CyberGuard to Secure New ATM Network in Saudi Arabia; Saudi Arabian Monetary Agency Will Use Firewall/VPN Appliances from CyberGuard to Enable Secure Payment of Bills Throughout Kingdom of Saudi Arabia

Business Wire, July 29, 2004

FORT LAUDERDALE, Fla. & BRACKNELL, U.K. -- CyberGuard Corporation (Nasdaq:CGFW), the technology leader in network security, announced today that the Saudi Arabian Monetary Agency (SAMA) has selected CyberGuard's premium firewall/VPN appliances to provide the information security for a new ATM network called the SADAD Project being established in the Kingdom of Saudi Arabia. SADAD is a nationwide network that will allow citizens throughout the Kingdom to pay utility, phone and other bills securely at ATM machines. The project is a collaboration between all the banks in Saudi Arabia under the sponsorship and supervision of the SAMA.

"SAMA was one of the first to use CyberGuard security appliances in the Middle East region. They trust CyberGuard to deliver security solutions that protect their assets and their brand. We have a long-term commitment to their organization," said Andrew Clarke, vice president and managing director of CyberGuard's Europe, Middle East and Africa (EMEA) subsidiary. "While SAMA evaluated other technology offerings for this project, they chose CyberGuard appliances for their high performance, reliability, ease of management, certifications, zero vulnerability and the fact that it is a true application layer firewall - a vital element for financial organizations."

Founded in 1952, SAMA is the Kingdom's central bank. Its charter is to act as the central government bank, issue currency (paper and coin), support the value of the Saudi Riyal at home and abroad, and supervise and encourage the development of the Kingdom's banking system in both the public and the commercial sectors. SAMA is also the Kingdom's investment authority and manages the country's foreign assets, inside and outside of the Kingdom. CyberGuard has protected the security infrastructure of SAMA since 1999.

CyberGuard provides information security solutions throughout the Middle East, particularly within the Kingdom of Saudi Arabia. In 2002, Saudi Telecom Corp selected -- and began deploying -- CyberGuard firewall/VPN appliances in high availability configurations to secure their critical customer and consumer backbone networks. Other large CyberGuard customers include Saudi Arabian Airlines, the National Commercial Bank (NCB) in Jeddah, as well as other banks and government agencies in Riyadh.

The SADAT Project, which calls for 14 "high availability" pairs of firewall appliances, will be provided through CyberGuard solution provider MDS-Arabia Ltd.

About CyberGuard Corporation

CyberGuard Corporation (Nasdaq:CGFW), the technology leader in network security, provides advanced Total Stream Protection(TM) solutions that protect the critical information assets of Global 2000 companies and governments worldwide. CyberGuard offers a broad line of scalable high performance firewall/VPN appliances, the Webwasher(R) suite of enterprise-class Web and e-mail content security solutions, sophisticated security processors and accelerator products for the SSL and IPsec markets, and industry leading embedded Linux(R) and Linux security solutions. Headquartered in Ft. Lauderdale, Florida, the company has branch offices and training centers around the world. More information about CyberGuard Corporation can be found at http://www.cyberguard.com.

About MDS-Arabia Ltd.

Established in 1967, the MDS Holding group of companies gave rise to MDS - Arabia Ltd, which serves the emerging markets of the Middle East and Central Asia. The company provides certified turnkey solutions for enterprise and fault tolerant computer systems; networking, including LAN, WAN, and WLAN security; structured cabling systems; site preparation; electro-mechanical systems; power generation; hospitality systems and a range of software solutions for the financial, maintenance and healthcare industries. More information is available at http://www.mdsa.com.

Forward-Looking Statements

This press release contains forward-looking statements that involve certain risks, uncertainties and factors, including without limitation, those described in the Company's filings with the Securities and Exchange Commission that may cause the Company's future actual results to materially differ from the Company's current expectations. The Company assumes no obligation to update any forward-looking statements.

CyberGuard(R) and Webwasher(R) are registered trademarks and Total Stream Protection(TM) is a trademark of CyberGuard Corporation. All other trademarks are property of their respective owners.