November 18, 2002
Sunnyvale, CA

ArcSight, a leading provider of enterprise security management software solutions, today  announced that In-Q-Tel is a strategic investor. In-Q-Tel, a private venture group funded by  the Central Intelligence Agency (CIA), has selected ArcSight based on its  ability to consolidate security infrastructure and achieve more efficiency and  increased visibility from security operations. As an investor, In-Q-Tel is participating in a strategic funding round  recently closed by the company.

Of  particular interest is the recently introduced ArcSight 2.0. The product features 360 Intelligence in its correlation function by combining vulnerability scanning data and asset value with real time alarms and alerts to develop a precise and accurate  incident threat index. In addition, the  scalability and geographically distributed deployment support that ArcSight's  Distributed Security Architecture provides is well suited to the demanding  global requirements of the most sophisticated government agencies and corporations.

"In-Q-Tel  is dedicated to expanding its portfolio of innovative technology companies that can meet the security challenges facing government organizations and enterprises today," said Gilman Louie, CEO of In-Q-Tel. "ArcSight stands out in  this important market because of its unique ability to combine real time  analysis and display with easily accessible forensic tools and reporting in a  single solution. This makes it an attractive choice both as an ESM provider and  a portfolio company. The product's correlation feature sets it above other ESM  systems on the market with its ability to integrate vulnerability scanning and  asset value data."

ArcSight 2.0 allows organizations and enterprises to better manage their security  infrastructure through event aggregation, real time correlation, incident response workflow and comprehensive reporting. ArcSight solves the challenge of  data overload, false positives, slow event response and incomplete reporting.

"Clearly,  security is of particular concern for government agencies," said Robert  Shaw, Chairman and CEO of ArcSight. "Given the degree of accuracy and precision demanded by these types  of organizations, we are proud to list In-Q-Tel as a strategic partner. In-Q-Tel's validation of ArcSight follows in  the footsteps of major corporations such as Union Bank of California and  government agencies such as Sandia National Laboratories."

About ArcSight
ArcSight  is a leading provider of enterprise software solutions that enable large  organizations to better manage their security function by integrating and  optimizing the management of diverse security devices deployed across a  network. By delivering complete aggregation, correlation, investigation,  resolution and reporting - all within a single solution - ArcSight provides a  coordinated infrastructure that maximizes security results while decreasing  overall costs. ArcSight's 360¬∞ Intelligence utilizes asset-based correlation  technology that allows enterprises to combine vulnerability assessment data and  asset value with real time event data, improving their ability to detect true  threats and attacks and react to them in real time. ArcSight's customers  include major financial services organizations, government agencies,  manufacturers and managed service suppliers. More information can be found at http://www.arcsight.com.

ArcSight  and the ArcSight logo are registered trademarks of ArcSight. All other  companies, products and services mentioned herein are the property of their  respective owners and should be treated as such.