Internet Security Systems Acquires Content Security Pioneer Cobion
ATLANTA – January 14, 2004 – Internet Security Systems, Inc. (ISS) (NASDAQ: ISSX), an established world leader in security, today announced its acquisition of content security pioneer, Cobion AG for Ã¢â€šÂ¬26 million. Privately-held Cobion is a global leader in content filtering and anti-spam technology that protects individuals and enterprises against unwanted Web content, spam, misuse of information and lost productivity.
The Cobion acquisition enables ISS to deliver best-of-breed content security either as a stand-alone product or via the Proventia(tm) all-in-one protection appliance, fulfilling ISS’ security convergence strategy announced last October. ISS acquired Cobion for its intelligent content analysis technology, the world’s largest spam and Web content filtering databases (20 million Web sites categorized, four times its nearest competitor) and its robust research infrastructure, including 1,000-central processing units (CPUs) and 12 database distribution points around the world.
The strength of Cobion’s technology catapults ISS to the forefront of the rapidly expanding content security market. According to IDC, demand for content security will exceed $1.5 billion in 2006, representing the fastest-growing sector of the information security market. Spam resulted in $20.5 billion in corporate losses worldwide in 2003 and is expected to cost enterprises $198 billion in losses by 2007 (The Radicati Group Inc. 2003).
“ISS is now in the content security market with a product that automatically blocks Web content and spam like no other product available today,” said Tom Noonan, chairman, president and CEO of Internet Security Systems. “The Cobion acquisition completes our Proventia all-in-one protection product family with technology that matches the reputation and uncompromising quality ISS is known for.”
“This move is a perfect fit for Cobion and an opportunity for our technology to reach a wide market,” said J??Lamprecht, CEO of Cobion. “Both ISS and Cobion place heavy emphasis on research, quality and customer satisfaction. We’re confident that Cobion’s technology will successfully fulfill ISS’ content security and convergence strategies.”
The Cobion technology will be assimilated into ISS’ Proventia(tm) product family, setting a new standard in protection and flexibility, and empowering organizations to select the type of protection that best fits their needs. Content security will be added to ISS’ Proventia M all-in-one protection appliances in the second quarter of 2004, unifying content filtering and anti-spam capabilities with current functionality, including firewall, anti-virus, intrusion prevention and Virtual Private Networking. Proventia C, a best-of-breed content security appliance, is scheduled for second quarter release.
“As a trusted security advisor, our customers look to us for protection from all online threats, including spam, unwanted Web content, viruses, worms and hackers,” said Ingo Bock, director of Information Technology, T-Systems. “With ISS’ acquisition of Cobion, our customers will benefit from being able to source best-of-breed protection products from one vendor.”
“Spam and unwanted Web content are more than just a nuisance, and have quickly become a potential legal liability and a drain on productivity for enterprises,” said Brian Burke, analyst for IDC. “We believe anti-spam will continue to be an important adoption driver for other more holistic security products. ISS’ acquisition of Cobion is in line with IDC’s recommendation that vendors continue to develop, acquire, or tightly integrate with partners to offer a complete security solution.”
ISS is currently in its “Quiet Period” until earnings are released, which are currently scheduled to be released the last week of January. Company representatives are not available to comment concerning previously published financial expectations or the impact of the aforementioned acquisition of Cobion. In connection with its release of financial results for the quarter and year ended December 31, 2003, ISS intends to provide guidance for 2004 that will include the impact of the Cobion acquisition.
About Internet Security Systems, Inc.
Internet Security Systems, Inc. (ISS) is the trusted expert to global enterprises and world governments providing products and services that protect against Internet threats. An established world leader in security since 1994, ISS delivers proven cost efficiencies and reduces regulatory and business risk across the enterprise for more than 11,000 customers worldwide. ISS products and services are based on the proactive security intelligence conducted by ISS’ X-Force® research and development team – the unequivocal world authority in vulnerability and threat research. Headquartered in Atlanta, Internet Security Systems has additional operations throughout the Americas, Asia, Australia, Europe and the Middle East. For more information, visit the Internet Security Systems Web site at www.iss.net or call 800-776-2362.
Founded in 1997, Cobion’s mission is to protect organizations from unwanted or non-business related content, including e-mails, spam and file attachments. All unwanted or illegal content is kept outside, while confidential information is kept inside the company. Cobion develops the OrangeBox Web (Web filter), OrangeBox Mail (e-mail and spam filter) and OrangeBox LAN (intranet filter) security products and distributes to customers worldwide to facilitate more productive Internet usage, reduced liability, and intellectual property protection.