SOURCE: Liquid Machines

February 05, 2007 08:00 ET

Liquid Machines Announces Record Revenues and Significant Demand for Its Enterprise Rights Management Solutions

New Customers, Products, Partners and Channels Contribute to 147% Year-Over-Year Sales Growth and Extend Overall Market Leadership

WALTHAM, MA -- (MARKET WIRE) -- February 5, 2007 --Liquid Machines®, Inc., the leader in Enterprise Rights Management (ERM) solutions, today announced that it achieved record growth in the recently closed fiscal year. As a result of the industry's increased demand for ERM solutions to secure intellectual property and improve compliance controls, Liquid Machines experienced a record year-over-year sales growth rate of 147%, with more than 50% of existing customers purchasing additional products and services in 2006; a number of sales to Fortune 100 companies; and strong momentum in its recently created Public Sector and OEM businesses.

"2006 was a watershed year for Liquid Machines, as we executed well across all areas of our business," said Michael Ruffolo, president and CEO, Liquid Machines. "We added new customers, partners and lines of business -- all which contributed to our impressive year-over-year growth. The growing demand for enterprise rights management solutions and our traction in this market allow us to enter 2007 with a strong revenue backlog and pipeline."

Liquid Machines' enterprise rights management solutions allow organizations to protect critical and sensitive content by applying protection at the information level -- enabling access and usage controls to travel with the protected confidential data as it moves from user to user, machine to machine, or between applications, inside or outside of the organization. By tying access and enforcement directly to the data, companies are protected against confidential data loss, theft or modification -- and ensure that their intellectual property is not accessed by unauthorized users.

During 2006, Liquid Machines:

--  Acquired significant new customers and expanded existing customers' use
    of its products and services, including sales to Chico's FAS, CIBC, Dow
    Chemical, Fairfax County Government, Fairfield Greenwich, KKR
    Financial, Lombard Canada, Microsoft, Motorola, Quellos Group,
    SolidWorks, Symantec, U.S. House of Representatives, U.S. Marine
    Corps, Wells Fargo and Wood Group Pressure Control.
--  Delivered Liquid Machines Document Control™ 6.0, its flagship
    product built with  premier support for Microsoft Windows Rights
    Management Services (RMS), advanced enterprise management, unique
    offline capabilities for mobile users and the most comprehensive
    application and file format support offering in the market.
--  Introduced two new Liquid Machines Gateways: Fileshare and Google Mini
    Gateway.  Combined with its existing Gateways for BlackBerry and
    Documentum -- for mobile devices and content management, respectively
    -- Liquid Machines easily integrates with its customers' critical
    enterprise infrastructure components.
--  Received industry recognition, along with Goldman Sachs & Co.
    (NYSE: GS), from Bank Technology News for innovation and
    differentiation that is "changing the rules" in the banking industry.
    Liquid Machines ranked number two out of a list of 25 companies and
    vendors that included IBM, Washington Mutual, EMC and JPMorgan Chase.
    Goldman Sachs' deployment of Liquid Machines' enterprise rights
    management was described as a "significant enabler" of their overall
    information protection strategy.
--  Launched its Public Sector division.  In January 2006, Liquid Machines
    brought former Akamai executive Keith E. Johnson on board as its vice
    president of public sector.  In March, Johnson announced the formation
    of Liquid Machines' Public Sector Advisory Board, consisting of leading
    information technology and security experts in the Public Sector,
    including Richard A. Clarke, former Special Advisor to the President
    for Cyber Security for the Bush Administration and Roger W. Cressey,
    former Chief of Staff to the President's Critical Infrastructure
    Protection Board at the White House.  The Public Sector team includes
    sales, support and services professionals that work with customers in
    the Department of Defense, Intelligence, Federal Agencies, Civilian
    Agencies and State and Local Government.
--  Closed its Series C financing led by Goldman, Sachs & Co., which
    totalled $7.5 million and included existing investors Atlas Venture,
    Masthead Ventures and Draper Fisher Jurvetson.
Mike Ruffolo, president and CEO, will review the company's recent performance and current business strategy at the 3rd Annual America's Growth Capital Information Security Conference in San Francisco on Monday, February 5. The conference, hosted by America's Growth Capital and Soleil Securities, has been designed to collectively illustrate the significance of information security to the IT landscape. Investors wishing to attend the conference can request an invitation by filling out the online form at: http://www.dev-americasgc.com/dev/invite020507.htm.

About Liquid Machines

Liquid Machines is the leading provider of Enterprise Rights Management (ERM) solutions that persistently protect critical business content and audit usage while enabling collaboration. Liquid Machines' Document Control and Email Control solutions allow companies in the financial services, public sector, manufacturing and healthcare industries to share information securely, within any application, wherever it goes, throughout its lifecycle. Liquid Machines ERM solutions help enterprises satisfy today's ever-increasing information security regulations, such as Sarbanes-Oxley, NASD 2711, HIPAA and others, as well as implement and practice internal mandates for intellectual property security, product version control, or clinical data protection.

Based in Waltham, Massachusetts, Liquid Machines is privately held and is backed by Atlas Venture, Masthead Venture Partners, Goldman Sachs & Co. and Draper Fisher Jurvetson. For more information on the company and our vision for The Freedom of Security™, visit us at www.liquidmachines.com.

© 2007 Liquid Machines, Inc. All rights reserved. Liquid Machines Product or company names mentioned herein may be the trademarks of their respective owners. The information contained in this document represents the current view of Liquid Machines, Inc. on the issues discussed as of the date of publication.

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