1. © Copyright 2004 Frost & Sullivan. All Rights Reserved. World Managed Security Service Provider Markets Convincing Value Proposition Essential for Managed Security Services to Reach Critical Mass Security Technologies Group “As the MSSPs competence and capabilities improves, larger enterprises are beginning to consider outsourced security alternatives to derive cost and time savings and most importantly to focus efforts on core competencies.”

2. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Industry Trends The managed security services (MSS) market remains extremely fragmented Legislative requirements emerge as the biggest market driver Use of customer premise aggregation/correlation devices has become commonplace Prices stabilizing due to increased value of expanded services scope Pure play MSS providers (MSSPs) have been the focal point of growth Emphasis on the small and medium enterprises by those previously focused on larger enterprises Merger and acquisition activities continue in the MSS market MSSPs earning the trust and confidence of the market Increased demand for intrusion prevention services (IPS)

3. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Key Features Frost & Sullivan Provides: Detailed insights into recent developments and trends Drivers, restraints, challenges, and strategic recommendations Analyst insights on ‘hot topics’ and emerging applications in the market Market sizing and competitive analysis Market forecasts and opportunity analysis Quarterly assessments End-user analysis within each report

4. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What We Offer Coverage: North America, Europe, Asia Pacific, and Rest-of-World Proven methodology encompassing extensive primary and secondary data and research Focused information and strategies that cover business and technology issues Credible data and analysis highlighting industry dynamics Winning strategies to help you create precise business plans

5. © Copyright 2004 Frost & Sullivan. All Rights Reserved. Who Will Benefit? Current Market Participants Find out how you compare to the competition Assess current and future drivers and restraints Determine and exploit market share opportunities through new end-user application demand New Entrants Analyze challenges associated with the industry Calculate forecasts for end-user growth potential Position yourself to capitalize on the market’s unmet needs Investment Community Analyze long-term strategies of MSS companies Determine which participants will outperform the competition Assess attractiveness of investing in the MSS market

6. © Copyright 2004 Frost & Sullivan. All Rights Reserved. What’s Included Internet Protocol-based Virtual Private Network (IP VPN) Firewall Intrusion Detection/Prevention Systems Vulnerability Assessment Pre-implementation and Penetration Testing Services Event Correlation Systems

7. © Copyright 2004 Frost & Sullivan. All Rights Reserved.  Activis  AT&T  Aventail Corp.  Counterpane Internet Security, Inc.  CSC  Electronic Data Systems Corp. (EDS)  IBM Corp.  Infonet Services Corp.  Internet Security Systems  Level 3 Communications, Inc.  LURHQ Corp.  NetSec Key Market Participants  PresiNET Systems Corp.  Qwest Communications international, Inc.  RedSiren  SBC DataComm, Inc.  SecureWorks, Inc.  Sprint  Symantec Corp.  TruSecure Corp.  Ubizen N.V.  Unisys  VeriSign, Inc.  Verizon

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