Watchfire Certified as PCI Security Standards Council Approved Scanning Vendor

Watchfire First and Only Web Application Security Software Vendor Certified to Scan, Identify and Report Vulnerabilities and Validate Proper Security Controls for Online Credit Card Transactions

WALTHAM, MA - March 12, 2007 - Watchfire, the market leading provider of web application security software and services, announced today that its AppScan® product has successfully completed the PCI Security Standards Council Approved Scanning Vendors testing process and is validated as compliant with the Payment Card Industry Data Security Standard (PCI DSS). Watchfire is the only web application security testing software vendor to earn PCI certification and can perform PCI scans to help validate the security of its customers' websites according to the Payment Card Industry Data Security Standard.

The PCI Data Security Standard, endorsed by American Express, Discover Financial, JCB, MasterCard Worldwide and Visa International, requires merchants and service providers that store, process or transmit customer payment card data to adopt information security controls and processes to ensure data integrity. Participating payment brands require PCI DSS compliance reports by a certified third-party assessor for merchants and service providers that process credit card transactions to achieve compliance. More information on the council and the standard can be found at www.pcisecuritystandards.org.

As an Approved Scanning Vendor, Watchfire is certified to help merchants manage data security risks and evaluate the security of their systems that store payment account data and assist them in achieving compliance with the PCI DSS. Watchfire is the first web application security software vendor to earn certification.

Watchfire has achieved approved status by subjecting its market leading web vulnerability scanning software AppScan to rigorous testing on the council's infrastructure. In an era of increasingly sophisticated attacks on systems, the PCI DSS certification reassures merchants that they are being assessed accurately and fairly against the most current payment industry requirements.

"Watchfire is proud to be the first web application scanning software vendor to receive certification as an Approved Scanning Vendor. It signifies our continued leadership in the field where application security and compliance intersect," said Peter McKay, president and CEO of Watchfire. "Web application security is more important than ever for companies who want to achieve compliance with the PCI DSS mandate. Regular testing with a web application vulnerability scanner helps merchants to develop and maintain secure systems and applications, which goes a long way toward preventing data security breaches that can erode customer confidence."

About Watchfire
Watchfire is the leading provider of web application security software and the only company to offer an end-to-end solution including intelligent fix recommendations to evaluate, understand and resolve issues. More than 800 enterprises and government agencies, including AXA Financial, SunTrust, HSBC, Vodafone, Veterans Affairs and Dell rely on Watchfire to identify, report and help remediate security vulnerabilities. Watchfire has been the recipient of several industry honors including: winning an unprecedented three out of five 2007 SC Magazine Excellence Awards (including Best Security Company); the HP/IAPP Privacy Innovation Award; Computerworld's Innovative Technology Award; finalist for the pending Dr. Dobb's 2007 Jolt Product Excellence Awards; and "Recommended" rating by Computer Reseller News. For two years in a row, Watchfire has been named by IDC as the worldwide market share leader in web application vulnerability assessment software. Watchfire's partners include IBM Global Services, Fortify, PricewaterhouseCoopers, Sapient, Microsoft, Interwoven, EMC Documentum and Mercury. Watchfire is headquartered in Waltham, MA. For more information, please visit www.watchfire.com.