Press Release

FOSTER CITY, CALIF. - November 8, 2006 - FaceTime Communications, the leading provider of solutions for securing and managing greynets such as IM, P2P, Skype and Web conferencing, and market research firm NewDiligence, today reported results of their annual survey: Employee Use of Greynets: 2nd Annual Survey of Trends, Attitudes and Impact. The study confirms that employees are continuing to download and use unsanctioned applications to gain new business productivity advantages, while IT managers confirmed greynets continue to be dangerous if left unmanaged and can introduce significant risks to the business. To obtain a copy of the Employee Use of Greynets: 2nd Annual Survey of Trends, Attitudes and Impact, please visit www.facetime.com/greynetresearch

In October 2006, data was collected in a survey of more than 1,100 employees (end users) and IT managers to determine the impact that greynet applications have on enterprises, small and medium sized businesses. Greynets - real-time communications applications that are often introduced by end users and use highly evasive techniques to traverse the network - pose myriad network and information security risks because they provide vectors for malware, intellectual property loss, identity theft and compliance risks.

While some greynets such as Web conferencing, Web browsing, IM and Skype™ have legitimate business uses, IT needs visibility and control to ensure their safe and productive use. Still others such as P2P file sharing, video streaming, and anonymizers can pose further consequences to the organization. All these new, real-time collaborative applications can be evasive on the network, often circumventing traditional security infrastructure that was designed for email and standard Web traffic.

Results of the survey show that more users are adopting greynet applications while, at the same time, little progress has been made toward combating greynet-related attacks. Eighty one percent of IT managers reported greynet-related attacks within the last six months, about the same rate as one year ago. The most common attacks continue to be from spyware and adware (75 percent), viruses and worms (57 percent), other malware (22 percent) and rootkits and keyloggers (22 percent). Further, the required repair and remediation as a result of these attacks is costly. A typical organization is estimated to spend nearly $130,000 per year on average to repair damage from greynet-related attacks, while the largest companies are estimated to spend upwards of $350,000 per year repairing damage from greynet-related attacks due to higher incident rates.

Additional key findings include:

• Four in ten employees believe they have the right to install greynet applications on their work computer, and more than half the end users are at work locations where policies governing IM and P2P usage are disregarded (53 percent)
• The number of work locations where eight or more greynet applications are in use has doubled over the past 12 months, growing from 20 percent of locations one year ago to 41 percent today
• Seventy percent of end users have sent personal IMs from work, and 1 in 4 employees admitted to sending information about company plans, finances or password/login credentials via IM
• More than one-fourth of employees say they use IM in order to have "private, unmonitored communications," and if end users knew their IM communications were monitored, almost half (45 percent) would pay more attention to company guidelines while one fifth would pick their words more carefully (21 percent)
• One in five IT managers report the unauthorized distribution of personal information (22 percent) or intellectual property (19 percent) via greynets
• Three-fourths of IT managers report productivity reductions from non-work related activities (73 percent) including downloading of adult materials (50 percent), copyright violations (39 percent) and violations of corporate communications policies (33 percent)
• Only 11 percent of IT managers believe their network systems would have intercepted the type of sexually explicit IMs allegedly sent by former Congressman Mark Foley
• On a positive note, two-thirds of IT managers recognize that "IM and P2P have benefits" but must nonetheless be managed by IT

"End users continue to take business communications into their own hands, downloading and using real-time collaborative applications often without a complete understanding of the risks," said Frank Cabri, vice president of marketing for FaceTime Communications. "The challenge for IT leaders is finding the right balance between enabling employee use of these applications while minimizing the risks to their organization. This challenge is compounded by the fact that much of the perimeter network security previously deployed was not designed to secure the greynet applications that employees find desirable."

Employees consider it a right to download unsanctioned applications
Consistent with last year's results, end users surveyed believe it is within their right to download the applications they deem necessary to do their jobs. Half of the users surveyed had downloaded some type of greynet application in the past six months, and the top three greynet applications preferred by employees include streaming media, Web mail, and public instant messaging. In addition, about 40 percent of employees admit to downloading applications even when explicitly forbidden or unsanctioned by their IT department.

Current security infrastructure is ineffective
IT Manager survey respondents were asked to assess their own company networks in terms of their capacity to intercept the kinds of IMs allegedly sent by former Congressman Mark Foley. Only 11 percent of IT managers indicated that their networks would have been "very effective" at intercepting such communications. In fact, 31 percent of IT managers rate their networks as "not at all effective" at preventing these kind of messages from being delivered.

This data indicates that the current security infrastructure, designed to guard networks against threats coming through email or the traditional Web channel, is not equipped to guard against today's greynet-related threats. Although nearly all IT managers have deployed network-based security measures, dedicated hardware or software that directly addresses greynet-related threats tends to be less frequently installed. For example, 96 percent of IT managers report having firewalls and 82 percent reported having gateway anti-virus installed while only 35 percent are currently using IM and greynet management tools.

About FaceTime Communications
FaceTime enables the safe and productive use of greynets like instant messaging, VoIP, web conferencing and P2P file sharing. FaceTime Security Labs delivers the industry's first IMPact Index, which assesses "point-in-time" risks posed by viruses, worms and other malware propagating through greynet applications. FaceTime's award-winning solutions are used by more than 800 customers, among them nine of the ten largest U.S. banks. FaceTime supports or has strategic partnerships with all leading public and private IM network providers, including AOL, Google, Microsoft, Yahoo!, IBM, Bloomberg, and Jabber.

FaceTime is headquartered in Foster City, California. For more information visit http://www.facetime.com or call 888-349-FACE.

PR Contact:

Joshua Barnes
A&R Edelman
650-762-2865
joshua.barnes@ar-edelman.com