1. BorderWare Security Platform Solution Update

2. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 2 Agenda  Market opportunity  Customer Requirements  BSP - Comprehensive Security  BorderWare Security Platform…a closer look  BorderWare Security Network

3. BorderWare Security Platform Market opportunity

4. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 4 Source: IDC, 2007 Convergence of Secure Content & Threat Management

5. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 5 Source: IDC, 2007 BorderWare Solutions Convergence of Secure Content & Threat Management

6. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 6 Market Opportunity $4,605$5,406$6,100$6,714$7,266 ($ in 000s) Source: Merrill Lynch. Source: IDC.  The Secure Content Management Market was a $6.2B market in 2005 and is growing at 16.3%  IT spending on security remains the top priority on CIO’s wish lists ahead of BI, desktop OS’s & applications, ERP and SOA/web services

7. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 7 Worldwide Secure Content Management Revenue by Segment, 2004-2010 ( $M) 2004200520062007200820092010 2005- 2010 CAGR (%) Antivirus3,693.04,331.35,012.75,693.36,360.76,823.97,283.011.0 Antispyware117.0294.5397.7485.9544.9575.0565.013.9 Web filtering 423.5549.0650.8732.6786.7861.0926.311.0 Messaging security 675.4919.01,210.11,553.41,901.52,369.22,804.425.0 Total4,908.96,093.87,271.48,465.39,593.710,629.211,578.713.7 IDC 2006 - Worldwide Secure Content Management 2006-2010, Forecast Update and 2005 Vendor Shares: The Convergence of Secure Content and Threat Management

8. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 8 Security Concerns 37% 39% 40% 44% 51% 52% 27% 33% 36% 38% 33% 49% 44% Mobile clients Increasing volume and complexity of network traffic Increasing complexity of security solutions Security Budget too small Business executives following security policy Increasing sophistication of attacks Employees following security policy 20062005 How would you rate the items below on the threat each poses to your company’s enterprise network security? (Scale: 5=Significant threat; 1= no threat) Top 2 boxes (rating of 4 or 5) IDC 2007

9. BorderWare Security Platform Customer Requirements

10. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 10 Today’s Extended Enterprise VoIP PDA’s Web Apps Enterprise Apps Proliferation of Threat Vectors Mobile Phones Office Apps eMail IM Laptops Data Leakage Brand Risk Legal Risk Privacy Data Leakage Brand Risk Legal Risk Privacy

11. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 11 Today - Perimeter Security Infrastructure Email Security IM SecurityWeb Security Lack of comprehensive security Complexity in management Limited scalability & redundancy Expensive to own & operate

12. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 12 Customer Requirements EmailWebIM Inbound Protection Outbound Content Infrastructure Management Ease of management Consolidated policy management Application specific reporting Availability and Scalability Distributed deployment – central management Modular deployment Application control Low TCO Reduce SPAM - employee productivity React quickly to new SPAM Protect against malicious scripts and Viruses DoS, DHA attack protection Protect against Phishing, Pharming, Spyware attacks Network Resources Pass compliance audits Intellectual property protection Privacy protection Reduce legal liability - acceptable use Data Leakage Protection Protect against malicious scripts and viruses Phishing/Pharming protection – embedded URLs – blended threat Privacy protection Reduce legal liability – acceptable use Access Control Audit and forensic analysis Data Leakage Protection HTML embedded viruses and malicious scripts Spyware/Malware protection Phishing, Pharming protection Monitor/block social networking sites – Facebook, blogs, wikis, etc Data Leakage Protection Reduce legal liability – acceptable use

13. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 13 The Analysts Agree… “As communications channels become more diverse, an effective content inspection policy needs to span not only e-mail but also Web mail, IM, blog postings, chat rooms and so on if it is to be comprehensive. Moreover, having separate policy and policy definitions, groups and directories is nonsensical…A single policy engine that can define communications policy across all modes of communications for groups and users is necessary…” Gartner 2006 “The key to scalability is to provide a component architecture for enforcement but with a single management layer to apply policy” Gartner 2006 “Content inspection, compliance, and retention policies must cut across all communications media rather than be silos in themselves. Organizations do not want to create a new Health Insurance Portability and Accountability Act (HIPAA) or ethical-wall policy for each communication medium.” Gartner 2006

