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Zone Labs Secures $24.5 Million in Series C Funding Round

SAN FRANCISCO--(BUSINESS WIRE)--May 22, 2002--Additional Funding to Fuel Fast-Growing Endpoint Security Company's Continued Enterprise Market Penetration and Growing International Market Presence

Zone Labs*, Inc., the leading creator of endpoint security solutions, announced today that it has secured $24.5 million in growth capital through a Series C financing, based upon a significantly increased valuation for the company. New investors include JK&B Capital, BA Venture Partners and Capital Guardian Trust Company. They join a strong list of previous investors including EastWest Venture Group, Intel Capital, Oxford Bioscience Partners, Pacific Venture Group, and Visa International. Credit Suisse First Boston acted as financial advisor to Zone Labs.

"It is especially noteworthy that premier investors like JK&B Capital, BA Venture Partners and Capital Guardian Trust have invested in Zone Labs, given the recent economic climate in technology investments," said Gregor Freund, CEO and co-founder, Zone Labs. "Their strong support for our company and technology underscores Zone Labs' core mission of securing every network endpoint, whether located in global enterprises or in consumers' homes, from the threats posed by malicious hackers, targeted attacks and spyware."

In addition, the company announced that Thomas Neustaetter of JK&B Capital is joining the Zone Labs Board of Directors.

"Zone Labs is widely recognized for innovation in its technology and its business model, resulting in rapid business expansion and the creation of one of the most trusted brands in the security segment," said Thomas Neustaetter, partner, JK&B Capital. "The company is led by an experienced management team that consistently demonstrates their ability to execute and deliver superior technology and strong partnerships that cement enduring customer relationships."

Zone Labs solutions protect more than 17 million Internet users in global enterprises, small businesses and homes from the threats posed by hackers, data theft and malicious code. Zone Labs Integrity(TM), the company's enterprise endpoint security management platform, is enjoying widescale adoption among numerous global organizations and earned the prestigious "Deploy" rating in InfoWorld's recent hands-on review. The company's Internet security utility ZoneAlarm(R) Pro earned the "Product of the Year" designation by industry analyst firm Frost and Sullivan, "Best Security Product" by the editors of PC World as well as receiving Editors Choice Awards from the editors of CNET, ZDNet and PC Magazine.

"BA Venture Partners foresees a dramatic increase in the threat to enterprise and personal computing stemming from the trends driving increased remote access to corporate networks and always-on home Internet connections," said Rory O'Driscoll, managing director, BA Venture Partners. "As more people need to be connected 'away' from their offices, these threats compound and the need to secure personal computers becomes even more urgent. Zone Labs' technology, team and market leadership made them our choice for investment in the important emerging market for endpoint security."

The equity raised will be used to accelerate building the necessary support and sales infrastructure for further growth in the enterprise segment of Zone Labs' business, while also helping the company to expand its international presence. Currently, the company is selling its products through multiple channels to customers in North America and Europe. Zone Labs also benefits from strong strategic relationships with organizations including Cisco Systems, EarthLink, EDS, iPass, Linksys, Motorola, and NEC.

"The fact that today, a user may access corporate resources from within the trusted network environment and tomorrow be coming from a completely different, untrusted location is critical to understand for network security. Viruses, Trojan horses, inappropriate configurations or rogue software all create risk, particularly when moving from trusted to untrusted networks," said Pete Lindstrom, director, security strategies, Hurwitz Group. "Constant vigilance is required to protect against these threats. The strength and versatility of Zone Labs' endpoint security products has made them an important piece of the security architecture for enterprises, while raising the bar for other products to meet in the endpoint security space."

"The need for strong endpoint security solutions is validated every time a customer tells us how Zone Labs products halted a new network threat before it could do damage to information assets or productivity," said Irfan Salim, president and COO, Zone Labs. "We are building our business for long-term success with our patented technology, global partnerships, award-winning products and prudent management; this investment will fuel our growth both domestically and internationally."

About JK&B Capital
BJK&B Capital is a $900 million venture capital firm based in Chicago. JK&B was founded in 1996 with the belief that in addition to capital and financial savvy, successful venture investing requires unique relationships and in-depth industry and technical expertise in order to identify the most attractive investment opportunities and consistently add value to portfolio companies. JK&B portfolio companies include: Exodus Communications, Openwave (, Commerce One, Interwoven, CoreTek, Selectica and SilverStream. Information about JK&B Capital is available on the Internet at

About BA Venture Partners
BA Venture Partners, a venture capital partnership, leads start-up to expansion stage investments in networking, semiconductor, software, and biotechnology companies. BA Venture Partners closed BA Venture Partner VI, a $500 million fund in 2000. BA Venture Partners' sole limited partner is Bank of America.

About Zone Labs, Inc.
Zone Labs*, one of the most trusted brands in Internet security, is a leading creator of endpoint security solutions protecting millions of PCs from risks posed by hackers and data theft. The company's award-winning endpoint security product line is deployed in global enterprises, small businesses and consumers' homes, protecting them from Internet-borne threats. Zone Labs Integrity(TM) is an endpoint security management platform that protects corporate data and productivity while ZoneAlarm(R) and ZoneAlarm Pro are among the most popular and successful Internet security products available today.

Founded in 1997, Zone Labs is a private company headquartered in San Francisco, Calif., U.S.A., with European headquarters in Frankfurt, Germany. For more information, please visit Zone Labs at

Editor's Notes: TrueVector, ZoneAlarm, the Zone Labs logo and Zone Labs are registered trademarks of Zone Labs Inc. Zone Labs Integrity is a trademark of Zone Labs Inc. AlertAdvisor is a service mark of Zone Labs Inc. All other trademarks are the property of their respective owners. Zone Labs Integrity protected under U.S. Patent No. 5,987,611. Reg. U.S. Pat. & TM Off.

CONTACT:Zone Labs Te Smith, 415/341-8233 or McAlister PR Paul Rafferty, 972/234-2051

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