Watchfire Licenses Web Security Patent to Teros: Watchfire and Teros Also Enter into Cross-License Agreement

Business Wire, Jan 18, 2005

WALTHAM, Massachussetts & SANTA CLARA, Calif. -- Watchfire, a provider of enterprise software and services to manage online security, privacy, quality, and compliance risks and Teros, a provider of Web Application Firewalls and Gateway devices, today announced they have signed an agreement to license Watchfire's patented intellectual property to Teros. Specifically, Teros has agreed to pay Watchfire an undisclosed amount in exchange for certain rights to Watchfire's United States Patent number US 6,311,278 (the "278 patent"). The agreement also provides for the cross-licensing of select web application vulnerability-related patent claims. Additional details of the agreement were not disclosed.Watchfire's United States Patent number US 6,311,278, a Dynamic Policy Recognition Engine (DPRE), is a methodology used in Watchfire's web application security firewall solution.

"Web application security is increasingly recognized as a critical business process for protecting companies against the onslaught of attacks that are growing in both number and sophistication," commented Peter McKay, president and CEO, Watchfire. "We are pleased to have reached an agreement with Teros that benefits both companies and is in the interests of the Web application security market as a whole."

"Teros delivers to our customers an integrated application firewall and web acceleration gateway devices to protect against attacks," said Bob Walters, president and CEO of Teros."We are thrilled to continue enhancing our product capabilities with the addition of the Watchfire intellectual property."

About Watchfire

Watchfire provides enterprise software and services to manage online security, privacy, quality, and compliance risks. More than 400 enterprise organizations and Government agencies, including AXA Financial, SunTrust Banks Inc., Veteran's Affairs, United States Postal Service and Dell rely on Watchfire to monitor, measure and manage all aspects of the online business including quality, privacy, web application security, accessibility, user experience and visitor behavior. Watchfire's alliance and technology partners include IBM Global Services, PricewaterhouseCoopers, TRUSTe, Microsoft, Interwoven, Documentum and Mercury Interactive. Watchfire is headquartered in Waltham, MA. For more information, please visit www.watchfire.com.

About Teros

Teros is the global leader in application security. The company's mission is to guarantee the availability, integrity, and performance of Web and Web Services-enabled applications by defeating all known and unknown application attacks and accelerating application performance. Global 1000 corporations, small and medium-sized enterprises, and government agencies rely on Teros to secure critical applications, as well as protect sensitive corporate and customer information. Teros is listed as a "visionary" company in Gartner's Magic Quadrant for enterprise firewalls and is named a "winner" in the rapidly-growing application security gateway market by Yankee Group. Teros is privately held with headquarters in Santa Clara, California. To contact Teros call 408-850-0800, visit us on the web at www.teros.com or write to info@teros.com.

Watchfire, WebCPO, WebXM, WebQA, WebXACT, Bobby, Sanctum, AppShield, AppScan, the Sanctum Logo, the Bobby Logo and the Flame Logo are trademarks or registered trademarks of Watchfire Corporation. Teros, Teros 100, Teros 200, Fireline, Teros APS, Teros Application Security Gateway are trademarks of Teros, Inc.All other products, company names and logos are trademarks or registered trademarks of their respective owners.