CyberGuard Firewalls Protect Applications for BT Global Services

Bracknell, UK, 9th January , 2006 – CyberGuard(r) Corporation (NASDAQ: CGFW), a global provider of security solutions that protect the business-critical information assets of Global 2000 enterprises and government organizations, today announced that BT Global Services, a new customer for CyberGuard, has deployed 140 CyberGuard firewalls as part of a large project providing robust and resilient security to manage applications for their clients in the financial services sector.

CyberGuard has a long-established reputation for supplying security solutions to the financial services sector as well as government, utilities and the military. BT Global Services deployed CyberGuard because its products provide the highest level of security, as well as CyberGuard’s ability to provide a highly customized, centrally managed, comprehensive security solution based on proven technology. CyberGuard is one of an elite group of companies whose firewall products have reached the highest level of independent certification with Common Criteria EAL 4+, which was also a major consideration in the selection process.

Martin Elliott, business manager, major client solutions, BT Global Services, said, “Due to the complex business environment and nature of the applications we manage for our clients, we needed a solution that could not be met by an off-the-shelf package. The ability and willingness to customise the firewall/VPN appliances was a key factor in our selection criteria and CyberGuard worked closely with us to deliver the product and features that we wanted. The Common Criteria EAL 4+ certification was also of importance to us and gave us reassurance that their products have gone through a rigorous testing process. CyberGuard’s solution has smoothly integrated into our existing managed infrastructure which means we have been able to continue providing a highly robust, resilient security environment for our financial services customers.”

“Managed security providers have always demanded the most technologically advanced security solutions to provide comprehensive protection to their customers,” said Andrew Clarke, Vice President and Managing Director EMEA, CyberGuard. “The fact that BT Global Services has chosen CyberGuard enterprise grade security solutions which have EAL 4+ certification demonstrates the strength of our application-level protection and the integrity of our security framework.”

About BT

BT is one of the world’s leading providers of communications solutions serving customers in Europe, the Americas and Asia Pacific. Its principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services.

BT consists principally of three lines of business:

* BT Retail, providing a comprehensive range of communications and related services to more than 20 million UK consumers and businesses.

* BT Wholesale, providing network services and solutions within the UK to more than 600 fixed and mobile operators and service providers including the provision of broadband and private circuits.

* BT Global Services, providing networked IT services to meet the needs of multi-site organisations globally. BT Global Services operates in more than 130 countries and also offers international carrier services.

From January 2006, there will be a fourth business called Openreach. This business will be responsible for the nationwide local BT network which covers the “first mile” of wires that connects homes and businesses across the UK to their service providers. Openreach will provide communications providers with services and products associated with that network.

In the year ended 31 March 2005, BT Group’s turnover was £18,623 million with profit before taxation of £2,354 million.

BT Group plc is listed on stock exchanges in London and New York. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group.

For more information, visit www.bt.com/aboutbt

A wide selection of BT images are available for download via the image library at www.vismedia.co.uk.

About CyberGuard Corporation

CyberGuard Corporation (Nasdaq:CGFW) is a global provider of security solutions that protect business-critical information assets at Global 2,000 organizations and government entities. The company’s firewall/VPN, TSP(tm), Global Command Center(tm) and Webwasher(r) product suites comprise a comprehensive, integrated security system, which offers highly adaptive, scalable solutions that intelligently guard against network intrusion and content-based vulnerabilities, detecting and eliminating security threats in real-time for performance optimization. CyberGuard has deployed more than 250,000 products in organizations around the world to maintain the health and integrity of their enterprises. Headquartered near Boca Raton, Florida, the company has branch offices and training centers around the globe and can be located on the World Wide Web at www.CyberGuard.com.

Forward-Looking Statement
This press release contains forward-looking statements that involve certain risks, uncertainties and factors, including without limitation, those described in the Company’s filings with the Securities and Exchange Commission that may cause the Company’s future actual results to materially differ from the Company’s current expectations. The Company assumes no obligation to update any forward-looking statements.