Watchfire Licenses Patented Intellectual Property to Acunetix

Watchfire and Acunetix Also Enter into Cross-License Agreement

14 September 2005 - Watchfire, a provider of software and services to manage online risk, and Acunetix, provider of the Acunetix Web Vulnerability Scanner, today announced they have signed an agreement to license Watchfire’s patented intellectual property to Acunetix. Specifically, Acunetix has agreed to pay Watchfire an undisclosed amount in exchange for certain rights to Watchfire’s United States Patent number US 6,584,569 (the “569 patent”). The agreement also provides for the cross licensing of select web application security assessment-related patent claims. Additional details of the agreement were not disclosed.

Watchfire’s online risk management solutions monitor and report online security, privacy, quality, and compliance risks. Specific to this agreement, Watchfire’s United States Patent number US 6,584,569, provides an automated method of scanning and testing web applications for security vulnerabilities used in AppScan, Watchfire’s web application security tool.

Acunetix™ is a new company specializing in web security technology. Its product, Acunetix Web Vulnerability Scanner, is the result of several years of development and utilizes unique technology to allow companies to check the security of their website.

“We are pleased to have reached an agreement that not only benefits both companies, but, more importantly, is in the interests of the Web security market,” commented Peter McKay, president and CEO, Watchfire.

“We are very pleased with the agreement reached with Watchfire,” said Nick Galea, CEO of Acunetix Ltd. “We can now focus our efforts on creating technology that will help companies reduce the attacks at web application level. These types of attacks are without a doubt the most dangerous and overlooked security threat today. As an industry we can now create more awareness for the problem and work towards making web applications safer

About Watchfire
Watchfire provides software and services to manage online risk. More than 250 enterprise organizations and government agencies, including AXA Financial, SunTrust, Boots PLC, Veterans Affairs and Dell rely on Watchfire to monitor, manage, improve and secure all aspects of the online business including web application security, privacy, quality, accessibility, corporate standards and regulatory compliance. Watchfire’s alliance and technology partners include IBM Global Services, PricewaterhouseCoopers, TRUSTe, Microsoft, Interwoven, EMC Documentum and Mercury. Watchfire is headquartered in Waltham, MA. For more information, please visit www.watchfire.com.

About Acunetix Ltd
Acunetix was founded to combat the alarming rise in web attacks. Its flagship product, Acunetix Web Vulnerability Scanner, is the result of several years of development by a team of highly experienced security developers. Acunetix is a privately held company with its offices in Malta and the UK.