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8e6 Technologies Marks Third-Quarter Progress With Product Launches, Positive Reviews and Record Sales

Company Witnesses Strong Financial Performance in First Three Quarters of 2004

8e6 Technologies, a leading provider of appliance-based Internet Filtering and Reporting solutions, is proud to mark the end of the third quarter of 2004 with increased revenue, successful product launches, positive trade media attention and strong financial performance.

Maintaining growth in areas such as education, healthcare, government, and business enterprise, 8e6 Technologies surpassed its financial goals. The first half demonstrates growth from new large accounts, improved financial performance, and the launch of a new set of distinct products and upgrades including TurboPipe NP and the R3000.

--  8e6 demonstrated strong financial performance during the first three
    quarters of 2004; sales for the third quarter of 2004 were up 44% over
    2003. In addition, the company has experienced record sales for seven of
    the first nine months of 2004.

--  The company's flagship product, the R3000 Enterprise Filter, released
    in November 2003, has received positive response from both new and existing
    customers as well as from the trade press. The R3000 was reviewed in PC
    Magazine in March 2004: "simple to install" and "staying true to its
    original goal, the R3000 is still best for large companies and those with
    multiple locations." The R3000 received similar positive reviews in Network
    Computing and Information Security Magazine.

--  Since the R3000's release, 8e6 has issued several upgrades and
    additional features, further establishing the R3000 as the leading Web
    filtering appliance. These additional features include increased
    authentication capabilities for LDAP and Active Directory, the addition of
    "Intelligent Footprint Technology" (IFT) for identification and control of
    Instant Message and "peer-to-peer" (P2P) network traffic, and enhanced
    synching capabilities between multiple R3000 servers.

--  8e6 also launched TurboPipe NP, an innovative traffic-shaping
    appliance that allows network administrators to guarantee that necessary
    bandwidth is available for mission-critical applications.

--  Most recently, 8e6 has released a new, lower-priced appliance, the
    R3000 MSA, and new features aimed specifically at the K-12 education
    market.
    

"We're very pleased to report continued successes at 8e6," said George Shih, Co-Founder and CEO. "We believe the market for network security appliances will continue to grow and we have positioned 8e6 to capitalize on that growth." Industry analyst IDC forecasts the Secure Content Management appliance market will grow at a 54.4% CAGR through 2008.

8e6 is one of the few remaining major Internet Filtering and Reporting solution providers that remains "privately held." "While is it not our policy as a privately held firm to disclose details of our financial performance, we are proud to say we have been both cash-flow positive and GAAP profitable for the first three quarters of 2004," added Mr. Shih.

About 8e6 Technologies

8e6 Technologies is a privately held provider of appliance-based URL filtering, Web-use reporting, IM/P2P control and bandwidth management solutions. Since 1995, 8e6 has provided scalable network solutions to enterprise, SMB and education customers worldwide. Located in Orange, California, 8e6 assists its customers in reducing liability, improving employee productivity and preserving network resources. For more info regarding 8e6 Technologies, visit our Web site at www.8e6.com.