SOURCE: Citadel Security Software

July 13, 2005 08:00 ET

Citadel Security Software Awarded $900,000 in Contracts by Leading Financial Services Institutions to Provide Enterprise Vulnerability Management Solutions

Company Continues Expansion Into Commercial Market Through Adoption by Financial Services Sector of Hercules® Vulnerability Management Solution

DALLAS, TX -- (MARKET WIRE) -- July 13, 2005 -- Citadel Security Software Inc. (NASDAQ: CDSS), a leader in enterprise vulnerability management and policy enforcement solutions, today announced that it received commercial orders totaling $900,000 for products and services by two of the top financial services providers in the U.S. In fulfilling these orders, Citadel provided security architecture services to one of the world's largest financial services firms and delivered its award-winning Hercules® software and support services to a leading servicer of U.S. pension plans and mutual funds.

Due to the increased security measures attributed to legislation such as Gramm-Leach-Bliley, Sarbanes-Oxley and other regulatory requirements, financial institutions must proactively identify and protect against the enormous number of security vulnerabilities that plague IT networks. Manually resolving the vulnerabilities found on each device is a time-consuming and resource-intensive task, making it an ineffective approach to fully protect confidential customer records and financial data. Citadel's Hercules will enable information technology managers at these financial institutions to enforce security policies and automate the resolution of security vulnerabilities to meet auditors' requirements.

"We are seeing increasing demand for our security solutions from leading financial institutions that face the challenge of maintaining extremely high security measures and meeting stringent regulations," said Steve Solomon, CEO of Citadel. "With Hercules in place, these financial services providers have strengthened their compliance with government mandates, and reduced risk and liability while protecting the integrity of their customers' confidential information."

About Citadel Hercules

With its award-winning Hercules Security Compliance and Vulnerability Remediation software solutions, Citadel helps protect an organization's network against all five classes of vulnerabilities -- software defects or patches, unsecured accounts, unnecessary services, mis-configurations and backdoors -- across a multi-platform, multi-device environment. By automating vulnerability remediation and policy enforcement processes, Citadel's customers, including the US Department of Defense, Bank of Alameda, Satellite Asset Management, Citizens Business Bank, Banknorth, MCI and AutoZone have a more effective approach to protecting sensitive data and enforcing security policies across their network.

About Citadel

Citadel Security Software (NASDAQ: CDSS) delivers security solutions that enable organizations to manage risk, reduce threats and enforce compliance with security policies and regulations. Citadel's proven architecture provides a business process to manage the increasing volume, frequency and complexity of cyber security attacks. Citadel combines the world's largest active library of remediations spanning all classes of vulnerabilities with a proven delivery methodology to dramatically streamline vulnerability management and security compliance and provide ROI from the first use. Citadel solutions are used across the Department of Defense, at the Veterans Administration, and within other government and commercial organizations. For more information on Citadel, visit, or call 888-8CITADEL.

Safe Harbor/Forward-looking Statements:

This press release may contain forward-looking statements that are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or future financial performance and involve known and unknown risks and uncertainties that may cause actual results or performance to be materially different from those indicated by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "forecast," "may," "will," "could," "should," "anticipate," "expect," "plan," "believe," "potential" or other similar words indicating future events or contingencies. Some of the things that could cause actual results to differ from expectations are: the economic and geopolitical environment; changes in the information technology spending trends; the uncertainty of funding of government and corporate information technology security projects; the variability of the product sales cycle, including longer sales cycles for government and large commercial contracts; the uncertainty that the company's prospective deals will result in final contracts; the potential changes in the buying decision makers during a customer purchasing cycle; the complexities in scope and timing for finalization of contracts; the fluctuations in product delivery schedules; a lack of Citadel operating history; uncertainty of product development and acceptance; uncertainty of ability to compete effectively in a new market; the uncertainty of profitability and cash flow of Citadel; intellectual property rights and dependence on key personnel; economic conditions; the continued impact of terrorist attacks, global instability and potential U.S. military involvement; the competitive environment and other trends in the company's industry; the effects of inflation; changes in laws and regulations; changes in the company's business plans, including shifts to new pricing models that may cause delays in licenses; interest rates and the availability of financing; liability, legal and other claims asserted against the company; labor disputes; the company's ability to attract and retain qualified personnel; and adjustments to the amounts presented in the unaudited financial tables as a result of the completion of the audit process. For a discussion of these and other risk factors, see the company's Annual Report on Form 10-KSB for the year ended December 31, 2004, and the company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005. All of the forward-looking statements are qualified in their entirety by reference to the risk factors discussed therein. These risk factors may not be exhaustive. The company operates in a continually changing business environment, and new risk factors emerge from time to time. Management cannot predict such new risk factors, nor can it assess the impact, if any, of such new risk factors on the company's business or events described in any forward-looking statements. The company disclaims any obligation to publicly update or revise any forward-looking statements after the date of this report to conform them to actual results.

Editors Note: Citadel is a trademark and Hercules® is a registered trademark of Citadel Security Software.

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