CyberDefender Expands Retail Marketing Program

PRESS RELEASE

LOS ANGELES, July 7 /PRNewswire-FirstCall/ -- CyberDefender Corporation (OTC Bulletin Board: CYDE), an award-winning provider of PC security, Antispyware/Antivirus Software, PC Optimization, PC Support, and Identity Theft Prevention solutions, announced today a major expansion of its retailer marketing program from a previously announced 40,000 stores to more than an additional 145,000 stores globally.

The program, developed under the agreement announced in May with Allianex, a leading provider of brand management services, makes available "My Tech Card" prepaid cards for a full range of CyberDefender products and services at highly visible point of purchase merchandising displays at stores ranging from small "mom and pop" shops to the nation's largest "big box" stores. Each store in the program is partnered with InComm, the industry leader in stored-value gift and pre-paid products with more than $8 billion in sales transactions.

"InComm is excited to be working with CyberDefender in the launch of their new 'My Tech Card,'" said Dave Etling, Vice President of Product Development at InComm. "Partnerships like this allow InComm to continue to grow its industry leading suite of top tier products while leveraging its key retail relationships." He continued, "Strong consumer demand for CyberDefender products and services backed by InComm's best practices with regard to launching products at retail, should permit us to meet and exceed expectations."

"This first of its kind distribution arrangement with InComm and CyberDefender brings the right access to prepaid and gift card consumers the technology related user assistance they need and deserve," added Ken Rotman, President of Allianex.

Aiming For One Million+ Paying Customer Base

Mr. Gary Guseinov, CEO of CyberDefender, stated, "We fully anticipate that through our new 'bricks and mortar' marketing strategy, we will achieve exposure to many millions of potential new customers. Our ambitious initial roll out schedule including many of InComm's retail locations will have 'My Tech Card' available just in time for the back to school shopping season. Over the next twelve to eighteen months we believe we can achieve significant sales gains utilizing this exciting new channel which complements our recent advertising initiatives on television and radio as well as on the Internet, which historically has been our major marketing channel."

He added, "Our ramped up marketing effort is based on the fact that a very high percentage of CyberDefender customers appreciate the peace of mind our products can provide and become repeat customers. Placing the new 'My Tech Card' prepaid cards in a prominent spot in each new store in this program can be expected to attract many more to our paid customer base which we anticipate will exceed one million by mid next year."

About CyberDefender Corporation

CyberDefender Corporation believes that its Internet security technology offers the earliest possible detection and most aggressive defense against Internet security attacks. CyberDefender believes that it is the only Internet security software company to combat spyware, viruses, and identity theft using a patent pending secure peer-to-peer collaborative threat protection network (the earlyNETWORK), enabling protection that is unparalleled in speed and flexibility. Products employing the earlyNETWORK include CyberDefender's MyIdentityDefender Toolbar, CyberDefenderFREE V2.0, and CyberDefender Early Detection Center V2.0. All of these products are fully compatible with Microsoft's Vista Operating system and available at http://www.cyberdefender.com/.

About InComm

InComm is the industry leading marketer, distributor and technology innovator of stored-value gift and prepaid products using its state-of-the-art point-of-sale transaction technology and payment solutions to revolutionize retail product sales and customer experiences. With nearly $8 billion in retail sales transactions processed in 2007, InComm is the nation's largest provider of gift cards, prepaid wireless products, reloadable debit cards, digital music downloads, content, games, software and bill payment solutions. InComm partners with consumer brand leaders around the world to provide more than 145,000 retail locations the products and services their customers demand. Since 1992, InComm's patented technologies have made the buying process easier for consumers while streamlining the selling process for product and retail partners. InComm is headquartered in Atlanta with offices in Japan, Canada, the United Kingdom, Puerto Rico, Colorado, Texas, Florida, New Jersey, Oregon, Arkansas, Alabama, Minnesota and Mississippi. For more information, visit www.incomm.com or call 1.800.352.3084.

About Allianex

For additional information about Allianex, please contact Ken Rotman, President, at 805-455-0835 or [email protected].

Forward Looking Statements

Statements in this press release that are not statements of historical or current fact, such as CyberDefender's expectation of future revenue growth and profitability, constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause CyberDefender's actual results to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Factors that could cause CyberDefender's results to be materially different from the forward-looking statements include whether CyberDefender will be able to find financing when and as it needs it and whether CyberDefender's revenues will eventually exceed its expenses. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in CyberDefender's reports and registration statements filed with the Securities and Exchange Commission, which are available for review athttp://www.sec.gov/.

CONTACTS:

Kevin Harris Chief Financial Officer CyberDefender [email protected] Tel: 213-689-8631 X127 Fax: 213-689-8640

Ken Donenfeld DGI Investor Relations [email protected] Tel: 212-425-5700 Fax: 646-381-9727