Press Release - WatchGuard Chooses Entomo

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Press Release - WatchGuard Chooses Entomo

"On-Demand" Entomo SmartHub/SFR™ service automates point of sale (POS) data collection, discrepancy resolution, analysis and revenue reporting for leading network security vendor

BELLEVUE, WA, June 02, 2005 -- Entomo®, Inc. a leading provider of Web-based business process improvement, cost-reduction and risk mitigation solutions for distribution channel and supply chain management, today announced that WatchGuard® Technologies, Inc. (Nasdaq: WGRD), a leading provider of network security, has selected its SmartHub/SFRTM solution for sell-through distribution channel management and Sarbanes-Oxley compliance.

"Channel management and revenue recognition systems are mission critical in any company," noted Entomo President and CEO Sanjoy Chatterji. "We are very pleased that our solution has been selected by yet another industry leader like WatchGuard."

SmartHub/SFR, consists of both software to automate the "POS data collection through revenue reporting" cycle, as well as "on-demand" application hosting services that allow customers to access the software as a service, via the Web.

"As companies migrate channel sales from the 'sell-in' model of revenue recognition to 'sell-through', the data they use for forecasting, sales operations, and revenue recognition is increasingly found in their partners' business systems rather than their own," said Niranjan "Chips" Chipalkatti, Associate Professor of Accounting at Seattle University. "As a result, they must put in place new processes and systems to collect this data, resolve discrepancies, then use it for revenue recognition and financial reporting. These processes and systems must also satisfy the compliance requirements of Sarbanes-Oxley, SAB Topic 13, 101 and 104."

Unfortunately the lack of affordable tools to automate these processes has left a large number of companies implementing them manually, relying on email and faxes for data collection, spreadsheets for data normalization and analysis, and paper based documentation for controls. This creates unnecessary risk, as a recent survey by IDC found, with respondents identifying data errors, lack of an audit trail and lack of internal controls as major risk factors.

"Sarbanes-Oxley and other compliance initiatives require a substantial upfront investment of time and money," said Bradley Sparks, CFO of WatchGuard Technologies. "Automation can ensure that companies don't have to continue making investments at the initial levels year-after-year."

Entomo SmartHub/SFR provides the needed automation by delivering a single complete and affordable system for channel management and sell-through revenue recognition.

"We selected the Entomo offering because it provided a comprehensive solution that was quickly customized to our specific needs," said Tom Woody, Director of Business ERP at WatchGuard. "To rapidly deploy the solution, we chose the 'on-demand' hosted offering for the first phase of the project, which is now complete. In the future, we have the option of moving the application in-house."

Customers of Entomo's On-Demand service are able to leverage Entomo's robust application hosting infrastructure housed in SAS-70 Type II data centers, as well as experienced Entomo personnel on a shared basis. This keeps costs down and eliminates the challenges inherent in setting up, running, and supporting a 7x24 mission critical IT environment.

About WatchGuard Technologies, Inc.

WatchGuard provides network security. The company's Firebox X family of upgradeable appliances delivers the performance, functionality and security strength to meet the needs of organizations of any size. WatchGuard's Intelligent Layered Security protects against emerging threats and provides the platform to integrate additional services offered by the company. All WatchGuard products include a LiveSecurity Service subscription for vulnerability alerts, software updates, expert security instruction, as well as individualized and self-help customer care. WatchGuard is headquartered in Seattle, Washington, with offices throughout Europe and Asia. For more information, please visit www.watchguard.com.

About Entomo, Inc.

Entomo, Inc. is a software products and consulting services company offering solutions that enable revenue enhancement, cost reduction, Sarbanes-Oxley and ISO 9000 compliance, and risk mitigation for medium to large enterprises. Our solutions include offerings for Business System Connectivity, Data Aggregation, Data Cleansing and Normalization, Data Warehousing, Supply Chain and Distribution Channel Visibility, e-Procurement, Strategic Sourcing, Supplier Relationship Management (SRM), and Distribution Channel Management (DCM). These offerings complement our customers existing IT investments in connectivity, ERP and business systems and extend them for the Web- and EDI-based electronic transactions, online collaboration, exception management, and real-time reporting across multiple internal sites within an enterprise and among supply chain, distribution channel, and service provider partners. For more information, please call 425-372-0546 or visit www.entomo.com.

Entomo and SmartHub/SFR are either registered trademarks or trademarks of Entomo, Inc. WatchGuard, LiveSecurity and Firebox are either registered trademarks or trademarks of WatchGuard Technologies, Inc. in the United States and/or other countries. All other trademarks are the property of their respective owners.