Jatheon Technologies and E-mail Archiving Positioned for Growth in 2008

Business Wire,  March 5, 2008  

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SEC, NASD, NYSE, Sarbanes Oxley, USA Patriot Act, HIPAA Pose Challenges to Mid-Market

NEW YORK & TORONTO -- Delivering Plug n Comply[TM] e-mail archiving appliances for the mid-market, Jatheon Technologies, Inc., today outlined the initiatives fueling the company's momentum into 2008. Highlights include new customer contracts, the launch of a global partner program, additions to its family of e-mail archiving appliances, and expansion into numerous new vertical markets.

Revenues for privately-held Jatheon increased almost 400 percent in 2007 over 2006. The company doubled its customer base and added 20 new channel partners, due in large part to its aggressive push into the U.S. market. Here, Jatheon responded to growing demand among mid-market companies to meet federal, industry and corporate compliance guidelines, including SEC, NASD, NYSE, Sarbanes Oxley, USA Patriot Act, HIPAA and state regulated insurance legislation requirements.

Growth in mid-market e-mail archiving is also attributed to the rise in e-mail and instant messaging volume. Recent research by The Radicati Group, Inc., reveals the average corporate e-mail user sends and receives 133 e-mails per day, creating a storage demand of 16.4 MB per user, per day. By 2010, e-mail storage requirements are expected to rise to 21.4 MB per user, per day.

"As the recent White House case demonstrates, the threat of non-compliance lawsuits and the threat of system crashes due to storage capacity shortfalls are very real," explained Kieron Dowling, president and CEO of Jatheon Technologies. "E-mail archiving offers real insurance against both risks. And contrary to popular perception, e-mail archiving is not inherently expensive or complex."

The Plug n Comply family of e-mail archiving appliances offers clients a turn-key, in-house solution -- effective within hours, not weeks -- for managing all of their e-mail data, including instant messaging and e-mail attachments.

Even companies that do not fall directly under a government or institution regulation for e-mail archiving are candidates for a Plug n Comply solution. When such a company does business with regulated organizations, it finds itself increasingly, though indirectly, affected by the regulations imposed on its business partners.

Mid-Market Companies across Vertical Markets Quick to Recognize IT Hotspot

E-mail archiving is quickly emerging as an IT hotspot for companies in regulated industries, as well as for those doing business with companies in regulated industries. "We've seen particular growth in the areas of health care and education," added Dowling.

In the past year, Jatheon has signed customers throughout North America and EMEA, including:

* Lakeside Logistics (transportation/logistics)

* Sheehan Phinney Bass + Green (legal)

* National Retail Properties (real estate)

* United Western Bank (brokerage/finance)

* TLCVision (retail)

* Bioniche Life Sciences (health care)

* Village of Niles (government/municipality)

Partner Channel Primed for E-mail Archiving Demand

Launched in October of 2007, Jatheon's Global Business Partner (GBP) program offers aggressive partner margins, recurring revenue sales incentives and 24/7 technical support. Support includes sales and marketing materials, on-site technical training, demo equipment, and ongoing sales support. The incentive program includes quarterly and annual rewards, yearly partner conferences, and the Jatheon President's Club, exclusively for high-performing, partner sales employees. Highlights of the partners signed in the last twelve months include:

* 5K Company

* PC Mall

* Softchoice

* Zones

* Dokumenta

The company credits the ease of deployment, management, and use of its solution for the success of its partner relationships to date -- which now account for the majority of the company's new business. While working to double the number of channel partners in North America and Europe, Jatheon also will develop current reseller partnerships throughout 2008.

Affordable Plug n Comply Arms Mid-Market with Large Company Protection

Jatheon continues to expand its Plug n Comply e-mail archiving family of appliances serving small companies to enterprise organizations. In November, 2007, Jatheon introduced the Jatheon PnC 100 SB, a new appliance designed for companies of 100 or fewer employees that delivers full regulatory compliance, internal policy management, storage space management, and e-discovery functionality.

Behind the simplicity lies a scalable, feature-rich e-mail archiving system that offers unique, industry-first features such as DNA fingerprinting to verify the integrity of archived messages, and a decryption engine to accommodate enterprise encryption technologies.

Additional enhancements made to the Plug n Comply product this past year include:

* Improved processing power

* Increased storage capacity

* Enhanced functionality for searching and policy control

Plans for 2008 include multiple language support, a service provider model and enhanced message management and control functionality.