Watchfire Corporation

Watchfire Corporation

June 14, 2005 09:00 ET

Watchfire Acquires COAST Software Inc.-Acquisition Enhances Enterprise Web Privacy Compliance Solution

WALTHAM, MASSACHUSETTS and OTTAWA, ONTARIO--(CCNMatthews - June 14, 2005) - Watchfire, a provider of software and services to manage the risks of doing business on the web, today announced it has acquired substantially all of the assets and intellectual property of COAST, an Ottawa-based provider of online quality and privacy compliance software. Watchfire has acquired COAST's entire product line, consisting of COAST Compliance Central, WebCentral and its desktop tool, COAST WebMaster. Financial terms of the agreement were not disclosed.

Watchfire's market-leading enterprise online risk management platform, Watchfire® WebXM™, monitors and manages critical online issues including website security, privacy, quality, accessibility and regulatory compliance. With this acquisition, Watchfire plans to integrate complementary COAST privacy and compliance technology into WebXM™, further extending Watchfire's capability in the increasingly topical and sensitive area of assessing online privacy compliance.

This acquisition brings important global enterprise customers to Watchfire, and also strategically aligns with the company's focus on federal government agencies. Watchfire has a rapidly growing business with governments. COAST has likewise had success serving federal agencies, particularly the U.S. Department of Defense. This acquisition will significantly increase Watchfire's participation in this market segment.

"This agreement brings immediate value to our customers," said Paul Saunders, president and CEO, COAST Software. "We're pleased to have found an experienced partner dedicated to ensuring our customers will benefit from a broader solution, delivering a complete risk management platform that sets the standard for managing today's critical, complex and growing online threats."

Key COAST employees have accepted offers of employment from Watchfire, and will play an important role as Watchfire migrates existing COAST customers to WebXM. Watchfire has created a dedicated team to address the technical requirements of COAST users and partners during the migration. This team includes professional service consultants, developers and customer support experts who have experience deploying and supporting both the COAST solution and the WebXM platform and have created a migration plan aimed at ensuring continuity and customer satisfaction.

"The online risk management market is growing rapidly as web channels become more vital and strategic. Consolidation also continues to be a software industry trend as customers are finding it more cost effective and convenient to work with fewer vendors as they deploy software that delivers measurable value," said Peter McKay, Watchfire president and CEO. "Watchfire's acquisition of COAST gives Watchfire an increased market presence and supplemental technology. COAST customers will benefit from having access to a proven, comprehensive platform to manage their web infrastructure for security, privacy, regulatory compliance, risk reduction and quality enhancement."

For more information on the COAST acquisition, please visit: http://www.watchfire.com/resources/coast-faqs.aspx

About Watchfire

Watchfire provides software and services to manage online risk. More than 250 enterprise organizations and government agencies, including AXA Financial, SunTrust, Veterans Affairs and Dell, rely on Watchfire to monitor, manage, improve and secure all aspects of the online business including security, privacy, quality, accessibility, corporate standards and regulatory compliance. Watchfire's alliance and technology partners include IBM Global Services, PricewaterhouseCoopers, TRUSTe, Microsoft, Interwoven, EMC Documentum and Mercury Interactive. Watchfire is headquartered in Waltham, MA. For more information, please visit www.Watchfire.com.

Watchfire, WebCPO, WebXM, WebQA, WebXACT, Bobby, Sanctum, AppScan, the Sanctum Logo, the Bobby Logo and the Flame Logo are trademarks or registered trademarks of Watchfire Corporation. All other products, company names, and logos are trademarks or registered trademarks of their respective owners.

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