14. BorderWare Security Platform Comprehensive Security

15. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 15 BorderWare Security Platform Protect  Virus, spam, malware, spyware, bots, zombies, image spam, …  Integrated - Email, Web, IM  Detect, correlate and block blended threats Control  Content Management  Meet compliance requirements  Enforce corporate policies Manage  Centralized Policy  Centralized Management  Scalable  High Availability

16. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 16 Web Drive by Downloads Malware, Spyware DoS, DHA, Protocol attacks Spam & phishing Blended Threats Multi-application Viruses, worms, Trojans BorderWare Security Platform Security for Email, IM and Web Acceptable Use Policy Real time monitor & block Policy enforcement Web reputation filtering Data Leakage Protection IP protection Accidental disclosure Anomaly detection Compliance Government regulations Industry compliance Email encryption

17. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 17  Reputation scoring for Web, email, IM, and VoIP  Half billion sources of threat information from email, IM, Web, VoIP  Proactive defense to block unwanted and malicious content at perimeter  Seamless integration with BorderWare Security Platform  Pinpoint accuracy with domain and user reputations Over Half Billion Sources Good Reject Comprehensive Security Real-time, multi-application reputation services BorderWare Security Network

18. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 18 Benefits Low TCO Comprehensive security Reduced complexity Investment protection High Performance BorderWare Security Platform Benefits Capabilities Integrated, appliance delivery, easy management 360 o security protection, control and management Integrated by design, single software platform Modular architecture On-demand scalability through intelligent clustering Enhanced messaging security made simple, scalable, and affordable

19. BorderWare Security Platform A closer look….

20. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 20 BSP Core Value Proposition Comprehensive Security Ease of Use High Performance Availability Lower Total Cost of Ownership (TCO)  50% less cost to own & operate Enhanced messaging security made simple, scalable, & affordable

21. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 21 Comprehensive Security: Real-Time, Proactive Threat Protection  Web, IM and Email  Integrated Protection  Reputation  Anti-Virus  Anti-Spam  Anti-Phishing  Zero Hour Virus Protection  Malware Protection  Comprehensive Content Monitoring and Filtering Intercept Engine Anti-Virus Anti-Spam Anti-Phishing DoS & DHA Threat Prevention Anti-Malware PROTECT

22. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 22 Detect & Block malicious email  Image analysis engine enhances to detect the latest variants of image spam  Intercept engine detects obfuscated URL’s to prevent blended phishing attacks PROTECT Improve Email Threat Detection admin@paypal.com Joe Victim http://www.paypal.com@%32%32% 30%2E%36%38%2E%32%31%34 %2E%32%31 %33

23. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 23 Detect & Block malicious email PROTECT Improve Spam Detection Legal Joe Victim Update 2  Detect and block PDF and ZIP spam

24. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 24 BorderWare Quarantine Server  Dedicated quarantine solution  Scales to 100,000 enterprise users  Policy-driven domain support  Customized plain text or HTML spam digest layout  Multiple languages  End user-defined Trusted and Blocked Senders Lists  Imported on a scheduled basis  View, release, trust or block sender, and delete messages directly from the spam digest message  Customize frequency of notifications and the language templates for the spam digest PROTECT Eliminate False Positives Improve Gateway Performance

25. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 25 BorderWare Quarantine Server  SP-1000 Quarantine Server  Up to 100,000 users  2 x Intel Xeon 3.2 GHz CPU with 2 GB RAM  4 x Gigabit Ethernet NIC  4 x 146 GB SCSI HDD (584 GB total, 292 GB effective), RAID 1+0, hot swap  2 x power supply, hot swap  SP-200 Quarantine Server  Up to 5,000 users  1 x Intel Celeron D 3.2 GHz CPU with 1 GB RAM  3 x Gigabit Ethernet NIC  1 x 80 GB HDD PROTECT New

26. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 26 BSP Weighted Dictionaries  Provides intelligent & granular enforcement of corporate & compliance policies  For example: >Diagnosis name by itself may not be a compliance violation >Diagnosis name, Patient Number & the word “terminal” may be a violation  Used for  Content scanning for email  Objectionable Content Filtering (OCF) for email, Web & IM  Spam dictionaries (email) CONTROL Reduce False Positives

27. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 27 IM Protocols & Clients  AIM (AOL)  AIM 5.9 or previous version for Windows  Apple iChat 3.1.5  Pidgin (GAIM) for Linux 1.5 & greater  XMPP/Jabber  Google Talk for Windows (Google Talk Web client is not supported)  Psi Jabber Client 0.10 for Windows  Kopete for Linux 0.12  Windows Live Messenger  Windows Live Messenger 8.1 for Windows  Yahoo! Messenger  Yahoo! Messenger 8.1 for Windows CONTROL Secure Popular IM Clients Rel 7.1

28. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 28 Download Size Limit for Web  Administrators define a size limit for Web downloads, files larger than this size will be blocked. Manage network resources MANAGE Rel 7.1

29. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 29 BSP Installation Wizard MANAGE Simplify BSP Installation

30. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 30 © Copyright 2007 BorderWare Technologies Inc. All Rights Reserved. 30 Reporting & Logging Enhancements  Report Generation  14 pre-canned reports  Derived from various system logs, then stored in the database  Ad hoc or scheduled  Pre-defined reports for Web & IM  Report Viewing  PDF format  Emailed to specific users  CSV and HTML formats  Separate Email, Web & IM Logs MANAGE Improve system visibility Rel 7.1

31. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 31 Centralized Management & Clustering  Centralized Management is a different & complimentary function to Clustering  Clustering  Used for high-availability  Load balancing of messages at a single site  Comprised of systems with identical configurations  Centralized Management  Used to centrally manage & monitor multiple clusters & multiple systems at many sites  Accommodates a heterogeneous mix of configurations MANAGE

32. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 32 Clustering MANAGE New York Clustered systems form a single logical unit The entire cluster is managed from a single node (the cluster Primary)

33. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 33 Centralized Management MANAGE Any BorderWare Security Platform can be licensed as the Centralized Management console New YorkLondonHong Kong

34. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 34 Centralized Management MANAGE  Manage multiple systems at the same time  Manage geographically dispersed systems on different network segments over LAN & WAN connections  Manage individual systems & clusters of systems  Ensure consistent configuration across all systems  Increase reliability, scalability & flexibility  Reduce Administration overhead  Supports global configuration & local policies  Centralized reporting & mail history searches  No extra hardware required  Totally secure & can be used over public networks  Cost option that must be licensed  30 day evaluation is available Simplify Administration & Deployment Rel 7.1

35. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 35 Centralized Management Licensing  To evaluate Centralized Management enable the 30 day evaluation license.  To use Centralized Management past the 30 day evaluation purchase a license key  License pricing is based on the number of managed nodes MANAGE

36. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 36 Centralized Management Licensing MANAGE New YorkLondonHong Kong  A license key is required to enable the manager system  Number of managed nodes = 8  Price = 8 x License price

37. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 37 Web & IM LDAP Authentication  Simplifies Web & IM user authentication & provides Cluster support  Web & IM users can authenticate by:  Local System Users where the user is defined directly on the BSP system & is suitable for single system deployments.  LDAP Mirrored Users where the user information is imported from an LDAP directory (i.e., mirrored) & is suitable for single & clustered system deployments.  LDAP Authenticated Users where the user is authenticated directly against an LDAP directory (i.e., not mirrored) & is suitable for single & clustered system deployments. MANAGE Simplify Deployment Rel 7.1

38. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 38 Configurable Web & IM Notifications MANAGE Enhance Policy Customization  Configurable notifications for sender, recipient & administrator  Configurable by Default, User, Group or Domain Policy Rel 7.1

39. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 39 Web & IM Activity Screens Displays connection time, message IDs, source, destination, status & final disposition. MANAGE Increase System Visibility Rel 7.1

40. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 40 Message History Searches Mail History has been replaced by Message History and searches across mail, Web & IM MANAGE Simplify Operations & Administration Rel 7.1

41. BorderWare Security Network

42. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 42 Reputation Services  Designed to combat Spam and unwanted content by measuring the reputation of message sources  Virtually all existing reputation services are limited to email  Most reputation services focus on email volumes  Increases in volume are interpreted as suspicious activity  Over reliance on past activity, ignoring current behaviour  Examples  SenderBase – Ironport – www.senderbase.org  TrustedSource – Secure Computing – www.trustedsource.org

43. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 43 April 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 43 Challenges with Reputation Service  Organizations suffer from  Incorrect assignment of poor reputation due to >Spoofed email >Shared mail relay >Shared IP by managed service  Assignment of poor reputation caused by >Botnet (infected PC) >Individual malicious user  Identifying real cause of poor reputation is difficult  Removal from block lists is difficult

44. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 44 April 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 44 Problems with ISP and Managed Services  Managed services and ISP provide mail relay service to many customers via a single (or multiple) IP addresses  As a result, customers reputation is shared among multiple organizations (domains)  If one organization is infected by a botnet or sends viruses  Resulting lower reputation across entire IP affecting all customers

45. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 45 BSN is “Next” Generation  BSN incorporates more than just spam and volume information, some examples:  BSN tracks recent virus behavior from IP addresses  Allows known virus senders to be outright rejected. Systems that have been accidentally infected can be temporarily rejected until they get clean  BSN classifies and tracks “dial-up” accounts  Can be used to reject all mail from dial- ups, which are often zombie and botnet systems  Good recipients vs. Bad recipients being tracked

46. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 46 April 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 46 BSN enhanced “Domain Reputation”  BorderWare Patent Pending technology for identifying reputation by domain and sender  Intelligently analyses and correlates  Overall IP address reputation  Domain name for each IP  User (envelope sender) from each IP

47. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 47 April 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 47 Domain Reputation Benefits  Shared mail relays and ISPs  Good senders maintain good reputation  Bad senders maintain bad reputation  Mitigate spoofed email  BSN tracks domain IPs that are sending good email  Attempts to send email from a different IP is detected as spoofed  Protection against Back Scatter (bounce back)  Isolate mailer daemon messages sending bounce backs  BSN prevents NDRs from affecting user's reputations

48. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 48 April 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 48 BSN Public Portal  Putting it all together… DEMO!  http://bsn.borderware.com/sand http://bsn.borderware.com/sand

49. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 49 BSN Server Nodes BSN Data Center Customer Systems Three Tier Architecture How does BSN work?

50. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 50 Using BorderWare Security Network BorderWare Security Network has distinct value propositions Product Integration Public Portal April 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 50

51. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 51 BSN Product Integration  Information from BSN can be used in two ways within the BorderWare Security Platform: 1.To reject connections during SMTP conversation >Known malicious senders can be rejected right away to prevent spam, spyware, and virus mail from being delivered >Rejects 60-90% of all bad messages at the front door 2.In the BSP Intercept decision strategy >Behavior information can be used to help decide message disposition >Provides “second opinion” for questionable emails

52. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 52 BSN Product Integration April 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 52 BorderWare suggested defaults: Intercept Connection Control Lenient Standard Aggressive Intercept Anti-Spam Aggressiveness

53. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 53 BSN Product Integration April 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 53 For those that like to dabble:

54. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 54 BSN Key Messages  BSN is next generation reputation solution offering proactive protection through behavioral analysis  Blocks 60-90% of all spam, viruses, spyware, and malicious content at the front door. As email volumes rise, your infrastructure costs don’t have to.  Provides a real time granular view of content from multiple users and domains. Better data means better results.  BSN is seeing what others are not. E.g. domain lookup data and “worst behaved” list.

55. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 55 Let’s get tactical  BSN = Door opener for new and existing customers  Target end users with high interest in their Internet reputation >Financial Services, Insurance, Retail, Government  Perform a BSN Domain look up for these prospects  Make it real for the prospect >Perform the same look up with SenderBase and Trusted Source in two other tabs within your browser >http://www.senderbase.org; http://www.trustedsource.orghttp://www.senderbase.orghttp://www.trustedsource.org  BSN is more accurate and granular over other reputations such as Sender Base and Trusted Source

56. August 2007© Copyright 2006 BorderWare Technologies Inc. All Rights Reserved. 56 Supporting documentation  Copy of Presentation  BSP FAQ on new features  Promotional information coming for existing customers.  Updated pricing which includes Centralized management

57. Thank You Q&A