WatchGuard and BackWeb Join Forces to Deliver LiveSecurity

WatchGuard™ LiveSecurity Subscription Service Integrates BackWeb™ Technology to Keep Network Defenses Current

Seattle, WA – December 15, 1998 – WatchGuard Technologies, Inc., the leading provider of Internet security appliances, and BackWeb Technologies, the leader in accelerator applications, today announced an alliance to integrate BackWeb's 5.0 solution into WatchGuard's LiveSecurity Subscription Service. LiveSecurity systematically transmits the latest security software, policy changes, and rapid responses to new threats directly over the Internet to subscribers for push-button distribution to the WatchGuard Firebox Internet security appliance. The BackWeb technology in LiveSecurity accelerates the distribution of critical network security updates and ensures that subscribers consistently maintain the highest level of protection possible.

"LiveSecurity introduces a completely new architecture for network security that didn't even exist six months ago," said Christopher Slatt, CEO of WatchGuard. "By combining our award winning security technology with the scalable & automated distribution solution of a recognized leader, we've created a new model for security that automates the entire update process. The Firebox with LiveSecurity represents a long awaited business and technology breakthrough that makes it easy for companies to maintain the highest level of security at all times."

"We are pleased that Watchguard has chosen to use BackWeb as a critical component of its powerful live security system product," said Eli Barkat, CEO of BackWeb Technologies. "With BackWeb, LiveSecurity end users are quickly and easily configured to automatically receive critical software updates and mission-critical security information in a secure and cost-effective way. LiveSecurity subscribers can now benefit from this innovative product that automatically keeps their network security systems constantly current, with a low cost of ownership."

The Benefits of LiveSecurity

The WatchGuard LiveSecurity Subscription Service securely transmits all of the latest software updates, threat responses, and security alerts over the Internet to subscribers for distribution to the Firebox. With BackWeb's Polite Server and attention management capability, critical changes are delivered in a timely manner, while conserving network bandwidth. LiveSecurity updates are available directly from WatchGuard by simply purchasing a Firebox from WatchGuard's worldwide network of authorized resellers and subscribing to WatchGuard LiveSecurity. Customers who choose to outsource security will find LiveSecurity available via select ISPs as part of a managed security service based on the WatchGuard for MSS™ product. Advantages of LiveSecurity delivered by an ISP include security policy configuration, and round-the-clock monitoring and management.

Unlike traditional static host-based security systems that require manual updates and rely on general-purpose operating systems, the Firebox is a security-dedicated appliance capable of accepting remote instructions and system updates. Coupled with a LiveSecurity Subscription, the Firebox delivers a dynamic solution that reduces the total cost of ownership, minimizes ongoing maintenance, and is always technologically refreshed. For the first time, network managers and ISPs no longer have to worry about installing complex system updates or keeping up with the newest security threats – they can rely on WatchGuard to identify new threats and deliver the data directly to their desktops. In addition, network bandwidth is no longer a concern. BackWeb's Polite Agent technology dynamically adjusts to network activity, only downloading data during a computer's idle network time.

How LiveSecurity Works

All LiveSecurity updates are prepared by the WatchGuard Rapid Response Team, a select group of WatchGuard security experts that continuously monitor and analyze a variety of Internet sources for possible new threats. If a critical new threat is identified, a LiveSecurity alert is prepared for distribution, and is delivered immediately to LiveSecurity subscribers. This is accomplished through the BackWeb Polite Server and its Flash technology, which captures the user's attention. To ensure the highest level of security, the update is digitally signed using Verisign™ certificates then securely transmitted to subscribing LiveSecurity clients via an encrypted channel.

Once the update has been transmitted, the WatchGuard LiveSecurity client software automatically displays an on-screen notification at the subscriber's desktop indicating the nature of the update. With the click of a mouse, LiveSecurity authenticates the source of the transmission by verifying the digital signature of the alert then displays additional information on the update. If a decision is made to install the update, the update is transmitted from the administrator's desktop to the network of Fireboxes under management. Each Firebox then securely verifies, authenticates, and accepts the update within seconds of the transmission.

