Press Release

Code Green Networks Adds Macnica Networks As Japanese Distribution Partner

Company Expands Its Global Reach to Meet Market Demand for Enterprise Content Security Technology

SUNNYVALE, Calif. – January 31, 2006 – Code Green Networks, a provider of enterprise content security solutions, today announced that it has signed a distribution agreement with Macnica Networks Corp., a leading distributor and integrator of network and application software, appliances and related services, in Japan. By partnering with Macnica Networks, Code Green Networks will quickly build its base of Japanese customers and ensure that they receive outstanding service and support.

Managing security threats associated with enterprise content is becoming a top priority for corporate IT organizations. The amount of dynamic content continues to grow, and the number of communication channels, such as email, mobile and portable storage devices, is increasing. At the same time, companies must ensure corporate accountability and compliance with privacy and data security regulations. These forces are driving the need for enterprise content security solutions; IDC estimates that the market will soon be $2 billion. By implementing a solution that provides content security across entire networks, at both network egress points and individual clients, companies can prevent the unauthorized disclosure of confidential corporate information and ensure accountability and compliance.

“Code Green Networks offers the most comprehensive enterprise content security solution on the market today, and we are pleased to join the company in bringing its outstanding solutions to the Japanese market,” said Kiyoshi Nakashima, president and chief executive officer (CEO), Macnica Networks. “Working with Code Green Networks, we will ensure that Japanese customers receive the product, expertise and services to best protect their valuable, confidential enterprise content.”

“Japanese companies – like their counterparts in the U.S. and Europe – must meet stringent government regulations concerning information protection and security, and we see tremendous opportunity in Japan,” said Sreekanth Ravi, cofounder, chairman, president and CEO of Code Green Networks. “Macnica Networks has an excellent reputation; together Macnica Networks and Code Green Networks can best address these information security needs and capitalize on this fast-growing market.”

About Macnica Networks Corp.

Macnica Networks has extensive expertise in distributing a full line of network software, appliances, telecommunications solutions and related services to the Japanese market. In addition, Macnica Networks provides a high level of comprehensive technical support and educational programs to assist customers with their applications. For more information, visit http://www.macnica.net/english.

About Code Green Networks

Code Green Networks delivers data loss prevention solutions that protect private employee and customer information and safeguard intellectual property across all electronic communications channels. The company’s easy-to-deploy, easy-to-manage content inspection appliances rapidly detect and prevent potential data leaks, helping organizations automate compliance and mitigate risks from internal breaches that can result in loss of revenue, financial penalties and irreparable damage to a corporation's image, brand and customer loyalty.

All products mentioned in the release are trademarks or registered trademarks of Code Green Networks. All other trademarks, trade names and product names are used solely for the purpose of identification and are the property of their respective owners.