WatchGuard Completes RapidStream Acquisition

April 5, 2002 -- (WEB HOST INDUSTRY REVIEW) -- WatchGuard Technologies Inc. (watchguard.com), a leading provider of Internet security solutions, announced this week that it has completed its acquisition of RapidStream Inc. (rapidstream.com), a privately held provider of firewall and VPN appliances.

Watchguard says it acquired RapidStream for approximately $16.5 million in cash and approximately 4.92 million shares of common stock , approximately 1.2 million shares of which will be placed in escrow for one year to satisfy any indemnification claims by WatchGuard.

"We are extremely excited to complete the acquisition of RapidStream," says Jim Cady, president and CEO of WatchGuard. "The acquisition of RapidStream strengthens our position in the SME market and provides us with the opportunity to address a broader range of customers and offer an even more competitive security solution."

In addition, says WatchGuard, all options to purchase shares of RapidStream common stock outstanding at the time of the acquisition were assumed by WatchGuard, and will be treated as options to purchase approximately 300,000 shares of WatchGuard common stock at a weighted average price of approximately $3.87.

WatchGuard says it will release more information about the deal, first announced in February, during a discussion in WatchGuard’s regularly scheduled conference call for the first quarter of 2002.