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IMlogic Reports Record Quarter As Revenue Jumps 200%

Fueled by Exponential Surge in IM Threats, IMlogic Surpasses One Million Enterprises Seats Under Management

July 11, 2005

Waltham, MA, July 11, 2005 - IMlogic Inc., the global market leader for instant messaging management and security software, today announced Q2 2005 financial performance highlighted by a greater than 200% increase in quarterly revenues over the previous year. Spurred by the rapid adoption of instant messaging management and security within corporate environments, IMlogic increased its customer base to over 600 enterprise customers and over one million seats under management, including deployments in greater than 25 percent of the Fortune 100.

“We are very pleased with our Q2 results which exceeded expectations on all fronts, including revenue, number of customers and number of seats,” said Francis deSouza, President and CEO of IMlogic. “We are especially pleased by the breadth of our revenue growth. We closed several large multi-national enterprise-wide deals, while at the same time our small and medium-sized business delivered a record number of new deals. Additionally our revenue was spread across several industries including pharmaceutical, technology, consumer goods and financial services.”

New customers added this quarter include two of the top three largest pharmaceutical companies in the world, one of the largest food and beverage companies in the world, the leading payroll and benefits administration company, and the UK’s leading independent television station. In addition, IMlogic announced a strategic partnership with Postini, the managed services leader for e-mail perimeter security, to deploy an integrated e-mail and IM management service to more than 5,000 customers and over seven million seats.

“IMlogic’s explosive growth is indicative of the surge of IM use within enterprises and the increased awareness of the associated security risks,” said Howard Schmidt, former White House Special Advisor for Cyberspace Security who joined IMlogic’s Advisory Board in May. “The past three months saw the biggest spike yet in IM-related security threats with a 2700% increase as highlighted in the IMlogic Threat Center Q2 2005 report. Enterprises are on the front lines of these new real-time threats and need to address their critical IM security and compliance needs.”

According to a recent study published from Osterman Research, IM is now present in 90 percent of organizations, up from 63 percent of organizations in 2001. However, the vast majority of IM usage is unmonitored and unprotected, creating openings for viruses, spam, worms and unknown breaches of corporate compliance and information security policy.

IMlogic IM Manager 7.0™, launched earlier this year, is the market-leading IM management and security solution, meeting the most rigorous requirements for management, compliance, and security demanded by the largest enterprises. “The new and enhanced features in IMlogic IM Manager 7.0, including the industry’s first Real-Time Threat Protection integrated with the IMlogic Global Threat Center, have further extended our technology lead and demonstrate our strong commitment to remaining the leader in the market,” said deSouza. “The expanding IM market, combined with our strong customer base, committed employee base and technology advantage makes us very confident of our continued financial success.”

About IMlogic, Inc. IMlogic, Inc. is the market leader in enterprise software for instant messaging, the world’s fastest growing communications medium of all time. The largest Fortune 1000 companies across the financial services, energy, healthcare, government, media, telecommunications, technology, and manufacturing industries depend on IMlogic to manage, control and secure corporate IM usage, while satisfying compliance requirements associated with real-time electronic communications. For more information on IMlogic call 877-IMlogic or visit www.imlogic.com.