<PAGE>
Exhibit 99.1
[LETTERHEAD OF PILOT NETWORK SERVICES]
Contacts:
Bob Osmond, Upstart Communications Emma Rosen, Pilot Network Services, Inc.
510-457-3111 or [email protected] 510-433-7851 or [email protected]
Pilot Completes Stock Placement of $15 Million with Credit Suisse First Boston
Subsidiary to Accelerate Strategic Global Expansion
Pilot Continues to Expand into International Markets through Strategic
Relationships with Global Telecommunications Carriers
Alameda, Calif., June 30, 2000 -- Pilot Network Services, Inc.(R) (Nasdaq: PILT)
today announced that it completed on June 28, 2000 a private placement of
preferred stock totaling $15 million with Marshall Capital Management Inc., a
wholly owned subsidiary of Credit Suisse First Boston, engaged in proprietary
investments in private placements of promising high-growth companies. Pilot(R)
will use the proceeds to accelerate the deployment of its telecommunications
partner strategy. Working in alliance with telcos around the world, Pilot
configures its partners' data centers with the Pilot Heuristic Defense
Infrastructure(TM) (HDI(TM)), to enable them to deliver Pilot Protected(TM) e-
business and other Internet services to a growing base of international
customers.
Pilot's patent-pending Heuristic Defense Infrastructure combines a multi-
layered, distributed architecture, continually evolving defense processes and
methodologies that learn from experience, and the expertise of security
engineers to secure networks and Internet transmissions from unauthorized
access, criminal hackers, and viruses, around the clock.
"Pilot has already taken major steps in realizing a long-term vision to combine
the secure, next generation e-business services that Pilot invented and
developed, with the wide-reaching infrastructure of global telecommunications
leaders. With added financing, we can accelerate this effort and fulfill our
strategic plan to deliver Pilot-Protected(TM) e-business services that circle
the globe," said Marketta Silvera, chief executive officer and president, Pilot
Network Services, Inc. "In coming months, Pilot will develop further strategic
partner relationships that will bring both added resources and capabilities."
For the fiscal year ending March 31, 2000, Pilot reported an 82% increase in
revenue over the previous fiscal year. This influx of capital from Marshall
Capital Management will help Pilot fuel its continued rapid growth to fulfill
its plan to deliver Pilot Protected services to customers worldwide.
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About Credit Suisse First Boston
Credit Suisse First Boston is a leading global investment banking firm,
providing comprehensive financial advisory, capital raising, sales and trading,
and financial products for wholesale users and suppliers of capital around the
world. It operates in 55 offices across more than 35 countries and six
continents and has over 15,000 staff. Credit Suisse First Boston is one of the
world's largest securities firms in terms of financial resources, with
approximately $9.8 billion in revenues in 1999 and $7.8 billion in equity and
$275 billion in assets as of December 31, 1999. The Firm is a wholly owned
subsidiary of the Zurich-based Credit Suisse Group. For more information on
Credit Suisse First Boston, please visit http://www.csfb.com or the Technology
Group at http://www.tech.csfb.com .
About Pilot Network Services, Inc.
Pilot Network Services, Inc. is the only provider of highly secure,
subscription-based e-business services. As the Security Utility(TM) pioneer,
Pilot enables secure e-business for companies of all sizes in every industry by
providing a wide range of services with built-in security to protect enterprise
networks. Pilot protected e-business services include secure hosting, Internet
access and gateways, and extranet/VPN services. Customers can choose options
including encryption, authentication, access control, virus scanning, and web
filtering. Pilot provides the highest level of protection available today by
connecting businesses to the Internet through Pilot Security Centers.
Protection from hackers, viruses, and other threats is built into the Pilot
network with an advanced, distributed security architecture called the Pilot
Heuristic Defense Infrastructure(TM) (HDI(TM)). The Pilot HDI combines the most
advanced technology with 24 x 7 monitoring by security engineers to continually
evolve and proactively defend Pilot clients' e-business interactions against
attack. Pilot can be reached at 888-40-PILOT or online at www.pilot.net and
[email protected]/1/.
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/1/ Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve
certain risks and uncertainties that could cause actual results to differ
materially, including potential fluctuations in results of operations, the new
market for Internet security monitoring, detection and defense services, impact
of competitive products and services, and risk factors listed in Pilot's
registration statement on Form S-1 dated August 10, 1998.
