Lockdown Reports 3Q

SEATTLE -- Lockdown Networks, the leading provider of Network Access Control (NAC) solutions that ensure all users and devices on the network comply with security policies, today announced it completed the third quarter 2006 with record sales. Revenue grew 30 percent over the previous quarter with strong sales traction in the United States, Europe and Mexico and customer wins representing a variety of market segments, including higher education, healthcare, government, finance and manufacturing. New technology innovation, successful third-party integration and an expansion of Lockdown's distribution channel led to continued momentum during the third quarter.

Key highlights of Lockdown Networks' third quarter financial and operational activities include:

• Record sales - Increased revenue 30 percent over second quarter 2006, and more than 600 percent from fourth quarter 2005, when the first NAC appliances shipped, setting a new quarterly revenue record for the company
• Customers - Acquired new enterprise customers in the third quarter, with exceptional growth in the higher education sector and new accounts in North America, Europe, Central America and the Caribbean
• Support for Microsoft NAP - Became the first NAC solution provider to ship product with full support for Microsoft NAP
• Technology innovation - Enhanced iNAC (intelligent NAC) policy environment in Lockdown Enforcer, enabling third-party security and network infrastructure products to collaborate in network access policy decisions and to share information and services critical to network and endpoint security
• New partnerships - Established a strategic co-development and OEM partnership with AEP Networks to integrate Lockdown Enforcer into AEP's Policy Networking security solutions, offering seamless security integration from the network through application layers; joint solution will begin shipping in November through AEP channel partners
• Product Enhancements - Set a new benchmark for NAC functionality by announcing support for enforcement on SSL and IPsec VPN clients, upgrades to Lockdown Commander to support very large-scale deployments, and enhanced functionality and ease of use for the agents

"Lockdown is continuing to set the agenda in the NAC arena by forging strategic partnerships and addressing the technology demands from customers across a variety of market segments," said Brett Helsel, CEO of Lockdown Networks. "Record sales in the third quarter validate Lockdown Networks' vendor-agnostic approach, which, combined with our iNAC offering, provides a solution that rewards our customers with maximum value and security on their investment. Lockdown Networks is well-positioned to build upon our success as we close out 2006 and enter the new year."

Lockdown Networks Inc.