Sophos exceeds growth forecast expectations for fiscal 2005, ahead of industry-average

September 26, 2005 Sophos Press Release

Lynnfield, MA - Sophos, a world leader in integrated threat management solutions, today announced the company's financial results for fiscal year 2005. The company reported an increase in annual revenue of 19.2% to £66.2 million ($122.6 million USD), with the North America subsidiary contributing 31% of the overall worldwide revenue.

The company's continued growth is attributed to strategic investments in product research and development, key additions to the company's executive team, as well as industry-unique product offerings. Sophos continued to focus on supporting its customer base, which includes FORTUNE 500 clients, while adding new customers this year such as Heinz Company (NYSE:HNZ) and Wellesley College.

As part of the company's executive team expansion, Steve Munford, formerly president for North America, was appointed as the company's chief operating officer and Mark Hatton was appointed to president, Sophos North America. Sophos also appointed former McAfee executive Mark Harris as director of SophosLabs, Sophos's growing global network of threat analysis centers. At McAfee, Harris was director of engineering for the company's spam products. Charles Southey was named vice president of IT and Wendy Dean was appointed vice president of engineering to drive the future direction of Sophos's integrated product line.

In fiscal year 2005, Sophos announced major advances to its enterprise-class product line that includes protection for each entry point on the network. The company launched Genotype™ detection technology, allowing organizations to further reduce exposure to unidentified threats and unwanted content. This technology uses forensic analysis to identify suspicious patterns and characteristics that are unique to either a virus family or a spam campaign. Sophos was also one of the first companies to attain spyware certification and now analyzes and protects against more than 500 new spyware samples every month. Sophos also introduced its ZombieAlert™ and PhishAlert™ services. ZombieAlert is the first service of its kind to identify "zombie" computers on an organization's network. PhishAlert is an early-warning system that notifies online businesses of new phishing scams targeting their customers.

"The past year we've seen the number of new threats increase significantly and the nature of those threats is changing. We're seeing an escalation in targeted, financially-motivated attacks against organizations," said Mark Hatton, president of Sophos, North America. "Companies now need to look at new integrated defense strategies to protect themselves. This year we've focused on investing in SophosLabs™ cross-threat expertise and have taken an integrated multi-tier approach to threat management to ensure our customers in corporate, education and government organizations continue to be protected now and in the future."

"Sophos is providing a unified solution that consolidates robust protection across all the vulnerable tiers so users can avoid the expense and uncertainty of integrating a range of solutions from different vendors," said Chris Christiansen, IDC VP of Security Products.

Sophos's growth is projected to increase in fiscal year 2006 with the release of new security products including new versions of enterprise solutions, with added firewall, adware and gateway protection capabilities delivered early next year.