WatchGuard ServerLock Extends Security Beyond the Firewall

New Software “Locks Down” Operational Servers, Protecting Against Service Outages Caused by Web Site Defacement and Server Configuration Threats

SEATTLE–Feb. 12, 2001–WatchGuard Technologies, Inc. (Nasdaq:WGRD), a leader in Internet security solutions, today extended its award-winning Firebox firewall and VPN appliances with the introduction of WatchGuard ServerLock, new software that locks-down Microsoft NT(R) and Microsoft Windows(R) 2000 servers.

ServerLock reinforces WatchGuard’s perimeter defense products by hardening the server operating environment using easy to manage software that can be cost-effectively implemented by existing staff. With ServerLock, the Internet-enabled enterprise extends its defenses by avoiding service outages caused by web server attacks, internal administrative errors and unauthorized changes or routing of server content.

“A good security strategy should be multi-layered and must react to the increasing sophistication of attacks,” said Jack Danahy, vice-president and general manager, WatchGuard Server Security. “With ServerLock, we are closing the operational vulnerabilities that arise from permitting legitimate traffic through the firewall, from disgruntled employees and from accidental changes by internal staff. This is the next step in our long-term strategy to advance WatchGuard’s security solutions and provide our customers with the freedom to leverage the Internet to the fullest.”

Designed initially for Microsoft Windows NT and the Windows 2000 Server family, WatchGuard ServerLock integrates with the operating system to define two modes for the server: Operational and Administrative. In Operational mode, all server configuration elements are secured from unauthorized changes including registry files, web pages and scripts, and other customer-defined resources. This protects the server from downtime caused by incorrect configuration changes or malicious attacks from both within and outside the enterprise. During Administrative mode, ServerLock uses a sophisticated encryption suite that enables an enterprise to centrally and securely control all modifications to the largest server farm or to an individual server.

“In a perfect world everyone would setup a firewall using its default configuration — deny all incoming traffic and allow all outgoing traffic — but for the 99.9% of companies who use e-mail or have a web-site, decisions must be made to open the firewall and allow some amount of traffic into the network,” said Chris Christiansen, Program Director of Internet Security at IDC (Framingham, MA). “WatchGuard delivers a unique three-tiered defense for today’s Internet-connected businesses — a firewall for access control, VPN for private communications and, now, ServerLock to protect operational servers. ServerLock is an important solution for any business or service provider that already owns a firewall, and a valuable new addition to WatchGuard’s suite of security solutions.”

Simple-to-Implement, Easy-to-Manage

WatchGuard ServerLock is easy to install and simple enough to be implemented by existing staff with minimal security expertise. The sophisticated management console provides an extremely low total cost of ownership (TCO) and with the click of a mouse authorized administrators can configure security rules, assign server groups and set server protection levels. Using ServerLock Manager, administration can be aggregated or delegated to the appropriate organizational level providing centralized control or distributed management at the division, site, web-farm or individual server level.

“WatchGuard is one of the few vendors that understands the need for a multi-layered approach to security,” said Bob Antia, Chief Master Architect for Exodus, a leader in complex Internet hosting and managed services. “Security for our customers must continually evolve to defend against new methods of attacks — both internal and external. WatchGuard understands that broad-scale adoption of their technologies is dependent on ease-of-use and simplified administration. With ServerLock, they continue to deliver first-rate administrative tools and superior quality.”

Pricing and Availability

Both new and existing WatchGuard customers with a Firebox II, Firebox II Plus or Firebox II FastVPN receive a 50% discount when they purchase one copy of ServerLock through an authorized reseller from now until March 31, 2001. WatchGuard products are available in more than 50 countries throughout a worldwide network of authorized resellers and service providers. WatchGuard ServerLock for Windows NT or the Windows 2000 Server family is priced beginning at $1,295 for one server (discounts available for multiple servers). Pricing for the ServerLock Manager administrative interface is based on the number of servers under management. Pricing begins at $4,995 for 1-5 servers.

About WatchGuard Technologies, Inc.

WatchGuard (Nasdaq:WGRD) 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 and offers solutions for any size organization — from large enterprises with geographically dispersed offices and telecommuting employees to home offices with a single broadband connection. The Company’s innovative LiveSecurity Service enables organizations and users to keep their security systems up-to-date through WatchGuard’s broadcasts of threat responses, software updates, information alerts, expert advisories, support flashes and virus alerts over the Internet. For more information, please call 206/521-8340 or visit www.watchguard.com.

Certain statements in this press release are “forward-looking statements” within the meaning of the Securities Act of 1933, as amended. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect WatchGuard’s actual results include, but are not limited to, the “Factors Affecting our Operating Results, Our Business and Our Stock Price” described in our quarterly report on Form 10-Q for the quarter ended September 30, 2000 and in our Securities and Exchange Commission filings from time to time. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release.

WatchGuard(R) and LiveSecurity(TM) are either a trademark or registered trademark of WatchGuard Technologies, Inc. in the United States and other countries. Firebox and ServerLock are trademarks of WatchGuard Technologies, Inc.

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