Wednesday, 5 October 2005 09:04 EST

Company Plans Continued Product Innovation and Rapid Increase in Market Penetration

FREMONT, Calif Oct. 4, 2005 Intrusion Prevention Firewall With Innovative Security Management Gaining Acceptance Across Market and Geographic Segments

iPolicy Networks, inventor of the Intrusion Prevention Firewall for real-time network protection, announced today it has secured $15 million in a Series B round of financing led by the Ignite Group. Ignite Group joins the syndicate of existing major investors, including Clearstone Venture Partners, WK Technology Fund, iPolicy Networks' chairman Prabhu Goel, and The Entrepreneurs' Fund, which increased its investment in the company. The syndicate was also expanded to include another new investor, Parawin Venture Capital.

"The funds will be used to accelerate the company's go-to-market plans and continue the innovation to address next-generation security threats for enterprise and service provider customers," said Arun Chandra, President & CEO of iPolicy Networks.

Network security challenges are ever increasing as new viruses are unleashed daily, hackers are developing more damaging worms, objectionable content on the Internet is rising, and new security vulnerabilities continue to be uncovered. The iPolicy Intrusion Prevention Firewall (IPF) leverages its unique Single Pass Architecture(TM) to deliver high performance throughput from 140Mbps to 4Gbps while concurrently running multiple security applications to protect against all of these Internet threats. iPolicy Security Manager (ISM) enables customers to manage security in a consistent manner across multi-location networks through a central management console. In addition, ISM enables network-wide virtualization through its innovative security domain implementation. "We offer one of the most innovative management solutions. Customers can easily segment, configure, administer, report and audit across their networks enabling unified security for consistent, global enforcement and regulatory compliance," said Chandra.

iPolicy Networks has achieved significant market traction across higher education, banking & financial services, mid to large size enterprise and service provider market segments. "Security is a large market segment growing faster than the broader IT market. Network security is a complex problem and iPolicy has a great product built on unique technology coupled with a strong team," said Jim Armstrong, Managing Director with Clearstone Venture Partners. "These are the attributes you want to see today in the stars of the future."

Leading analysts have recognized iPolicy's Single Pass Architecture-based Intrusion Prevention Firewall as the closest to the "ideal network security solution" and customers are accepting iPolicy Networks' products as the preferred security solution because of its simple-to-use yet highly scalable management and comprehensive protection against multiple types of threats, all in a single platform. "Our mission now is to take the company to the next level with disciplined execution of go-to-market activities through select channel and OEM partnerships while continuing to invest in product innovation to leverage our powerful Single Pass Architecture advantage," added Chandra.

"Ignite has an on-going investigation of the security market value chain: from processors through to systems and applications. We believe iPolicy Networks has an unfair advantage in the network security space," said Steve Payne, General Partner with the Ignite Group. "In addition, we have verified strong demand in Asia and Japan."

About IGNITE Group

The Ignite Group is an information technology venture capital firm with offices in Silicon Valley and Tokyo, Japan focusing on investments in communications and consumer technologies. Ignite's investors include some of the largest communications and IT companies in the world, and the firm uses its extensive Asian relationships to maximize portfolio companies' success. More information is available at http://www.ignitegroup.com/.

About Clearstone Venture Partners

Clearstone Venture Partners is a technology-focused venture capital firm with over $650 million of committed capital. Clearstone's active guidance approach to technology investing combines deep knowledge of technology markets, a proven analytical approach, extensive networks, internal operating expertise and an appreciation for communication and rapid problem-solving to shepherd our companies to success in their chosen markets. Clearstone Venture Partners provides venture capital to visionary technology innovators in the major computing and Internet sectors. More information is available at http://www.clearstone.com.

About WK Technology Fund

Founded in 1989, WK Technology Fund has become a leading venture capital firm in Taiwan with focus in Asia and the United States. With over US$500 million under management, WK invests in early-stage and mid-stage private companies in Taiwan, the United States and China, primarily in Communications and Information Technology. WK Technology Fund creates marketing and manufacturing synergies for its portfolio companies by leveraging its extensive technology network and strong management expertise in Asia and the United States.

About iPolicy Networks

iPolicy Networks is the developer of the world's first Intrusion Prevention Firewall delivering real-time, consistent security enforcement for enterprises, carriers and managed security service providers. The iPolicy Intrusion Prevention Firewall supports multiple security functions built on iPolicy's Single Pass Architecture(TM) that enables superior performance even under heavy traffic load. The Intrusion Prevention Firewall protects data networks from a wide range of security threats, e.g. intrusions, worms, Spyware and objectionable internet content while offering a significant reduction in TCO. Complemented by the iPolicy Security Manager (ISM), the solution allows customers to configure, manage, monitor, and report on security across the entire global network, enabling consistent security enforcement and helping with compliance to regulations such as Sarbanes-Oxley, Gramm-Leach-Bliley, HIPAA, and European Data Privacy Directive.

For more information, please visit http://www.ipolicynetworks.com or call +.