Reflex Security Secures $12 Million Round from Spencer Trask Ventures

Spencer Trask Ventures Teams with RFT Investment Company to Support Reflex Security’s Growth and Opportunity in $2.4 Billion Market for Intrusion Prevention Systems

Spencer Trask Ventures, a New York based venture capital firm, recently announced that Reflex Security, a pioneer in network intrusion prevention systems, has closed a $12 million Series B Preferred private placement, bringing the company’s total invested capital to date to $19 million. The Series B offering was led by Spencer Trask Ventures and also included investments by RFT Investment Company, LLC, a private investment fund based in Atlanta, and a multi-billion dollar, New York City based, multi-strategy hedge fund.

“As access to private information and valuable digital assets becomes ubiquitous, ensuring a combination of uninterrupted network connectivity and protection from external and internal security threats is imperative to today’s enterprises,” said Jim Watson, CEO of Reflex Security. “With this capital infusion, Reflex Security will be able to develop and introduce best-of-breed network security solutions, and grow our sales and marketing efforts domestically and internationally.”

Reflex Security has validated its market leadership through outstanding customer satisfaction ratings at over 1,000 worldwide installations in the finance, healthcare, education, manufacturing and government markets. The Company was also awarded SC Magazine’s 2006 “Best Buy” Award for intrusion prevention systems earning the only five-star rating among its competitors, recognizing Reflex Security as the “top performer” with excellent protection and ease of use in a side-by-side group test.

“Reflex Security is aggressively gaining market share in the market for intrusion prevention solutions due to its superior price, performance and technological leadership,” said Sam Vail of Spencer Trask Ventures. “The team at Reflex Security continues to innovate and stay one step ahead of its competitors with its exciting new vision of IPS Everywhere™, delivering intrusion detection and prevention at the network level, as well as on host systems, virtualized servers, and client level computing.”

“We are impressed by Reflex Security’s performance as one of our new portfolio companies and are excited with their execution to date,” said Don Carson, General Manager of RFT Investment Company.

According to a July 2006 Gartner Dataquest forecast on intrusion prevention systems worldwide, the stand-alone intrusion prevention systems market together with the embedded IPS market should grow to $2.4 billion worldwide by 2010. As a result, Reflex Security is well positioned to capture a significant share of this market opportunity by delivering its IPS Everywhere™ best-of-breed IT security solutions to those security-conscious enterprises that demand the best price performance for all elements of an IT infrastructure.