Research Addresses Economic Value of Security Solutions

Report from OMNI Consulting Group, sponsored by WatchGuard, provides method for evaluating investment in security technology based on mitigating the risk of network security breaches

Seattle, WA - November 18, 2002 -- Technology economics consultants at OMNI Consulting Group have released a report that addresses the challenge of determining the economic value of security solutions. The report, sponsored by WatchGuard Technologies, Inc. (Nasdaq: WGRD), a leading provider of Internet security solutions, is the result of an ongoing study initiated by OMNI Consulting Group in 1999 of network operations at more than 3,000 companies in the US and Europe. It establishes a new approach to determining the economic benefit of security solutions based on evaluating risk reduction and increased network efficiency.

According to the report, "Mitigating Economic Risk Through Security Technology," using the traditional ROI analysis to measure the value of investments made in security hardware and software fails to address the overall impact of these expenditures on the bottom line. OMNI Consulting Group applies the empirical theory of Economic Value Creation (EVC) to evaluate technical, operational and economic efficiency. The report presents numerical values that can be used by nearly every organization to estimate vulnerability to digital intrusions, estimate the cost associated with network security breaches and develop an economic justification for investing in security technologies.

"Security can no longer be regarded as an auxiliary technology investment, but rather as a core investment in the capitalization of the enterprise business model," said Frank Bernhard, managing principal at OMNI Consulting Group. "In looking at a technology offering such as WatchGuard's, it's imperative that companies go beyond a simple ROI calculation to analyze how the technology mitigates risk and makes business operations more efficient."

In addition to providing new figures on the cost and frequency of network breaches worldwide, the report presents a case study of the Economic Value Creation model using parameters associated with WatchGuard products and technology for illustration purposes.

"We are confident that OMNI Consulting Group's findings provide a new and comprehensive means for CIOs and CFOs to understand the true economic value that security contributes to the organization," said Jean Nassar, senior vice president of marketing for WatchGuard. "Applying this approach to WatchGuard products, we found that a company can reduce its risk from network breaches by nearly half before taking into account any anti-virus, authentication, intrusion detection or other security solutions inherent to the network environment."

The report, "Mitigating Economic Risk Through Security Technology" can be accessed at www.watchguard.com/press

About WatchGuard Technologies, Inc.

WatchGuard is a leading provider of dynamic, comprehensive Internet security solutions designed to protect enterprises that use the Internet for e-business and secure communications. The Company is a pioneer in the creation of the plug-and-play Internet security appliance, the Firebox, and server security software. The Company's innovative LiveSecurity Service enables organizations and users to keep their security systems up-to-date, and its ServerLock and AppLock/Web software provide server content and application security to protect critical data and services against unauthorized or unintentional access or manipulation. The Company's RapidStream "Secured by Check Point" product line is specifically designed to address the enterprise customer's need for VPN performance, scalability, and flexibility in a Check Point appliance solution. For more information, please call 206-521-8340 or visit www.watchguard.com.

About OMNI Consulting Group LLP

Founded in 1989, OMNI Consulting Group LLP is the premiere source for empirical knowledge behind today's fast moving technology marketplace. With an impressive global network of economists and research practitioners, the firm serves many of the world's largest technology organizations and offers an unbiased approach of quantitative standards to address client-focused initiatives. OMNI Consulting Group fosters the understanding of market dynamics through an application of econometric solutions in a wide array of advisory and market research functions. Practice units within the firm concentrate on merger and acquisition support, technology audit and assurance, and intellectual asset valuation.

No longer is market blindness an excuse, but rather an opportunity to witness the next horizon. Discover the insight of technology economics by visiting us on the Internet: http://www.omniconsultinggroup.com