Sunnyvale, Calif. – November 5, 2008 – Proofpoint, Inc., the leading provider of unified email security, archiving and data loss prevention solutions, today announced that Q3 2008 was the company’s 21st consecutive record-breaking quarter as quarterly bookings, revenue, number of transactions and customer acquisition reached their highest levels to date.

“Even in today’s challenging economic environment, demand for email security and data loss prevention solutions remains high as organizations struggle to reduce the risks associated with email,” said Gary Steele, CEO of Proofpoint. “The drive to lower costs and increase efficiency is creating opportunities for Proofpoint, because our solutions deliver maximum effectiveness while lowering total cost of ownership. Adoption of SaaS solutions such as Proofpoint on Demand and Proofpoint Email Archiving continues to be extremely rapid, in part because on-demand solutions greatly reduce up-front investments, minimize ongoing administration costs and accelerate time-to-value for email security.”

Customer adoption of the company’s SaaS (Software-as-a-Service) solutions, Proofpoint on Demand and Proofpoint Email Archiving, continued strong in Q3 2008, exceeding expectations. The Proofpoint on Demand customer base grew by more than 80% during the quarter while the volume of data being managed through Proofpoint Email Archiving grew by more than 25%.

During Q3, Proofpoint added a record number of new customers, many of which converted to Proofpoint from competing email security solutions by vendors including Cisco (IronPort), Symantec, Google (Postini), Trend Micro and McAfee (Secure Computing/CipherTrust).

Industry analysts continued to recognize the strength of Proofpoint’s product offering and company growth during the quarter. Proofpoint was positioned by Gartner, Inc. in the leaders quadrant of the “Magic Quadrant for E-mail Security Boundaries” 2008 report. To read a complimentary copy of this email security report, please visit:

http://www.proofpoint.com/email-security-magic-quadrant

Industry analysts IDC also recognized Proofpoint as one of the fastest growing vendors in the email security space.

“Proofpoint is the fastest growing messaging security vendor with revenue over $10M from 2006 to 2007,” said Jon Crotty, Research Analyst, security products and services for IDC. “Proofpoint has continued to innovate by providing its solutions in hosted service, hybrid and virtual appliance versions which IDC believes will be advantageous as enterprises show an increasing interest in those deployment models.”

Proofpoint’s continued explosive growth was also highlighted this week as the company was ranked number 2 on Deloitte’s 2008 Technology Fast 50 list of the fastest growing software and IT companies in Silicon Valley.

In the US and Canada, Proofpoint strengthened its partnerships with key North American security VARs including FishNet Security, Forsythe Technology and Accuvant through joint sales efforts and co-marketing campaigns that drove increased sales pipelines. Ongoing technical training and certification programs helped to increase the depth of partner knowledge about Proofpoint’s solutions. In addition to focusing its anti-spam, anti-virus, DLP and email archiving sales efforts on Proofpoint, Forsythe Technology has also selected Proofpoint technology to power Forsythe’s own MSP (Managed Service Provider) email security solution.

International growth continued to be strong during Q3 2008 as the company expanded its international channels. New international channel partners included DNS (UK), Exclusive (Benelux, UK), Lan 1 (Australia), Mambo (Spain, Portugal), S4N (Brazil), and SecureSource (Malaysia).

Proofpoint is the email security, archiving, encryption and DLP solution of choice for a rapidly growing number of enterprises, universities and government organizations worldwide, helping them stop spam, protect against email viruses and prevent leaks of confidential information via email and other network protocols. To learn firsthand how Proofpoint can protect your messaging infrastructure from both inbound and outbound messaging risks, request a free trial of Proofpoint’s hosted service or virtual appliance solutions at the following URLs:

• To request a free, 30-day trial of Proofpoint on Demand, please visit: http://www.proofpoint.com/trypod
• To download a free, 45-day trial version of the Proofpoint Messaging Security Gateway—Virtual Edition, please visit: http://www.proofpoint.com/trial

About Proofpoint, Inc.

Proofpoint secures and improves enterprise email infrastructure with solutions for email security, archiving, encryption and data loss prevention. Proofpoint solutions defend against spam and viruses, prevent leaks of confidential and private information, encrypt sensitive emails and archive messages for retention, e-discovery and easier mailbox management. Proofpoint solutions can be deployed on-premises (appliance), on-demand (SaaS) or in a hybrid architecture for maximum flexibility and scalability. For more information, please visit http://www.proofpoint.com

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Proofpoint, Proofpoint on Demand and Proofpoint Email Archiving are trademarks or registered trademarks of Proofpoint, Inc. All other trademarks contained herein are the property of their respective owners.