WatchGuard LiveSecurity System 4.0 Breaks New Ground in

New Version Makes Security Management Easier, Adds Spam Mail Filtering And IPSec Dial-Up VPN Options. WatchGuard Technologies, Inc. (Nasdaq: WGRD), a leading provider of Internet broadcast security solutions, today announced version 4.0 of the WatchGuard LiveSecurity System(TM) which includes an entirely redesigned management interface, live links to WatchGuard's new online technical support site, and two new options for enhanced security -- dial-up IPSec (Internet Protocol Security) VPN for remote users and e-mail filtering. In addition, WatchGuard has added two new types of security broadcast to the LiveSecurity Broadcast Service -- expert editorials and support flashes -- helping subscribers remain knowledgeable about new threats and enabling them to keep their systems current. The LiveSecurity Control Center, a new management and monitoring console, delivers easier access to all of the WatchGuard security modules from one convenient screen and provides live links to each subscriber's personal LiveSecurity archive and to WatchGuard's new online technical support forum. The new features extend the functionality of the LiveSecurity System, delivering a comprehensive solution for safe e-business that includes: The WatchGuard LiveSecurity Broadcast Service, LiveSecurity Control Center, WatchGuard Security Suite and the WatchGuard Firebox Security Appliance. "The new LiveSecurity Control Center is tremendous," said Michael Crawley, Manager of Information Technology at Unimed Pharmaceuticals. "From that one point of reference I can manipulate anything -- view or change my security policy, run reports and monitor usage. The new interface is very clean and the integrated links to WatchGuard's online technical support forum makes it easy to get online support without leaving the LiveSecurity Control Center interface." "WatchGuard expanded the LiveSecurity Broadcast Service by transmitting more security intelligence directly to the customer's desktop," said Chris Christiansen, Program Director of Internet Security at IDC Research in Framingham, Mass. "This enhancement ensures quicker access to technical support and software updates from the new LiveSecurity Control Center management screen." Easier Management with the LiveSecurity Control Center The LiveSecurity Control Center is a new, integrated management and monitoring console that allows for quick installation and centralized management of the system from a standard Windows 95, 98 or NT workstation. From one location, managers can easily navigate through an intuitive, point-and- click interface to create security policies and remotely update new security software to the Firebox appliance. The LiveSecurity Control Center gives managers the flexibility to identify service and bandwidth usage with the Firebox monitors, view real-time usage of web sites and generate historical reports. Live integrated links add a new dimension of interactivity to the LiveSecurity solution, providing instant access to WatchGuard's online technical support forum and giving subscribers a direct link to their personal LiveSecurity archive stored on a secure WatchGuard server. Providing More Expertise with Expanded LiveSecurity Content The LiveSecurity Broadcast Service plays an important role in keeping the WatchGuard software current by proactively transmitting the information administrators need to remain knowledgeable about new threats and keep their systems current. In addition to threat responses, software updates and information alerts version 4.0 now transmits expert editorials and support flashes via LiveSecurity. These two new broadcasts deliver security-related feature articles written by third-party industry experts and transmits answers to commonly asked questions about the system. "After the LiveSecurity System is installed, we continue to support our customers through the LiveSecurity Broadcast Service," said Christopher Slatt, CEO of WatchGuard. "This innovative service gives subscribers a direct connection to WatchGuard's security experts and offers them a convenient way to keep their system current and continue learning about important security-related information." As always, the LiveSecurity Service also enables administrators to instantly send software updates and threat responses from their desktop to the Firebox appliance to keep the security software current against new threats. In contrast, static host-based firewall systems do not include an automated subscription-based service such as LiveSecurity, and the software updates require the resources of a highly paid security expert to ensure proper installation and maintenance. Dial-Up IPSec VPN Option The WatchGuard Security Suite includes firewall, authentication and VPN security for branch offices and remote users. In addition to PPTP (Point to Point Tunneling Protocol), version 4.0 now gives administrators the option of using industry standard IPSec VPN security for remote users. Advantages to the IPSec client include stronger encryption (168 bit in the US vs 148 bit for PPTP), faster performance under certain conditions and more robust functionality. For branch office security between multiple Fireboxes, the system offers a choice between WatchGuard's Encryption Protocol and IPSec branch office security. IPSec is a suite of protocols proposed by the Internet Engineering Task Force (IETF) for authenticating and encrypting data. Control Junk E-mail with New SpamScreen Option To minimize the influx of unwanted e-mail, version 4.0 provides a new SpamScreen(TM) option that screens incoming junk mail. For companies that are experiencing a large volume of junk e-mail, SpamScreen helps prevent incremental costs, such as lost productivity by employees who need to manage junk mail at their desktop and the cost involved with purchasing more bandwidth to sustain the transmission of spam mail. If left unmanaged, a burst of spam mail could potentially disrupt or crash a mail server. WatchGuard's new SpamScreen option addresses these concerns. Once installed, it checks the source of each incoming e-mail message against lists of questionable sources. SpamScreen also compares the e-mail with a list of signatures stored on the Firebox. When a match is found, administrators can deny or allow the message, or tag the message with a warning to the user that the message may be suspect depending upon the preferences set by the administrator. Innovative Security Appliance -- The Firebox The dynamic nature of the WatchGuard LiveSecurity System is made possible through an updateable security appliance that executes software sent from the administrator's remote management workstation receiving the LiveSecurity broadcasts. The Firebox is a standalone Internet security appliance that runs the security functions of the LiveSecurity System. It plugs in behind the router at the Internet connection of each office and implements security policies and protection. Equipped with a security- hardened Linux-based operating system, it is dedicated to the specialized task of Internet security. Its solid-state architecture removes the risk of hard drive failure and disk crashes, and dual image flash memory enables fallback to the previously transmitted policy. Three independent network interfaces allow administrators to separate their protected office network from the Internet while providing an optional public network for hosting Web, e-mail or FTP servers. Pricing and Availability The WatchGuard LiveSecurity System version 4.0 is now shipping and available worldwide through a network of resellers. Suggested list price for the system is $4,990 in the U.S. The IPSec VPN and SpamScreen options are expected to be shipping on September 15, 1999. The IPSec VPN option is available in 5-pack licenses for $495 per pack, and the SpamScreen option is $995 per license. Please visit the WatchGuard Web site for more information at About WatchGuard Technologies WatchGuard is a leading provider of dynamic, comprehensive Internet security solutions designed to protect organizations that use the Internet for electronic commerce and communications. The WatchGuard family of security products and services keeps Internet security defenses current with LiveSecurity, an innovative broadcast security service that delivers updated protection, responses to new security threats and security information to subscribers directly over the Internet. For more information, call 206-521-8340 or visit WatchGuard at Certain statements in this press release 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 certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect WatchGuard's actual results include, but are not limited to, the "Risk Factors" described in our Securities and Exchange Commission filings, including the Prospectus related to our initial public offering dated July 30, 1999. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. NOTE: WatchGuard is a registered trademark of WatchGuard Technologies, Inc. in the United States, Norway, New Zealand and Japan, and is trademarked in other countries. Firebox and LiveSecurity are trademarks of WatchGuard Technologies, Inc. ots Original Text Service: WatchGuard Technologies, Inc. Internet: Contact: Frances Bigley of WatchGuard Technologies, Inc. (USA) 206-521-3577, or Web site:

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