NFR Security Raises $22.3 Million in Second Round of Funding; Global Provider of Information Security Technology to Seek Larger Slice of the Security Software Marketplace

Business Wire, April 10, 2001

Business Editors/Hi-Tech Writers

ROCKVILLE, Md.--(BUSINESS WIRE)--April 10, 2001

NFR Security, Inc. (Bloomberg Ticker: 9022Z EQUITY), a technology leader in information security systems, today announced the completion of a $22.3 million round of private equity financing.

The investment will help fuel the continued growth of NFR's sales, marketing and development activities as it further penetrates the rapidly growing security software marketplace.

Allen & Company Incorporated, Digital Bandwidth LLC, Intel Corporation, J. & W. Seligman & Co. Incorporated, and Lazard Technology Partners were the major contributors to the round, which also included a suite of private investors.

NFR chief executive officer Jack Reis said, "This is an important and impressive round of financing for the company. Over the past 12 months, we've established a meaningful foothold in the security software marketplace. This funding will allow for a more rapid expansion of our sales and marketing initiatives, and accelerate certain key development activities. We're particularly proud because of the types of firms that participated in this round of financing, its accomplishment in a highly volatile market and its testimony to past achievement and future expectations."

"Virtually all significant business and governmental organizations are so dependent upon their computer networks that they have become quite vulnerable to attacks against those networks. NFR Security, Inc. has assembled a world-class team that is developing security tools and solutions that are several orders of magnitude more sophisticated than anything previously available. We are excited to have the opportunity to participate with the NFR team in the development of this absolutely critical technology," said David Weinberg, president of Digital Bandwidth, LLC, who led the round.

About NFR Security, Inc.

NFR develops and markets a range of information security products that protect IT assets from external and internal attacks. NFR's centrally managed intrusion detection system monitors distributed resources, including networks, servers, workstations, applications, etc., and responds when suspicious activity is detected.

It also provides powerful forensic capabilities for the analysis and early detection of new threats. NFR operates worldwide via an extensive network of channel partners and direct sales. Its customers include Fortune 1000 companies, MSPs, ISPs and government, financial, healthcare and telecommunications organizations.

The company is headquartered in Rockville, Md. Further information about NFR can be found at www.nfr.com.

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