Arxceo, a Network Security Startup, Raises $1.2M in Early Funding Round

Industry’s first firewall companion product for adding anti-reconnaissance and anomaly-based intrusion prevention to be introduced at RSA Conference

HUNTSVILLE, Ala., February 8, 2005 – Arxceo Corporation, a provider of anomaly-based intrusion prevention and anti-reconnaissance technology, closed its second successful round of funding today, accepting almost ten percent more funds than initially sought before turning away additional investments. The Company plans to use the proceeds to release its first product, expand marketing and grow channel distribution. Arxceo will announce its first product at the RSA Conference, the security industry’s most prestigious event, in San Francisco on February 15th. Arxceo’s patent-pending Tag-UR-IT™ and Plug and Protect™ technologies have been under development since 2001 and funded with employee, family and Angel investments.

Arxceo’s first product, the Ally IP1000, is the perfect companion for existing firewalls and other security points within an organization’s network, such as gateways or high-traffic intersections. The Ally implements Arxceo’s Tag-UR-IT architecture to enforce proper protocol behavior and authenticate IP addresses while preventing exploits. Simply stated, Tag-UR-IT tags packets as they enter or exit an Ally-protected network segment. These tags, or fingerprints, contain special encoded information the Ally IP1000 uses to prevent network reconnaissance, spoofed traffic, session hi-jacking, DNS cache poisoning, data leaks, protocol abuse and zero-day attacks. The Ally is an in-line security appliance that provides omni-directional analysis and protection for network traffic. Arxceo’s unique approach delivers outstanding performance without expensive proprietary hardware – giving administrators a cost effective way to bulkhead critical internal network segments.

Arxceo’s products are designed to complement a customer’s existing security products from vendors such as Cisco, Juniper Networks, Check Point, Nokia and others. Most security devices available today operate by matching incoming network traffic against a database of known attacks – often referred to as “signatures”. Unfortunately, this means that brand new attacks or even new variations on old attacks can sneak right past signature-based detection devices. By deploying Arxceo’s Ally next to an existing firewall, or intersection within the internal network, these attacks can now be stopped.

“We’re pleased with the response to our Offering and the progress we’ve made to date. We believe investors’ interest reflect the requirement for our technology in today’s networks ” stated Don Davidson, President and CEO, “More importantly, industry analysts are recognizing that anomaly or behavior-based attack detection is a critical addition to the layers of defense strategy.“

About Arxceo Corporation

Arxceo Corporation develops network intrusion prevention systems that assist corporate firewalls by enhancing both their security and performance along with providing omni-directional protection for critical internal network security. Arxceo’s Tag-UR-IT technology fortifies the network protocol stacks of devices it protects while adding anti-reconnaissance, anti-address spoofing and anti-DoS protection. Arxceo’s products are designed with Plug and Protect capability for rapid deployment in less than 15 minutes with little-to-no configuration efforts, no signatures, or updates to apply and a zero-day learning mode. For more information, visit www.arxceo.com.

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Arxceo, Tag-UR-IT, Plug and Protect, PnPRO and the Arxceo Logo are trademarks of Arxceo Corporation. Other brands and product names are trademarks of their respective owners.