rating in its annual customer survey and enjoys consistently high maintenance renewal rates, which are indicative of its unrelenting commitment to delivering excellent customer support and quality solutions.

Throughout 2007, Lancope executed numerous market leadership initiatives. For example, the company proactively participated in several industry organizations, including the Trusted Computing Group, PCI Security Standards Council and EDUCAUSE, to help shape the evolving standards for network and security solutions for fellow technology vendors, enterprises and academic institutions. In addition, Lancope expanded partnerships with Cisco Systems and Foundry Networks and developed integrations with fellow best-of-breed security solutions, including 3Com’s TippingPoint’s IPS and Bradford Networks for network access control.

 About Lancope

Lancope®, Inc. is the provider of the StealthWatch™ System, the most widely used network behavior analysis (NBA) and response solution that unifies behavior-based anomaly detection and network optimization capabilities to protect critical information assets and ensure network performance by preventing costly downtime, repair and loss of reputation. StealthWatch streamlines security and network operations into one process, reduces time and resources, and eliminates the costs and complexity associated with non-integrated point products. Both OPSEC and Common Criteria-certified, StealthWatch received the 2007 Global Excellence Award in NBA and was named Best of Show at Interop2006. Defending the networks of Global 2000 organizations, academic institutions and government entities, StealthWatch protects hundreds of enterprise customers worldwide, more than all direct competitors combined.

A contributing member of the Trusted Computing Group, Lancope also partners with fellow best-of-breed solution providers through its Technology Alliance Program, which includes Cisco Systems, Foundry Networks, IBM Tivoli, Check Point, TippingPoint, ArcSight and A10 Networks. Lancope is a privately held, venture-backed company headquartered in Atlanta, Georgia. For more information, call 888-419-1462 or visit www.lancope.com.