Breach Security Announces Completion of Series a Financing Top Tier U.S. Venture Capital Firm Leads Key Transaction

Top Tier U.S. Venture Capital Firm Leads Key Transaction

CARLSBAD, Calif., ~ August 10, 2004 ~ Breach Security, Inc., a leading provider of next generation, truly deployable application security products for large corporations and government agencies announced today the closing of its $7.5 million Series A financing.

The transaction was lead by Enterprise Partners Venture Capital, one of the premier venture capital organizations in the United States with over $1 billion under active management. Joining Enterprise in the investment were Pitango Venture Capital, Evergreen Partners and Ascend Technology Ventures.

Breach products are application security appliances that protect corporate and commercial applications, databases and the web presentation layer from attack by automated and human intruders.

Unlike early application firewalls and gateways, which depended upon rigid, hard-trigger signatures and costly, manual creation of policies as applications change, Breach products feature Adaption™, an automated, adaptive learning process that eliminates the need for manual policy development and hard configuration of protective products.

Because of Adaption, Breach products are sensitive to acceptable behaviors in applications as they change, uniquely monitoring and controlling both what enters and what leaves the network at extraordinarily low costs of deployment and ownership. And because the products are fast and simple to install, require no encoding of policies or signatures and no centralized maintenance or administration, they represent for the first time truly deployable application security alternatives. “Enterprise Partners is a great fund to have as a lead investor and we look forward to the substantial contribution the Enterprise team will make to our success,” said John Payne, CEO of Breach Security, Inc. “And the support of co-investors from Pitango Venture Capital, Evergreen Partners, and Ascend Technology Ventures is further validation for the work we are doing in the application security market space.”

“Application security is an exploding area of focus for large corporations and government agencies and we believe this transaction provides the Breach team with the added resources needed to serve that emerging market as a true leader,” said lead investor and Breach board member, Tom Clancy, of Enterprise Partners. ìThe need for application security has been known for some time but early offerings failed due to issues related to usability and Total Costs of Ownership. Breach provides truly deployable products that scale to large operations at low costs of ownership and high value to the customer.”

Breach Security products come to market in the 3rd quarter of 2004 after extensive testing and evaluation by Beta customers in the US and abroad.

About Breach Security, Inc.

Breach Security, Inc. is a leading provider of next-generation web application security that protects corporate-critical information. Breach effectively protects web applications of commercial enterprises and government agencies alike against Internet hacking attacks and provides an effective solution for expanding security challenges such as identity theft, information leakage, and insecurely coded applications. Breach’s solutions are ideal for any organization’s regulatory compliance requirements for security.  Breach was founded in 2004 and is headquartered in Carlsbad, Calif. For more information visit: www.breach.com.

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Media Contacts:

Breach Security, Inc. U.S.

Dan Chmielewski, Principal
Madison Alexander PR, Inc.
dchm@madisonalexanderpr.com
(949) 231-2965