LiveSecurity distributes three types of updates. Threat Responses deliver specific updates protecting against newly discovered Internet security threats, thereby ensuring continuous network protection. Software Updates deliver product enhancements and upgrades to WatchGuard software modules, providing new functionality. Information Alerts notify subscribers of breaking news and current issues in Internet security that may be of interest to network managers.

LiveSecurity Pricing and Availability

Effective immediately, a 6-month WatchGuard LiveSecurity Subscription is included with the purchase of every new Firebox. The complete system is priced at $4,995 (MSRP in the U.S.) and includes: The WatchGuard Firebox, Firewall, User Authentication, Virtual Private Networking (VPN), and Security Management Software. The WatchGuard Enhanced Management Package offers historical reports, real-time monitoring, and Web Blocking. A one-year WatchGuard LiveSecurity subscription may be purchased for $1,295.

WatchGuard LiveSecurity Alliance

The WatchGuard LiveSecurity Alliance is an open industry initiative that endorses the WatchGuard LiveSecurity subscription-based model for network security. The Alliance consists of industry leading vendors and service providers that work with WatchGuard to deliver innovative security solutions based on the WatchGuard LiveSecurity architecture. BackWeb Technologies now joins current LiveSecurity Alliance members: CRYPTOCard, eSafe, Finjan, Funk Software, ISS, PSINet, RSA Data Security and WebTrends Corporation. To learn more about the LiveSecurity Alliance or to become a member, please contact WatchGuard via e-mail at alliances@watchguard.com or visit our Web site at www.watchguard.com/alliance.

About WatchGuard Technologies
WatchGuard produces advanced Internet security software and hardware solutions to protect critical corporate assets and enable safe, secure and private electronic commerce and communications. WatchGuard's security products are based on its unique LiveSecurity technology designed to keep network defenses current at all times through systematic electronic distribution of security software, security policies and rapid responses to new threats. The family of WatchGuard Firebox-based security solutions specialize in delivering protection at every office (firewall, access control and authentication), secure communications (encryption and Virtual Private Networking), and management (real-time monitoring and historical reporting). For more information, please visit the WatchGuard Web site at www.watchguard.com.

About BackWeb Technologies
BackWeb Technologies is a leading offline Web software company. BackWeb extends the value of technology investments by offering mobile and remote employees offline access to portals, intranets and other Web-based applications and content. The company's products reduce network costs and improve the productivity of an increasingly mobile workforce. At the core of BackWeb's products is its patented Polite® synchronization technology that can distribute large amounts of data even over narrow bandwidth connections. BackWeb® customers include market leaders such as Boehringer Ingelheim, Centocor, Eastman Kodak, GE Healthcare, Guidant, HP, KLA Tencor, Lam Research, Pfizer and more than one hundred other companies. BackWeb also has strategic reseller alliances with software industry leaders: Plumtree, SAP and IBM. The company is headquartered in San Jose, Calif. and Rosh Ha'ayin, Israel. For more information, visit www.backweb.com or call (800) 863-0100.

Statements in this news release, which are not purely historical, are forward-looking statements within the meaning of the U.S. Securities laws, including statements of beliefs, plans, expectations or intentions regarding the future. Examples of these statements include, but are not limited to, the ability of BackWeb software to allow customers to gain mobile, disconnected use of their portals and help increase field sales and field service productivity, the integration of BackWeb software with BEA products will help developers extend portal applications for offline use without changing the way they work, and the ability of the resulting applications to help field sales and service organizations realize maximum productivity, cost savings, and process acceleration gains while disconnected from the network. Actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include unforeseen technological issues related to use of the BackWeb software, deployment issues related to implementation, unforeseen software errors, competitive factors and business and expense factors that may affect the perceived efficiencies from use of BackWeb's products, and the risks and uncertainties detailed from time to time in BackWeb's periodic reports and registration statements filed with the U.S. Securities and Exchange Commission. BackWeb assumes no obligation to update any forward-looking statements contained in this press release.