WatchGuard Introduces New Security Services Solidifying Its Leadership in Unified Threat Management

WatchGuard Technologies, Inc. (Nasdaq:WGRD), a leading provider ofnetwork security solutions, today introduced new features to itsUnified Threat Management (UTM) appliances that significantly enhanceits position as a leader in the UTM market. WatchGuard's Firebox XCore and Firebox X Peak appliances that provide "Zero-Day" protectionthrough its proprietary architecture known as Intelligent LayeredSecurity (ILS) offer the broadest range of threat solutions availableon a UTM appliance, defending against spyware, spam, viruses,malicious sites and other intrusions.

Additionally, WatchGuard introduced a new version of itsmanagement software that enables large deployments of Firebox X Edgesecurity appliances to be centrally managed. With a unified console tomonitor and manage all supported devices, policies, VPNs, and securityservices, WatchGuard makes it easy for its customers to tailorconfigurations to meet their specific business requirements.

Advanced Security Services

With the scope of attacks continuously expanding, it is criticalfor network security vendors to offer a broad set of real-timedefenses that provide the levels of protection needed to meet today'sevolving threats. In addition to "Zero Day" protection that stops manymalicious attacks without signatures, WatchGuard provides the latestsecurity services integrated on Fireware Pro, WatchGuard's advancedsecurity and network operating system. These security servicesinclude:

spamBlocker -- spamBlocker is based on innovative technology thatanalyzes Internet message patterns, not the message data, resulting inreal-time spam detection in a fraction of a second before spam evenenters the network. This is done in partnership with Commtouch(Nasdaq:CTCH), which developed Recurrent Pattern Detection(TM) (RPD)technology predicated on the fact that the fundamental characteristicof spam is mass distribution. Rather than evaluating message content,the RPD technology analyzes large volumes of Internet traffic inreal-time to identify outbreaks as soon as they emerge. The RPDapproach results in the best service in the industry at distinguishinglegitimate communication from new spam outbreaks, blocking more than97% of unwanted emails, with very low false positives. Since manyphishing attacks, online scams, viruses and spyware are initiatedthrough spam, the spamBlocker solution is the first line of defenseagainst those threats. With processing done off the appliance, thereis minimal impact on network performance. WatchGuard's Firebox X Coreand Peak are the only UTM appliances to offer this real-time anti-spamprevention.

Gateway Anti-Virus/Intrusion Prevention with Spyware Protection(Gateway AV/IPS) -- Gateway AV/IPS is a signature-based integratedsecurity service that identifies and blocks suspicious networkactivity and malicious code in real-time. Dangerous traffic presentingitself as harmless, but attempting to exploit system vulnerabilities,is stopped before it can damage information assets. Gateway AV/IPSprovides an additional layer of protection against threats such asspyware, Trojans, buffer overflows, SQL injections, IM andpeer-to-peer usage, and policy violations.

Spyware is nefarious and WatchGuard provides protection through avariety of cooperative procedures. First, the IPS engine featuresSignature-based Content Inspection, which applies continuously updatedattack signatures to identify and block incoming spyware downloads,including covert drive-by downloads. WatchGuard does not stop atoffering only signature-based protection, but provides additionalcapabilities to combat spyware. The IPS engine identifies and blocksthe initial configuration communication required by spywareapplications to retrieve configuration data from the central server.Should an infected PC enter a secure network, the IPS engine willattempt to prevent spyware applications from using the networkconnection for additional spyware activities, such as transmittingkeylogs or passwords. WatchGuard's WebBlocker service also conductsSite Blocking, which blocks all traffic to and from known spywaresites -- and new sites as they are discovered.

Combining these procedures, which inspect both incoming andoutgoing traffic, with powerful anti-spam and URL filtering services,WatchGuard provides comprehensive spyware protection.

WebBlocker -- WebBlocker helps organizations save thousands ofdollars in lost productivity, reduced bandwidth usage, exposure toInternet scams, exposure to malicious code and legal liability bymanaging employee Internet access. The WebBlocker service employs adaily, incrementally updated database of more than 12 million URLs andprevents users from accessing liable, malicious and inappropriate websites -- including more than 8,000 sites known to distribute spyware.WatchGuard now allows for more fine-grained control of Internet usageby including up to 40 different website categories that can berestricted on a per user or per group basis.

