Internet Security Systems Named Worldwide Leader in Intrusion Detection And Vulnerability Assessment by IDC

ISS’ Track Record of 22 Consecutive Quarters of Growth and Total Revenue Growth Validates Continued Market Strength and Performance

ATLANTA, March 8 /PRNewswire/ — Internet Security Systems (ISS) (Nasdaq: ISSX) was officially recognized today by International Data Corporation (IDC) as the worldwide leader in the Intrusion Detection and Vulnerability Assessment (IDnA) market according to a recent market-share report (Gaining control over the infrastructure: Intrusion Detection and Vulnerability Assessment). IDC reports that ISS’ security software solutions have continued to gain momentum in the areas of host- and network-based vulnerability assessment and intrusion detection, capturing 30 percent of the worldwide IDnA market, the number one ranking for 1999. This number increases to 34 percent worldwide when hardware revenues associated with Intrusion Detection purchases are excluded.

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The overall market was broken down into five product segments: network- based intrusion detection, host-based intrusion detection, network-based vulnerability assessment, host-based vulnerability assessment, and hardware appliance intrusion detection. According to IDC, RealSecure(TM) captured 88 percent of the worldwide network-based intrusion detection software market. Internet Scanner(TM) garnered 61 percent of worldwide network-based vulnerability assessment software market. Combined, RealSecure and Internet Scanner captured 71 percent of the worldwide software market share for network-based solutions. Building on its leadership and pioneering role in the market, ISS continued to introduce substantial firsts in 2000 by delivering the first hybrid network and host-based intrusion detection solution, the first true intrusion detection appliance, the first globally available product with strong encryption, and the first intrusion detection for Gigabit high-speed networks.

“End users of security technology have confirmed that ISS is the leader in e-business protection and that we continue to deliver the solutions needed to ensure the availability and integrity of networked information,” said Tom Noonan, president and chief executive officer, ISS. “The market for our security management solutions is escalating with increased opportunities as we continue to witness a broader demand for our industry standard products and managed security services. Our security management solutions play a critical role in helping to ensure the protection of e-business. As evidenced by our continued market leadership and strong performance, we are building the most widely recognized and valued security company in the industry.”

In addition to providing leading security management software solutions, ISS has become the world’s largest provider of managed security services that deliver remote, 24 x 7 security monitoring and management. Commenting on the recent growth of managed security services, IDC argues “there is little reason why any company outside of the Fortune 200 should not be seriously considering outsourcing the management of an IDS. The return on investment to truly monitor an IDS properly is beyond the scope of all but the largest and most paranoid organizations.” ISS has been the leader in offering Managed Intrusion Detection services since it began offering this to customers in 1997. ISS’ robust set of managed security services offerings include Managed Firewall, Managed Intrusion Detection, Managed Anti-Virus, Managed Virtual Private Network (VPN), Security Assessment and Emergency Response services.

The report concludes that the worldwide market for IDnA hardware and software products was $282.3 million in 1999. IDC estimates that this figure represents 107 percent growth over the 1998 market levels. In 1999, vulnerability assessment products garnered the lion’s share of the market at $166.6 million, or 59 percent of the overall market. Intrusion detection products represented 41 percent of the market at $115.7 million. IDC’s outlook for this market continues to be very strong with a compound annual growth rate (CAGR) of 34.2 percent for 2000 through 2004.

The report confirms that Internet Security Systems grew considerably in 1999 with the growth of the company’s IDnA revenue up more than 150 percent. IDC asserts that ISS’ competitive advantage has centered on network-based IDnA products but they also have shown strength in host based IDnA solutions, and that the company can provide outsourced solutions for automatic detection and management of customers’ security risks.

About The IDC Report

IDC recently published Gaining control over the infrastructure: Intrusion Detection and Vulnerability Assessment. This bulletin discusses factors driving the market and presents revenue forecasts for each segment of the market through 2004. It looks at host-based and network-based vulnerability assessment and intrusion detection products and discusses the pros, cons, and drivers of each. Additionally, profiles are provided for AXENT Technologies Bindview, Cisco, Computer Associates, CyberSafe, Internet Security Systems, Network Associates and Symantec. For more information on this bulletin or to order a copy, please contact IDC at 1-800-343-4952.

About Internet Security Systems (ISS)

Internet Security Systems is the leading global provider of security management solutions for the Internet, protecting digital assets and ensuring safe and uninterrupted e-business. With its industry-leading intrusion detection and vulnerability assessment, remote managed security services, and strategic consulting and education offerings, ISS is a trusted security provider to more than 8,000 customers worldwide including 21 of the 25 largest U.S. commercial banks and the top 10 U.S. telecommunications companies. Founded in 1994, ISS is headquartered in Atlanta, GA, with additional offices throughout North America and international operations in Asia, Australia, Europe, Latin America and the Middle East. For more information, visit the Internet Security Systems web site at www.iss.net or call 888-901-7477.

This release, other than historical information, includes forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties which could cause actual results to differ materially from those in the forward- looking statements include, but are not limited to, the following: the level of demand for the Company’s products; the volume and timing of orders; product and price competition; the Company’s ability to expand its domestic and international sales and marketing organizations; the Company’s ability to develop new and enhanced products; the Company’s ability to assimilate recent and potential future acquisitions or investments; the Company’s ability to attract and retain key personnel; the growth in the acceptance and use of the Internet and the World Wide Web, particularly by corporate, institutional and government users; the extent to which unauthorized access to and use of online information is perceived as a threat to network security; customer budgets; the assertion of infringement claims with respect to the Company’s intellectual property; and risks concerning the rapid change of technology; and general economic factors. These risks and others are discussed in the Company’s periodic filings with the Securities and Exchange Commission. These filings can be obtained either by contacting ISS Investor Relations or through the Securities and Exchange Commission’s Web site at “http://www.sec.gov”.




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