Acton, MA – March 1, 2005 – eIQnetworks™, Inc. (www.eIQnetworks.com), a pioneer of comprehensive security and systems management solutions for the enterprise, today announced record revenue growth and increasing depth and strength in its continuously expanding global channel and strategic partner programs in fiscal year 2004. In a signal the marketplace is clearly embracing eIQnetworks’ industry-unique, holistic approach to Security and Systems Management solutions, the Company closed 2004 with record 300% year-over-year growth in sales revenue by increasing its global customer base by over 250%. The Company’s products are used in more than 50 countries around the world and are currently deployed in over 1000 companies and government agencies worldwide.

Additionally, eIQnetworks significantly bolstered its channel partner and strategic OEM partner portfolio by adding market-leading information security solutions providers. These OEM partners distribute eIQnetworks’ solutions as either private labeled “Powered by eIQnetworks” solutions or as “Preferred Solutions” through their respective direct sales force and channel partners.

A number of significant accomplishments contributed to eIQnetworks’ success in 2004, including:

• 300% year-over-year revenue growth across all Security and Systems Management solutions;

• 250% growth in global customer base;

• Continued growth in the Company’s strategic OEM partnership programs with the addition of NEC, Fortinet, Astaro, TopLayer, NetContinuum, Inkra Networks and iPolicy Networks;

• 125 channel partners in over 50 countries to serve growing global customer base;

• The launch of Network Security Analyzer, an award-winning SEM solution that delivers the industry’s most comprehensive security event monitoring, alerting and reporting capabilities across the enterprise-wide network security infrastructure;

• Winner of the coveted SC Global Awards 2004 for Best Networking Solution, awarded by the editors of SC Magazine;

• Recognized as a Finalist in Best Computer Forensics Solution, SC Global Awards 2004;

• Finalist in the Best of Interop 2004 Awards in the Security Category;

• Finalist in the Datamation Product of the Year Awards, awarded by the editors of Datamation Magazine.
  

eIQnetworks is a Cisco AVVID Partner, Check Point OPSEC partner, Secure Alliance partner and is a Microsoft Gold Certified Partner. The Company worked closely with Microsoft in 2004 in publishing a joint case study highlighting how eIQnetworks MailAnalyzer helps end user customers save significant costs while migrating to Exchange 2003 and the advantages of migrating to Exchange 2003.

“2004 was a watershed year for eIQnetworks. Our success in the channel, powered by eIQnetworks co-branded OEM partnerships and record sales revenues, reflects the true requirements of the marketplace; a marketplace that is clamoring for effective, affordable solutions and a holistic approach to protecting the enterprise IT infrastructure,” said Vijay Basani, chief executive officer of eIQnetworks. “Our successes in 2004 serve to drive us even harder in 2005. The threats to the IT security in general are only becoming that much more complex and, unfortunately, more innovative. We’ve made it our mission to drive even more sophistication and innovation into our comprehensive security and systems management solutions through an aggressive product roadmap, and strategic partnerships through 2005 and beyond.”

eIQnetworks’ Value: Increasing Key Capabilities, Reducing Total Cost of Ownership
In its efforts to level the playing field for customers of all sizes and with networks of varying size and complexities, eIQnetworks has developed a pricing and distribution strategy designed to maximize security event management performance (delivering real time monitoring, alerting, forensics analysis and reporting) while significantly decreasing total cost of ownership (TCO). With a pricing model of $795.00 per network device, for the first time in the industry, customers of any size regardless of budget, can afford powerful, effective and holistic monitoring and analysis solution to gain insight into their overall IT security and protect their most valuable IT assets while complying with new regulatory requirements such as Sarbanes-Oxley, GLBA and HIPAA.

About eIQnetworks
Founded in 2001, eIQnetworks is an award-winning provider of Security and Systems Management Solutions that deliver security-critical forensics, archiving, correlation, alerting, risk analysis, reporting as well as real-time event monitoring for information security professionals in multiple industries worldwide. The Company’s products are used in more than 50 countries around the world and are currently deployed in over 1000 companies and government agencies, including LL Bean, Hess, Sprint, Avaya, MCI, Malaysia Telecom, Fujitsu, Unisys, Fiberlink, Boston.com, FCC, US Army, US Navy, Wachovia, Citibank, HP, ADP, Bertelsmann, UBS, KPMG and many more. eIQnetworks’ solutions are available worldwide through an extensive, global distributor network. For additional information, visit www.eIQnetworks.com.

eIQ Press Contact:
Mariah Torpey
Davies Murphy Group, Inc.
781-418-2404
eIQ@daviesmurphy.com

eIQnetworks and the eIQnetworks logo are registered trademarks of eIQnetworks, Inc. All other trademarks, servicemarks, registered trademarks or registered servicemarks are the property of their respective owners.