IPOLICY NETWORKS POSITIONED IN THE 'VISIONARY' QUADRANT OF ANALYST FIRM'S MAGIC QUADRANT REPORT

Fremont, Calif., July 17, 2006 –iPolicy Networks, provider of integrated network security solutions, today announced that industry analyst firm Gartner, Inc. has positioned iPolicy Networks in the "Visionary" quadrant in the June 5, 2006 report entitled: “Magic Quadrant* for Enterprise Network Firewalls, 1H06.” ** This widely recognized and highly regarded annual Gartner report evaluates network security vendors on ability to execute and completeness of vision within the enterprise network firewall market.

According to Gartner, “There are many viable firewall providers, but the leading vendors provide a path to more inspection and blocking capabilities at higher speeds and at lower price points… The next-generation firewall (NGFW) is the close integration of enterprise stateful firewall and IPS …. True NGFW will be especially evident in virtualized firewall, in which the product intelligently handles the connections between firewall and IPS rather than merely passing the traffic back and forth with redundant DPI (deep packet inspection) …The NGFW market will eventually subsume the stand-alone network IPS appliance market, at the enterprise edge.”

"iPolicy Networks is pleased to be positioned by Gartner in the Visionaries quadrant for Enterprise Network Firewalls. We believe this is confirmation of our overall strategy and innovative security enforcement and management solutions for adaptive integrated threat prevention,” said Arun Chandra, CEO of iPolicy Networks. “We remain strongly committed to maintaining our market position in next-generation integrated network security through the unique extensibility of our Single Pass Architecture, new real-time vulnerability correlation capabilities, and high-performance platforms. We also continue to invest in further market penetration through channel expansion in North America, Asia-Pacific and Europe.”

iPolicy’s security solution integrates stateful firewall and multiple threat prevention functions like intrusion prevention and content filtering – all with a single-pass deep inspection – complemented by profile-based central management with support for multi-device virtualization. Innovations include R&D and quality differentiators, such as performance, virtualization, integration and management.

This technology is part of what has led to iPolicy’s strong market momentum over the past year. iPolicy recently announced a record-breaking year with significant growth in installed base, revenues, and partnerships, as well as expansion of the product line. iPolicy Networks also recently received validation by industry consultant firm Miercom as the most scalable and reliable network security solution in the industry for adaptive threat prevention, garnering CertifiedSecure and PerformanceVerified certifications from Miercom. The test report validated iPolicy Networks solution scalability for two types of deployments – (a) a multi-location enterprise network with over 500 iPolicy appliances, each with firewall, intrusion prevention and URL filtering active and (b) a network-based security with 1800 Security Domains (virtual security devices).

In addition to technological leadership, the Gartner criteria also included innovation, product strategy, customer satisfaction, market and sales execution and customer experience and operations in the evaluation of vendors.

* Magic Quadrant Disclaimer
The Magic Quadrant is copyrighted June 2006 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

** “Magic Quadrant* for Next Generation Enterprise Network Firewalls (NGFW), 1H06,” By Greg Young and John Pescatore, June 2006.

About iPolicy Networks
iPolicy Networks, an integrated network security product company, empowers customers to dynamically adapt their security to optimally address constantly emerging threats. iPolicy Networks’ Intrusion Prevention Firewall appliances are the only ones to utilize a deep-packet inspection Single Pass Architecture™ that enables organizations to enforce a wide variety of real-time security processes at extremely high speeds without impacting performance. Its scalable management solution provides consistent security enforcement across the network, through a large number of geographically dispersed iPolicy Networks appliances and advanced multi-security virtualization. Headquartered in Fremont, California, iPolicy Networks’ customers include some of the world's largest network service providers and leading government, financial services and educational organizations. For more information, please visit www.ipolicynetworks.com or call 1.510.687.3000.

iPolicy Networks is a registered trademark, and Single Pass Architecture, Security Domain and Intrusion Prevention Firewall are trademarks of iPolicy Networks, Inc. All rights reserved. All other products or brands mentioned are trademarks and/or service marks of their respective owners.