WatchGuard System Manager (WSM)

In addition to enhanced security services, WatchGuard isintroducing a new version of its management software used to configureand manage its Firebox X family of security appliances. WSM nowenables centralized management of large multi-appliance andmulti-customer deployments including multi-box policy and firmwaremanagement for Firebox X Edge appliances. With a unified managementconsole, administrators can update groups of Firebox X Edgeappliances, view all appliances at a glance, and launch monitoring andconfiguration tools for pinpoint control of any device or service.WatchGuard's interactive real-time monitoring provides simple,graphical and textual depictions of security activity allowing theadministrator to take corrective or pre-emptive actions instantly.

WSM also eases the configuration process of WatchGuard's advancedsecurity services -- Gateway AV/IPS, spamBlocker, and WebBlocker --for rapid, reliable set-up of these important services. VPNdeployments are simplified through a Drag-and-drop VPN capability thatworks across multiple platforms and versions of WatchGuard appliancesoftware. Additionally, WSM's centralized logging and reportingenables detailed analysis of appliances to easily gather insight intosecurity, network and user activities.

Better Management, Better Services, Better Security

With these new enhancements and features, WatchGuard offers anall-in-one solution that provides more security with less effort. Therange of security issues faced by today's connected networks makes itimperative for organizations to work with flexible solutions that canbe easily upgraded to meet emerging threats. WatchGuard's UTMappliances offer strong security that can be augmented quickly withadvanced security services as user circumstances dictate.

"Combined with the Zero-Day protection of ILS, this expansion ofWatchGuard's capabilities provides our customers with industry-leadingprotection," said John Stuckey, WatchGuard vice president ofmarketing. "And improved management allows for this protection to beapplied to larger installations."

"As organizations evaluate security vendors they must take intoaccount the features needed beyond standard firewall capabilities,"said Charles Kolodgy, research director, Security Products, at IDC."WatchGuard's broad suite of security services and its robustmanagement functionality solidify its position as a leader in the UTMmarket."

Availability

These exciting new products and capabilities are expected to beavailable in November 2005. Existing WatchGuard customers runningFireware Pro with a current LiveSecurity Service subscription will beable to upgrade to WSM 8.2 free of charge. WatchGuard's SecurityServices are available for Firebox X Peak and Firebox X Core modelsrunning Fireware Pro. WebBlocker and Gateway AV/IPS customers with acurrent LiveSecurity Service subscription will be able to upgrade freeof charge. spamBlocker will be available on Firebox X Core and FireboxX Peak models running Fireware Pro, and MSRP varies by Firebox model.

About WatchGuard Technologies, Inc.

WatchGuard provides network security. The company's Firebox Xfamily of upgradeable appliances delivers the performance,functionality and security strength to meet the needs of organizationsof any size. WatchGuard's Intelligent Layered Security protectsagainst emerging threats and provides the platform to integrateadditional services offered by the company. All WatchGuard productsinclude a LiveSecurity Service subscription for vulnerability alerts,software updates, expert security instruction, as well asindividualized and self-help customer care. WatchGuard isheadquartered in Seattle, Washington, with offices throughout Europeand Asia. For more information, please visit www.watchguard.com.

Certain statements in this press release, including statementsabout expected new products, services, features or functionality, andother statements about our plans, objectives, intentions, andexpectations are "forward-looking statements" within the meaning ofthe Securities Act of 1934, as amended. Forward-looking statements arebased on the opinions and estimates of management at the time thestatements are made and are subject to known and unknown risks anduncertainties and inaccurate assumptions that could cause actualresults to differ materially from those expected or implied by theforward-looking statements. Our actual results could differ materiallyfrom those anticipated in the forward-looking statements for manyreasons, including the risk that expected new products, services,features or functionality are not available when expected or at all,and the other risks described under "Important Factors That May AffectOur Operating Results, Our Business and Our Stock Price" in ourquarterly report on Form 10-Q for the quarter ended June 30, 2005, andin our Securities and Exchange Commission filings from time to time.Readers are cautioned not to place undue reliance upon theseforward-looking statements, which speak only as of the date of thisrelease.

WatchGuard, LiveSecurity, Firebox, Core, Peak and Fireware areeither registered trademarks or trademarks of WatchGuard Technologies,Inc. in the United States and/or other countries. All other trademarksare the property of their respective owners.