WatchGuard Gets OK to Export 56-Bit Virtual Private Network

Seattle-based WatchGuard Technologies Inc., a provider
of Internet security appliances, has received approval to export the Virtual
Private Network (VPN) component of the WatchGuard Security System with 56-bit
encryption outside the U.S. and Canada.

General requirements prohibit the export of security products with greater
than 40-bit encryption to customers in countries outside the U.S. and Canada
without prior approval from the from the United States Bureau of Export
Administration (BXA), excluding banks and financial institutions.

“With this license our international customers no longer have to wait for
general approval by the BXA to begin receiving the benefits of stronger
encryption,” said Christopher Slatt, CEO of WatchGuard. “We will continue
working diligently with the BXA to receive approval for higher bit encryption
and look forward to making additional progress regarding export licenses in
the near term.”

The WatchGuard Security System is a subscription-based security solution with
integrated firewall, VPN and automated updating capabilities. The system is
specifically designed for small to medium-sized businesses that lack the
technical resources to install a complex host-based firewall and continually
monitor for threats. The plug-in design of the WatchGuard Firebox appliance
delivers protection at the network perimeter, and WatchGuard LiveSecurity
continues to keep the system current by systematically transmitting the latest
security updates to network managers for push-button distribution to the
Firebox.

The WatchGuard Security System is priced at $4,995. The 56-bit version will be
available for export worldwide on February 1, 1999, the company said, except
to India, Pakistan, Iran, Iraq, Syria, Libya, Sudan, Cuba and North Korea.