Press Release

Network Security Solutions Surpass $1 Billion for Quarter

Scottsdale, Arizona – According to Synergy Research Group’s latest report, Q3 2004 Network Security Market Shares, the total security market grew two percent sequentially and grew over 25 percent over Q3 2003. SRG segments the total Network Security market to include Hybrid Security Solutions (Firewall/VPN), Standalone Virtual Private Network (VPN) Gateways, Intrusion Detection/Prevention Systems (IDS/IPS), and SSL VPNs. Furthermore, SRG segments the Hybrid market into Low-End, High-End, Next Generation Appliances, and Software Solutions.

Hybrid Solution sales were up one percent sequentially and were up over 46 percent year-over-year, while VPN Gateway sales inched up two percent for the quarter but were down almost 41 percent year-over-year. Additionally, IDS/IPS sales increased five percent for the quarter and were up almost 31 percent from Q3 2003, while SSL VPN sales were up 15 percent in the quarter and were up over 200 percent year-over-year.

“As anticipated, the overall Network Security market finally reached the milestone $1 billion mark for the quarter,” said Aaron Vance, Senior Analyst at Synergy Research Group. “What’s more, these markets continue to be driven by the need to protect corporate and service provider networks from a growing and perpetually changing number of threats. Moreover, investment in security solutions is being led by emerging solutions like application firewalls, High-End and Next Gen Firewalls, IPS, and SSL VPNs.”

Table: WW Worldwide SSL VPN Market Share Leaders

Notable market share gainers for the quarter were Cisco, CyberGuard, ISS, Network Associates, and Symantec.

This 52-page report containing 42 market share tables is available for immediate purchase at www.srgresearch.com

Synergy Research Group (SRG) is a market research firm, which specializes in quarterly market analysis, market share, forecasting, and strategic consulting. SRG offers a wide breadth of market research services to the equipment manufacturing, semiconductor, and financial communities. Synergy can be found at www.srgresearch.com

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The contents of this press release represent SRG’s interpretation and analysis of statistics and information collected from authorized company representatives, industry sources, and SRG estimates. SRG does not guarantee the accuracy or completeness of the statistics or information contained in this release.