Network security sales top $1.1 billion in 2Q06

Infonetics: worldwide network security appliance and software sales are up 2% to $1.1 billion between the first and second quarter of 2006, and is forecast to grow 30% between 2005 and

2009, when it will reach $5.1 billion.

It was a quiet quarter for the network security market once again, with most of the major players showing no or single-digit growth or small declines,. Cisco had a down quarter overall, but posted gains in the secure router segment, which impacted their results in the price-banded appliance categories and in the intrusion detection and prevention categories. The market continues to commoditize as new vendors bring creative, affordable solutions to the table, driving costs down and competition up.

2Q06 Highlights

• Cisco continues to lead in worldwide network security appliance and software sales, with 36% of total revenue, a position they have more or less maintained since 2002

• For the first time, Juniper passes Check Point and is now in second place for worldwide revenue at 10%

• Check Point is now third for worldwide revenue at 9%

• Integrated security appliances and software make up 85% of worldwide network security revenue, IDS/IPS 15%

Network Security Appliances and Software Publ 200600905