SOMERSET, N.J. – Nov. 18, 2003 - Netilla® Networks, Inc., a leading provider of SSL VPN and secure application access management solutions, today announced that it has achieved eight consecutive quarters of growth as of Sept. 30, the end of its 2003 fiscal year. To date Netilla has exceeded 600 revenue shipments of its Netilla Security Platform to more than 450 customers, reflecting the growing worldwide demand for the company’s SSL VPN and policy enforcement point solution.

Netilla took the #2 market share position for 2002 among SSL VPN vendors in terms of both revenues and unit shipments, according to market research firm In-Stat/MDR (“Tunneling Through the Flames: An Analysis of the Firewall and VPN Market,” April 2003). “Our research demonstrated that Netilla has emerged as one of the leading players in this rapidly growing market space,” said analyst Jaclynn Anderson, author of the report.

“Even in an increasingly crowded field of SSL VPN vendors, Netilla continues to post impressive gains because of our unique ability to provision application access to all trusted users within an enterprise -- not just the nomadic fringe of remote users,” said Reggie Best, president and CEO of Netilla. “We believe Netilla holds the #1 market share among SSL VPN vendors in the channel. 100 percent of our sales are through the channel, while many of our competitors go direct or use a channel-plus-direct strategy. We never compete with our VARs, who can thus capitalize on the exciting opportunities in the field.”

Netilla’s momentum has been fueled by the recent announcement of dynaTRUST, its proprietary policy enforcement operating system for secure application access management (SAAM). dynaTRUST lets enterprises provision dynamic trust-based access to applications and network resources on the basis of four key variables: a user’s identity, entitlements, environment and client integrity. In Netilla’s strategic vision, SSL VPNs that are used today primarily for remote access are evolving into enterprise-wide policy enforcement points that will mediate access to applications and data for all trusted users within an organization, regardless of their location.

While maintaining its strong presence in the healthcare sector, Netilla has expanded into other key vertical markets, including manufacturing, government and financial services. The company’s customers include Virtua Health, the Netherlands’ Ministry of Transport, Herr Foods, Saint Barnabas Health Care Center, the Canadian Institutes of Health Research, Commonwealth Health Corp., The United Way of Delaware, Deborah Heart and Lung Center, Reed Exhibitions, Children’s Specialized Hospital, The Philadelphia Stock Exchange and Johnson Matthey.

Analysts project continued robust growth for the SSL (secure sockets layer) VPN (virtual private network) market because of the technology’s ability to provide access to corporate resources to authorized users via standard Web browsers – a clear benefit over IPSec-based VPNs that require the installation of software clients. Additionally, because SSL VPNs operate at the application layer of the network, they offer fine-grained access to individual applications on a per-user basis, instead of the undifferentiated full network access that IPSec VPNs provide. As a result, Infonetics Research has predicted that SSL VPNs will become a $607 million market opportunity by 2006 – for a combined annual growth rate of 105 percent.

Netilla has steadily expanded beyond its base in the U.S. to pursue strategic international opportunities. The company has more than 10 international distributors across Europe and Asia, each of whom markets Netilla products to its respective network of value-added resellers (VARs). For the Asia/Pacific market, Netilla has modified its platform so that it can be easily customized to support local languages and character sets.