Perimeter Internetworking Positioned in the Magic Quadrant
for North American Managed Security Services Providers (MSSP) 2H ‘05

Evaluation Based on Completeness of Vision and Ability to Execute

Milford, CT – January 23, 2006 – Perimeter Internetworking, the leading provider of multi-threat managed security services for community financial institutions, healthcare companies, service providers and other businesses with high data availability and security requirements, announced today that it has been positioned by Gartner, Inc. in the ‘Magic Quadrant for MSSPs, North America, 2H05’ ⁱ report.

In a separate report, Gartner states “Technology, social and business factors are coming together to allow common perimeter security functions - firewall, antivirus, anti-spyware, anti-phishing and the like - to be done by telecom carriers and Internet service providers without requiring complex and costly customer premises equipment. This approach can lead to decreases in prices and rapid security advances for home use of the Internet, as well as business use.�? ⁱⁱ

“We believe our positioning in the MSSP Magic quadrant by Gartner is a reflection of the creation of Perimeter’s multi-threat “Security-In-the-Cloud�? methodology,�? said Brad Miller, CEO of Perimeter Internetworking. “Offered as a subscription based, pre-integrated security utility, Perimeter has significantly reduced the time and work required to address pressing security issues without integration risk or headaches; in other words: No Assembly Required. Our rapid growth rate of over 540% in the last five years and our profitability over the last four is evidence of the effectiveness of this model.�?

According to the ‘Magic Quadrant for MSSPs, North America, 2H05’ ⁱ report, the managed security service (MSS) market in North America generated revenue of $936 million in 2004, and Gartner estimates revenue will reach $1 billion in 2005, showing an 11.4% growth rate over the previous year. The report also states that ITC services will allow telecom players to provide more-potent competition to established MSSP pure plays, but the telecom players have been slow to make the required business investments and market education efforts to move forward. ⁱ

About Perimeter Internetworking
Perimeter Internetworking™ is the leading provider of multi-threat, managed “Security in the Cloud�? services to financial institutions, telecommunications/Internet service providers, healthcare providers, and other firms with high data security and regulatory requirements. Perimeter offers over 50 managed network security services On Demand, including Intrusion Defense, Malicious Code Defense, Secure Email Services, Secure Access, Automated Compliance, and Network Services. Perimeter's unique centralized architecture offers best-in-class, pre-integrated technology with complete redundancy, continuous upgrades, complemented with a 24/7 engineering staff of trained subject-matter experts. Perimeter ranked 9^th on The Connecticut Technology Fast 50 in 2005 & 5^th in 2004. In addition Perimeter ranked 121 on the Deloitte Technology Fast 500 & has been profitable for the last four years.

Headquartered in Milford, CT, with four geographically distributed technical operations centers and three redundant datacenters, Perimeter's secure network services are validated by TruSecure and guaranteed for current and future regulatory compliance. For more information about Perimeter visit www.perimeterusa.com.

The Magic Quadrant is copyrighted December 30, 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

ⁱ Gartner Research “Magic Quadrants for MSSPs, North America, 2H05�? by Kelly Kavanagh, John Pescatore. December 30, 2005

ⁱⁱGartner Research: “Update on Emerging Technologies, August 2005�? by Alexander Linden, John Pescatore, Kelly M. Kavanagh, Jackie Fenn. August 18, 2005

Contact for Perimeter Internetworking 
Cathy Clarke
CNC Associates
617.527.2089
cathy@cncassocs.com

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