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NEWS RELEASE
[LOGO]
INTRUSION.COM ACQUIRES MIMESTAR, INC.
COMPANY ADDS NETWORK INTRUSION DETECTION OFFERING TO ITS GROWING
FAMILY OF PRODUCTS
RICHARDSON, TEXAS, JULY 5, 2000 - Intrusion.com, Inc. (NASDAQ:INTZ), a global
provider of enterprise security solutions, today announced the acquisition of
MimeStar, Inc., developer of the advanced network intrusion detection
software, SecureNet Pro-TM-. Under the terms of the merger agreement,
Intrusion.com expects to pay $4 million in cash and issue 95,969 shares of its
stock to MimeStar's stockholders.
The acquisition represents a key component of Intrusion.com's strategy to
provide a full range of security offerings for the protection of e-business,
Web servers and internal computing systems. MimeStar's SecureNet Pro
network-based intrusion detection software rounds out Intrusion.com's
technology portfolio with a network-based solution that is complementary to
the company's existing host-based intrusion detection, security assessment,
behavior profiling, and security information analysis and management products.
According to Frost & Sullivan, intrusion detection system technology is an
important component of a comprehensive enterprise security strategy. They
forecast that the U.S. intrusion detection market will grow from $62.3 million
in 1999 to $1.71 billion in 2006 due to growth in the use of the Internet for
e-business and e-commerce.
"In today's economy, the cost of not protecting critical Internet, e-commerce
and business servers can mean millions of dollars in lost profits," said Tim
Kinnear, president and CEO of Intrusion.com. "The addition of SecureNet Pro
software to our technology portfolio gives us a complete solution set for
perimeter, internal and enterprise security. We will begin to offer SecureNet
Pro to our customers by the end of this month to complement our Kane line of
intrusion detection and vulnerability assessment tools."
Elliot Turner, CEO and founder of MimeStar, stated, "SecureNet Pro fits well
with Intrusion.com's security technology. By combining the advanced network
intrusion detection capabilities of SecureNet Pro with Intrusion.com's event
analysis and statistical profiling technology, we can create a superior
architecture that is unique in the industry." Mr. Turner, architect of
SecureNet Pro, will relocate to Richardson, Texas and become chief architect
of network intrusion detection systems at Intrusion.com.
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INTRUSION.COM ACQUIRES MIMESTAR, INC., (CONT.) 2 of 3
"Intrusion.com currently offers host-based intrusion detection and an
enterprise-grade monitoring capability to distill and highlight network
traffic that IS professionals are concerned about. With the acquisition of
MimeStar, the company is adding a key component - network-based intrusion
detection," commented Eric Hemmendinger, senior analyst at the Aberdeen Group.
"As the SecureNet Pro offering is seamlessly integrated into the existing
intrusion detection family, the company will be providing IS decision-makers
with comprehensive intrusion detection capabilities and the automated analysis
needed to quickly respond to intrusion attempts. Now the company has all three
legs to support what is already a very robust set of capabilities."
SECURENET PRO SOFTWARE: ADVANCED INTRUSION DETECTION
SecureNet Pro software offers a new level of advanced capabilities for network
intrusion and misuse detection. It examines packets at wire speed to identify,
log and terminate unauthorized use and misuse of computer systems by external
hackers and internal personnel. SecureNet Pro detects and responds to over 300
common Internet, operating system and application attacks, in addition to
other unauthorized uses of computer systems.
Attackers using commonly known techniques such as IP fragmentation can evade
many network-based intrusion detection systems. SecureNet Pro addresses this
issue by implementing three advanced evasion prevention techniques - IP Header
validation, IP fragment re-assembly and stateful TCP session reconstruction
and validation.
SecureNet Pro software incorporates an advanced scripting language to enable
the rapid identification, definition and testing of new attack signatures.
Because of this, Intrusion.com will be able to react swiftly to newly
identified attacks and exploits by distributing updates within hours of
discovery, rather than in the weeks or months taken by most other intrusion
detection software vendors. These program updates will be available as a
simple Internet download.
By the end of July, Intrusion.com will offer SecureNet Pro software as a
stand-alone network-based intrusion detection system. The software will also
be integrated with the company's Kane Secure Enterprise product to provide
industry-leading analysis of information gathered from network-based intrusion
detection systems, applications, servers, workstations, firewalls, routers and
other devices.
FINANCIAL DETAILS
The MimeStar, Inc. acquisition will be accounted for as a purchase with
Intrusion.com exchanging a combination of $4 million in cash and 95,969 shares
of Intrusion.com common stock (worth approximately $1.1 million based upon
Intrusion.com's June 30, 2000 closing price of $11.31 per share) for all
outstanding stock of MimeStar. Intrusion.com anticipates that the majority of
the purchase price will be allocated to purchased software and intangible
assets, both of which will result in increased amortization expense over the
next several years.
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INTRUSION.COM ACQUIRES MIMESTAR, INC., (CONT.) 3 of 3
ABOUT INTRUSION.COM, INC.
Intrusion.com, Inc., headquartered in Richardson, Texas, develops, markets and
supports a growing suite of security software and appliances to protect and
secure critical information assets. From award-winning vulnerability
assessment software to modular, scalable security devices, Intrusion.com's
security solutions have been implemented worldwide by businesses and
government entities. For more information, visit the company Web site at
www.intrusion.com.
This release, other than historical information, may include forward-looking
statements regarding future events or the future financial performance of the
company. These statements are made under the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995 and involve risks and
uncertainties which could cause actual results to differ materially from those
in the forward-looking statements, including but not limited to the following:
the difficulties and uncertainties in successfully developing and introducing
new products, the highly competitive market for the company's products,
difficulties in accurately estimating market growth, the consolidation of the
information security industry, the impact of changing economic conditions,
business conditions in the information security industry, the ability to
manage acquisitions effectively, the impact of market peers and their products
as well as risks concerning future technology and others identified in the
company's Annual Report on Form 10-K and other Securities and Exchange
Commission filings. These filings can be obtained by contacting Intrusion.com
Investor Relations.
Kane Secure Enterprise and SecureNet Pro are trademarks of Intrusion.com, Inc.
All other trademarks are the property of their respective owners.
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INVESTOR CONTACT:
Charleigh Shayne, Director, Investor Relations
972-664-8061, [email protected]
MEDIA CONTACT:
Michael Bernhardt, The Bernhardt Agency
503-293-8480, [email protected]
