Fortinet Complies With International Trade Commission (ITC) Ruling, U.S. Business Continues Uninterrupted

Antivirus Software Enhancements Expected to Avoid Trend Micro Patent

SUNNYVALE, Calif., August 9, 2005 - Fortinet - the pioneer and market leader of Unified Threat Management and only provider of ASIC-accelerated, network-based multi-threat security systems for real-time network protection - today announced plans to address a U.S. International Trade Commission (ITC) ruling received on August 8, 2005 regarding a patent infringement complaint filed by Trend Micro. Without interruption to its U.S. operations or customers, Fortinet is accelerating development and delivery of enhanced antivirus software intended to avoid the technology covered in Trend Micro's patent and deliver increased benefits to customers.

The ITC's ruling is limited to the U.S. and affects only the antivirus component of Fortinet's best-in-class security applications suite, which consists of seven dedicated security applications - firewall, VPN, intrusion detection/prevention, antivirus, web filtering, antispam and traffic shaping -- deployable collectively or separately on its FortiGate™ integrated unified threat management platform. More than 70 percent of Fortinet's revenues are derived internationally and the ITC ruling has no affect on Fortinet's international operations.

Of paramount importance, the ITC ruled that Fortinet can continue to provide service and support in a business as usual manner for all U.S. customers, including customers with Fortinet's antivirus functionality. This includes ongoing maintenance releases and antivirus signature updates. Additionally, Fortinet U.S. channel partners can continue to sell their current Fortinet inventory to customers, including the antivirus application, as well as support contracts.

"Fortinet firmly believes we do not infringe on Trend Micro's antivirus patent," said Ken Xie, founder, president and CEO of Fortinet, Inc. "We are committed to ensuring that our U.S. business operates as usual with no impact to customers and partners, and we are confident that our forthcoming antivirus software enhancements will avoid Trend's patent."

Fortinet's antivirus software enhancements will deliver improved security, performance and throughput to customers with no impact to existing network deployments. The software enhancements will be available to customers and partners during the next 60-90 days as part of a normal FortiOS support release. Once these enhancements are deployed, Fortinet expects to return to a "business as usual" mode in the U.S.

About Fortinet (www.fortinet.com)
Fortinet is the confirmed leader of the Unified Threat Management market. The company's award-winning FortiGate™ series of ASIC-accelerated multi-threat security systems, winner of the 2004 Security Product of the Year Award from Network Computing Magazine and the 2003 Networking Industry Awards Firewall Product of the Year, are the new generation of real-time network protection systems. They detect and eliminate the most damaging, content-based threats from e-mail and Web traffic such as viruses, worms, intrusions, inappropriate Web content and more in real time - without degrading network performance. FortiGate systems are the only security products that are quadruple-certified by the ICSA (antivirus, firewall, IPSec, NIDS), and deliver a full range of network-level and application-level services in integrated, easily managed platforms. Named to the Red Herring Top 100 Private Companies, Fortinet is privately held and based in Sunnyvale, California.

 




QUICK FACTS
Year Founded
2000
Stock Symbol
NASDAQ: FTNT
Headquarters
Sunnyvale, California
Number of Employees
1,200+
Financial Highlights
FY09 Revenue: $252M
$260M+ cash and no debt
Profitable
First Product Release
May 2002
Units Shipped to Date
500,000+
Customers
75,000+ customers
Market Leadership
Top 4 Largest Network Security Appliance Vendor
Patents
40 patents
100+ patents pending
Industry Accolades
80+ awards, including:
Security Product of the Year
Best Integrated Security Appliance
Best IPS solution
Top Mid-market Solution
2006 Technology Pioneer
7 ICSA security certifications
NSS certified (UTM)
ISO 9001 certified
Corporate and Securities Counsel
Wilson Sonsini
Goodrich & Rosati
Palo Alto, California
Auditors
Deloitte Touche Tohmatsu
San Jose, California



FortiGate appliances allowed us to have our security grow with the needs of our network infrastructure, evolving from 200 Mbps to 1 Gbps performance over time. With Fortinet's firewall solution, we control what comes in and out of our data centers, and we have been able to include new applications in our service catalogue without jeopardizing the availability and security of our core systems.

Frank Santana., IT Architect
Vopak