nCircle Announces 8th Consecutive Year Of Revenue Growth And Continued Profitability

PRESS RELEASE

SAN FRANCISCO, CA — February 10, 2010— nCircle, the leader in automated security risk and compliance auditing solutions for physical and virtual IT environments, today announced 22% year over year revenue growth for the year ending December 31, 2009, marking the company's eighth consecutive year of revenue growth. This also marks the company's sixth consecutive quarter of profitability. nCircle grew in all regions during 2009, with substantial growth in the Federal government sector and in its Europe, Middle East and Africa (EMEA) region with growth exceeding 130% year over year.

In the Federal government nCircle solutions are being used to automate FISMA and FDCC compliance and nCircle signed notable new customers such as the Internal Revenue Service, Center for Medicare and Medicaid Services and the Department of the Interior. Growth in the EMEA region included customers such as Vodafone, First Gulf Bank, Abu Dhabi Judicial Department, the City of London and Deutsche Post DHL. "We are pleased with nCircle's global growth in 2009, especially given the challenging economic environment our customers faced," stated Abe Kleinfeld, CEO, nCircle. "Our existing customers continue to expand their investments in nCircle and new customers are selecting nCircle at an accelerating pace, endorsing our focus on delivering the best IT audit solution in the market."

During 2009, nCircle Suite360TM continued to expand as the world's most comprehensive suite for automated security risk and compliance auditing. Highlights include:

* Suite360 Intelligence Hub, nCircle's powerful IT governance, risk and compliance (ITGRC) analytics and reporting solution, includes additional dashboards and a self-service portal to meet the diverse needs of multiple audiences across the global enterprise. Enhanced asset grouping enables any user to gain valuable insights from the data nCircle collects across the entire IT infrastructure. * Configuration Compliance Manager (CCM), the world's leading agentless configuration auditing solution, added support for auditing for NERC compliance and virtualized environments, enabling enterprises to audit both hypervisors and virtual machines. * WebApp360 for web application scanning now features expanded coverage for OWASP Top Ten security flaws. * nCircle added coverage for over 7,000 new security and compliance conditions in 2009, a 34% increase, marking the largest year of coverage growth in nCircle's history. Customers can now scan for over 29,000 conditions across their global networks, extending nCircle's lead with the most comprehensive security and compliance auditing solution in the industry. * nCircle launched the HITRUST Security and Configuration Auditing Service, powered by nCircle, an innovative SaaS service designed to secure healthcare information and ensure compliance with numerous industry and government regulations.

About nCircle Suite360 nCircle provides the world's most comprehensive suite of solutions for agentless security and configuration auditing for physical and virtual IT environments. nCircle's solutions combine the broadest discovery of networked systems and their operating systems, applications, vulnerabilities and configurations with advanced analytics to help enterprises reduce security risk and achieve compliance. nCircle's solutions includes IP360 for vulnerability and risk management, WebApp360 for web application vulnerability auditing, Configuration Compliance Manager (CCM) for configuration auditing and file integrity monitoring, Certified PCI Scan Service for on-demand self-service PCI scanning, and Security Intelligence Hub for IT governance, risk and compliance (ITGRC) reporting and analytics.

About nCircle nCircle is the leading provider of automated security and compliance auditing solutions. More than 4,500 enterprises, government agencies and service providers around the world rely on nCircle's proactive solutions to manage and reduce security risk and achieve compliance on their networks. nCircle has won numerous awards for growth, innovation, customer satisfaction and technology leadership. nCircle is headquartered in San Francisco, CA, with regional offices throughout the United States and in London and Toronto. Additional information about nCircle is available at www.ncircle.com.