Marh 30, 2004

Deepnines lands $16m investment to fuel growth plans for their perimeter security platform solution

DALLAS, TEXAS - DeepNines, the only software company to offer a leading integrated security platform deployed in front of the router to prevent network intrusion before it strikes down a network, has announced that it has secured $16M of venture capital funding. The funding was co-led by Dawntreader Ventures, Insight Venture Partners and EFO Holdings. The additional funding will allow DeepNines to dramatically expand its operations, aggressively grow its vertical market presence while continuing to deliver a well-positioned perimeter security architecture strategy. Their DeepNines Security Platform offers firewall, intrusion prevention, and best-in-class gateway anti-virus functionality which is integrated into a comprehensive security platform and strategically deployed in front of the router.

"DeepNines Technology is inherently unique by virtue of the fact that it is the only company with a perimeter security platform solution that is deployed in front of the router thereby providing enterprise markets with a proactive and dynamic security approach," said Edward Sim, Managing Director at Dawntreader Ventures. "When you combine their experienced senior management team and a well defined business plan it clearly positions them for tremendous growth, and that is why we were so excited to have the opportunity to invest" said Mr. Sim.

Scott Maxwell, Managing Director at Insight Venture Partners added, "We are incredibly impressed with DeepNines' unique technology. It is our belief that a layered security model must start at the edge of a network and be combined with a security policy that can be implemented and practiced day in and out in a dynamic way. A Company's security strategy can not be solely dependent on a router to perform overall security functionality or they will be at considerable risk!" Mr. Maxwell continued, "This investment demonstrates our support of the company's vision and reflects our confidence in the incredible opportunity that DeepNines has ahead of it."

Security will remain the number one issue facing CIOs in 2004 both in software and network solutions. Recent surveys indicate that CIOs will spend a majority of those dollars towards projects that resolve security needs. DeepNines is positioned to capitalize on this macro trend. DeepNines Sleuth9® Security Software sits invisibly in-line, front of the router, providing IT departments with the ability to protect all the various devices that are exposed to vulnerabilities, including the router. Only DeepNines with its unique position at the network perimeter prevents malicious code from ever entering the network and causing costly damages.

"Securing this round of funding and adding both Scott Maxwell and Edward Sim to our Board of Directors will allow us to move forward with our aggressive growth plans and extend our leadership position in the Security Intrusion Prevention market," said Dan Jackson, President and COO for DeepNines. "DeepNines truly has a disruptive technology and the infusion of capital combined with the experience our partners bring will undoubtedly take the company to the next level. Dawntreader and Insight Venture Partners have a tremendous history of bringing value beyond the influx of capital to the companies they invest in and we are excited to move forward with their support and expertise."

About Dawntreader Ventures Dawntreader Ventures (formerly SoundView Ventures) is a venture capital firm focused on building market leading technology enterprises in partnership with entrepreneurs and management teams. Dawntreader Ventures has approximately $300 million under management focused on early stage technology investments. Representative portfolio companies include Metapa, netForensics, Proactivenet, Expertcity (GoToMyPC), and DeepNines Technologies. Visit Dawntreader at www.dtventures.com

About Insight Venture Partners Insight Venture Partners, with approximately $1 billion in funds under management, is the leading venture capital firm specializing in enterprise software companies. Insight invests in entrepreneurial companies developing technology-based solutions for the corporate enterprise. Headquartered in New York, Insight has taken a global approach to e-commerce investing in a market where speed, domain expertise, and the ability to execute are the foundations of success. More information on Insight is available at www.insightpartners.com

About Deep Nines Inc. DeepNines offers a scalable security platform for Global 2000 companies with a vertical market focus in education, government, telecommunications, energy and financial services. The DeepNines Security Edge PlatformT integrates intelligent firewall, intrusion prevention, best-of-breed secure content management, forensics and reporting. It operates outside the network infrastructure, improving organizations' security "deep into the nines." DeepNines' Security Edge Platform, the company's patent-pending security system, is a fully automated signature and behavior-based, intrusion prevention and traffic management system preventing known and unknown attacks from entering an organization's network. The Security Edge Platform runs on Solaris and Linux platforms from Sun Microsystems. To learn more about Deep Nines visit www.deepnines.com.