WatchGuard and Top Chinese University Establish Information Security Scholarship Program; Program Launched to Nurture New Generation of Security Experts in China

Business Wire, April 12, 2005

SEATTLE -- WatchGuard Technologies, Inc. (Nasdaq:WGRD), a leading global provider of integrated network security products and services, today announced a partnership with Shanghai Jiao Tong University (SJTU) to establish the SJTU/WatchGuard Information Security Scholarship.

WatchGuard will provide a total of 16 scholarships for undergraduate, postgraduate and doctoral students. To qualify, students of the SJTU School of Information Security Engineering must possess excellent grades, be actively involved in research and development efforts, and demonstrate a keen interest in contributing to the community.

The scholars will be selected by a five-member committee comprised of leaders and professors from the SJTU School of Information Security Engineering, recognized information security experts, and other government or industry professionals.

"It is our intention to partner with a leading information security vendor who is committed to a long-term partnership with Shanghai Jiao Tong University," said Professor Li Jianhua, dean of the School of Information Security Engineering, SJTU. "We believe that with WatchGuard's expertise and extensive global experience, we will be able to develop and support quality courses and programs for our faculty. We are confident that this will help pave the way for China to become a world leader in information security."

"WatchGuard is proud to work with a prestigious educational institution like Shanghai Jiao Tong University that has such a strong commitment to advancing information security technologies and practices. Information security is fundamental to the successes and growth of organizations," said Jeff Hurmuses, managing director Asia Pacific, WatchGuard Technologies. "With China's burgeoning economy, the country has a golden opportunity to become a world leader in technology. This market is a fundamental component of WatchGuard's global strategy and we will continue our investment and commitment to development in China, which we believe will have a positive effect on our APAC revenues."

The SJTU/WatchGuard Information Security Scholarship is the second phase of the strategic partnership between WatchGuard and SJTU. In June 2004, the two organizations established the SJTU/WatchGuard Information Security Laboratory. The laboratory has been in operation since last year and showcases WatchGuard's security solutions for learning, demonstration and testing purposes. The organizations intend to explore future opportunities for collaboration that would further promote the adoption of information security technologies and solutions in China.

About the School of Information Security Engineering in SJTU

The School of Information Security Engineering was founded by the State Ministry of Education and State Ministry of Science in October 2000 in response to the new Information Security Industry Base in Shanghai, which is an outcome of the Ministry of Science and Technology's state program 863. Its remit is to accelerate research into the industrialization of information security and to address a shortage of talent and skills in related industry.

About WatchGuard Technologies, Inc.

WatchGuard is a leading provider of network security solutions for small- to mid-sized enterprises worldwide, delivering integrated products and services that are robust as well as easy to buy, deploy and manage. The company's Firebox X line of expandable integrated security appliances is designed to be fully upgradeable as an organization grows and to deliver the industry's best combination of security, performance, intuitive interface and value. WatchGuard Intelligent Layered Security architecture protects against emerging threats effectively and efficiently and provides the flexibility to integrate additional security functionality and services offered through WatchGuard. Every WatchGuard product comes with an initial LiveSecurity Service subscription to help customers stay on top of the security landscape with vulnerability alerts, software updates, expert security instruction and superior customer care. For more information, please visit www.watchguard.com.

Certain statements in this press release, including statements about the effect our relationship with Shanghai Jiao Tong University will have on our business, our plans to collaborate further with Shanghai Jiao Tong University and other statements about our plans, objectives, intentions, and expectations are "forward-looking statements" within the meaning of the Securities Act of 1933, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to known and unknown risks and uncertainties and inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons, including the risk that our relationship with Shanghai Jiao Tong University will not have a positive effect on our business, the risk that we will be unable to collaborate further with Shanghai Jiao Tong University or that any further collaboration will not benefit our business and the other risks described under "Important Factors That May Affect Our Operating Results, Our Business and Our Stock Price" in our annual report on Form 10-K for the year ended December 30, 2004, and in our Securities and Exchange Commission filings from time to time. Readers are cautioned not to place undue reliance upon these forward-looking statements, which speak only as of the date of this release.