Leading Security SaaS Provider Continues to be Recognized for Growth, and Market Vision

MILFORD, CT – November 15, 2007 – Perimeter eSecurity (which includes USA.NET), the provider of complete security on demand, announced today that it is the recipient of the 2007 Frost & Sullivan “North American Entrepreneurial Company Award for Managed Security.” This Award is presented each year to the company that demonstrated superior entrepreneurial ability in its industry during the research period. Frost & Sullivan, the global growth consulting company, presented the Award to Perimeter eSecurity for its exemplary execution of an original market strategy resulting in extraordinary growth. It reflects Frost & Sullivan’s belief that the company’s business strategy is sound and poised for continued success.

“Perimeter pursues a unique vision within the marketplace by providing ‘affordable’ security to a growing constituency of SMBs that are faced with an increasingly complex matrix of compliance requirements in their respective vertical markets,” said Loren Rudd, Industry Analyst, Information Communications Technology Group. “Price has proven to be the operative variable in furthering the development of the IT security industry from an almost esoteric thing, to being the type of service that can be used by smaller enterprises in more diverse and horizontal segments, and potentially consumers.”

According to Frost & Sullivan’s research, “The industry drive to pare cost from the business has fueled the faster than expected transition from CPE-based services to security delivered ‘in the cloud’. This fundamental structural change has occurred in recognition of the fact that the near and medium term future growth of this market lies with smaller, more price sensitive end users who have traditionally been challenged in adopting security solutions due to its complexity and unpredictable cost structure.” Frost & Sullivan expects that “Perimeter’s core business and partnerships with its network service providers and VARs will continue to deepen indefinitely as new client networks are added and prospects become increasingly lucrative.”

“As mid-market businesses catch up in security and compliance, they find that Perimeter is the only security provider to offer a complete suite of on-demand security services,” said David Cowan, managing partner of Bessemer Venture Partners. Cowan a co-founder of Verisign, has led investments in other on-demand security firms like Postini, Cyota and Counterpane. “Perimeter is the security company to watch for the coming decade.”

“We are honored to receive Frost & Sullivan’s Entrepreneurial Company of the Year Award,” said Brad Miller, CEO, Perimeter eSecurity. “Our mission is to make security available for all businesses and our approach of offering a complete suite of security services on demand (or as a service) is the only viable way to promote widespread adoption. I would like to thank Frost & Sullivan for recognizing our achievements and acknowledging our very bright future.”

In the third quarter of this year Perimeter received two funding rounds totaling $104 million from Goldman Sachs, Bessemer Ventures and Stripes group. Perimeter eSecurity has shown a revenue growth rate of 331% over the last 5 years as reported by Deloitte & Touche. The company ranked the 31st fastest growing security company in Inc. magazine’s Inc. 5,000 list of the fastest-growing private companies in the country. Perimeter was also recently positioned by Gartner in the Visionaries quadrant of the “Magic Quadrant for MSSPs, North America, 1H07” 1 report.

Rudd added, “Part of what makes Perimeter eSecurity’s market position convincing to Frost & Sullivan is that the security services market is decreasingly confined to early adopter verticals. Ultimately, it is the strategic consonance of Perimeter’s vision with what is widely held and indicated to be the future of this market that makes Perimeter stand out in 2007.”

Perimeter eSecurity, headquartered in Milford, Connecticut, offers security services delivered on an ‘in the cloud’ basis and/or through a CPE model. By partnering with network service providers, Perimeter is able to deliver more than fifty of its on demand security services to four thousand networks through a national network of seven strategically-located operating centers and three redundant datacenters. Perimeter also employs a layered security strategy that incorporates vulnerability defense, intrusion defense, network defense, email defense, system defense, and user defense.

1 Gartner Research “Magic Quadrant for MSSPs, 1H07” by Kelly M. Kavanagh and John Pescatore. August 1, 2007

About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company’s Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan’s Growth Partnerships, visit http://www.awards.frost.com .

About Perimeter eSecurity
As the only provider of complete security on demand, Perimeter eSecurity makes security easily available and affordable for all businesses. Perimeter’s on demand security services protect thousands of computer networks nationwide, offering more than 50 different services on a subscription basis in the areas of: Vulnerability Defense, Intrusion Defense, Network Defense, Email Defense, System Defense, and User Defense. With the proliferation of security threats and technologies, clients benefit from a single-source provider that offers all services through one pre-integrated platform and web portal. Perimeter’s security SaaS services are continuously expanded, enhanced and upgraded for current and future regulatory compliance. With seven geographically distributed technical offices and three redundant data centers, Perimeter’s complete, on-demand and affordable security services are always available and have been validated by multiple independent third parties. For more information about Perimeter visit www.perimeterusa.com .

For Further Information contact:
Cathy Clarke
CNC Associates
617-527-2089
cathy@cncassocs.com