SealedMedia Completes Strongest Year to Date; Company Expands Customer Base by 66 Percent, Generates Record Revenues and Delivers Secure Solutions to Global 2000 Organizations

Business Wire, Feb 9, 2006

LOS GATOS, Calif. -- SealedMedia Inc. today announced that 2005 was the company's most successful year ever, as customer deployments, channel partner engagements and global projects all reached record levels.

SealedMedia is the leading provider of cross-platform enterprise digital rights management (E-DRM) solutions that provide persistent security and "remote control" over email messages and documents. As organizations generate documents or messages, they can protect and constrain what others can do with it at any given moment, and can enforce its lifecycle, revoking or destroying it at-will.

"Our recently competed fiscal 2005 was an all-time record year for the company in terms of billings, revenues and new accounts," said George Everhart, CEO of SealedMedia. "From our leadership position in 14 countries, we are seeing good evidence that the global market for our solutions is starting to take off."

During fiscal 2005, SealedMedia's revenues were eight times higher than in 2001. Moreover, revenues generated through partners in 2005 grew 170 percent compared to 2004. Additional highlights include:

--Financial: SealedMedia had record revenues and bookings in 4Q 2005.

--Deal Size: The average deal size during the second half of 2005 was 167 percent larger than the first half of 2005.

--New Accounts: SealedMedia's new account business rose 150 percent in 2005 compared to 2004, including major contracts with the U.S. Department of Defense, the U.S. Department of Energy, and additional government organizations across the globe.

--Corporate Clients: Additional corporate client wins BMW, Prudential (UK), Thomson Corp., The Walt Disney Co. and two of the world's top five pharmaceutical companies.

--Enterprise Reach: SealedMedia has the most and largest E-DRM deployments, often ranging from 1,000 to 100,000 seats. The company's largest customer has over 150,000 seats.

--Partners: In addition to strategic partner EMC Corp., SealedMedia works closely with Adobe, Apple Computer, Hewlett-Packard, IBM, Microsoft, Oracle, RIM, Ness Technologies, Informative Graphics Corp, and distributors across the globe.

--Technical Achievements: Recognized with Frost & Sullivan's Technology Leadership Award for DRM Product of the Year, and earned additional nominations for Best Digital Rights Management Software Solution and other IT awards.

SealedMedia's commitment to innovation, and research and development continue to outpace the competition. During fiscal 2005 the company released its fifth generation product, while rivals remained focused on second-generation offerings that lack SealedMedia's scalability usability and manageability. This R&D commitment has generated seven international patents, and additional patents pending in the United States.

Proven ROI, Growing Demand

Without SealedMedia's solutions in place, organizations risk major IT setbacks related to confidential information leakage. Indeed, the costs associated with a typical information leak ranges from US$20,342 to $404,375 per incident, according to PricewaterhouseCoopers. Eager to avoid such setbacks, progressive customers will increase spending on solutions that enforce content and corporate policies to $1.9 billion by 2009, according to International Data Corp. And according to a recent Gartner Inc. report, "Protecting customer data is much less expensive than dealing with a security breach in which records are exposed and potentially misused."

Analysts, much like SealedMedia's customers, see the inherent value in SealedMedia's solutions. "SealedMedia can be of significant value to an organization by reducing the likelihood of information reaching the wrong parties, or being made public before it should," said Richard Edwards, research analyst, IT Infrastructure, Intelligence, Collaboration, at Butler Group, a European IT research, analysis and advisory firm. "SealedMedia provides the capability to persistently protect and control access to almost any file, including the ability to print, screen grab, or to copy information. This means that wherever a file is sent, only those authorized can access it."

Caution concerning forward-looking statements

Any statements contained in this announcement that are not historical facts are forward-looking statements. Although the Company believes that its plans, intentions and expectations reflected in such forward-looking statements are reasonable, a number of important factors could cause SealedMedia's actual future results to differ materially from those expressed in any such forward-looking statements. The forward-looking statements herein speak only as of today. SealedMedia expressly disclaims any obligation or undertaking to update or revise such information.

About SealedMedia, Inc.

SealedMedia helps organizations maintain complete control over who can use their most sensitive information and when, for the lifetime of a document. Executives and employees can send emails and documents securely to anyone, anywhere in the world, while easily maintaining control over when, where and how the information is used, and by whom. Headquartered in Los Gatos, California with European offices in London, UK and North American sales offices in Boston, Massachusetts, SealedMedia has an enviable customer base of Fortune 500, Global 1000 and FTSE 100 companies, as well as governments and government agencies around the world.