New Enterprise Strategy Group Report Identifies Enterprise Rights Management as a Superior Approach to Confidential Data Security

Market Wire, May, 2006

Liquid Machines®, Inc., the leading provider of Enterprise Rights Management (ERM) solutions, today announced that a new report written by Jon Oltsik, senior information security analyst with the Enterprise Strategy Group, examines the growing information security challenge facing today's enterprise organizations and concludes that Enterprise Rights Management solutions offer a superior and innovative approach by marrying security with data.

The report, titled "Enterprise Rights Management - A Superior Approach to Confidential Data Security" (Enterprise Strategy Group - May 2006), outlines the reasons why information security is no longer simply a technology issue, but a serious business problem that can destroy corporate reputation and lead to millions of dollars in damages. ESG predicts the market fallout of a data breach will drive a viable organization into ruin within the next 24 months.

"Productivity gains depend upon providing data access to employees, suppliers, government agencies, business partners, and customers," said Jon Oltsik of Enterprise Strategy Group. "This openness increases the threat of a data breach but locking down and disrupting valuable business processes is not an option. Chief Executive Officers and senior business executives must take an active role in managing the risks of confidential data loss. Otherwise, we believe they put their shareholders at undo risk of substantial revenue or capital losses based on reputation damage, customer loss, and lawsuits."

Some key findings, analysis, and conclusions from the report include:

--  Confidential data is everywhere. According to ESG, based on a survey
    of 227 North America-based organizations of 1,000 or more employees, 73% of
    respondents would classify at least half of their data as confidential.
--  Confidential data security is a business issue.  Business processes
    are dynamic, collaborative and inclusive. This openness increases the
    threat of a data breach; however, locking down data severely limits
    productivity. Organizations must find solutions that manage the risks of
    confidential data loss without impacting their ability to drive competitive
    advantage.
--  Most security defenses provide "all-or-nothing" protection.
    Technologies like firewalls, access controls, and gateway filters can grant
    or deny access but can't provide granular enforcement of acceptable use
    policies that define what users can and cannot do with confidential data.
    Given these weaknesses, static "all-or-nothing" security point tools do not
    deliver adequate protection for today's dynamic business requirements.
--  Enterprise Rights Management (ERM) is a superior approach. ERM
    solutions such as those offered by Liquid Machines take a holistic approach
    to confidential data security by actually marrying security with the data
    itself. In this way, access protection and usage control enforcement
    travels with electronic documents from machine to machine protecting
    against confidential data loss, theft, and modification.
    

To download a copy of the full report, visit:

http://www.liquidmachines.com/contentmgr/showdetails.php/id/969/num/2

About Liquid Machines

Liquid Machines is the leading provider of Enterprise Rights Management (ERM) solutions that persistently protect critical business content and audit usage while enabling collaboration. Liquid Machines' Document Control and Email Control solutions allow companies in the consulting, financial services, government, manufacturing, and healthcare industries to share information securely, within any application, wherever it goes, throughout its lifecycle. Liquid Machines ERM solutions help enterprises satisfy today's ever-increasing information security regulations such as Sarbanes-Oxley, NASD 2711, HIPAA and others, as well as implement and practice internal mandates for intellectual property security, product version control, or clinical data protection.

Based in Waltham, Massachusetts, Liquid Machines is privately held and is backed by Atlas Venture, Masthead Venture Partners, and Draper Fisher Jurvetson. For more information on the company and our vision The Freedom of Security(TM), visit us at www.liquidmachines.com .

© 2006 Liquid Machines, Inc. All rights reserved. Liquid Machines, Enabling Secure Business, The Freedom of Security, Policy Droplet, Omniva, and the Liquid Machines logo are trademarks or registered trademarks of Liquid Machines, Inc. Research in Motion, RIM, and BlackBerry are trademarks of Research in Motion Limited. Research in Motion and RIM are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. Microsoft and Windows are registered trademarks of Microsoft Corp. in the United States and/or other countries. Product or company names mentioned herein may be the trademarks of their respective owners. The information contained in this document represents the current view of Liquid Machines, Inc. on the issues discussed as of the date of publication.