Evaluation Based on Completeness of Vision and Ability to Execute

SUNNYVALE, Calif., – December 18, 2012 – Proofpoint, Inc., (NASDAQ: PFPT), a leading security-as-a-service provider, today announced it has been positioned by Gartner, Inc. in the Leaders quadrant of the 2012 Magic Quadrant for Enterprise Information Archiving.¹ Proofpoint is one of just three vendors positioned as Leaders in the new report, which provides a detailed overview of the Enterprise Information Archiving (EIA) market and evaluates the vendors based on their completeness of vision and ability to execute.

To read a complimentary copy of Gartner's complete 2012 Magic Quadrant for Enterprise Information Archiving report, please visit:

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

"We believe Proofpoint’s positioning by Gartner in the leaders quadrant is a great confirmation of our ongoing success in delivering archiving solutions that meet the security, performance, and advanced functionality requirements of even the largest enterprises," said Gary Steele, CEO of Proofpoint. "We feel that Proofpoint’s strong position in the enterprise information archiving market has been fueled by our continued success in winning large enterprise customers and our ongoing commitment to delivering the innovative, cloud-based information governance solutions demanded by enterprise customers."

Writing in the 2012 Magic Quadrant for Enterprise Information Archiving, Gartner analysts Sheila Childs, Kenneth Chin, Debra Logan and Alan Dayley note that, “The EIA market is healthy and growing rapidly. EIA has emerged as a commonly used technology underpinning for higher-level use cases supporting information governance, e-discovery, historical preservation of data and application retirement."

Gartner analysts also note that adoption of cloud-based archiving solutions continues to grow rapidly, saying that, "Archiving as a service (aka cloud-based archiving solutions) has rapidly surpassed on-premises archiving as the preferred deployment model for most organizations." Gartner also observes that, "Aging on-premises archiving platforms are being replaced by more modern solutions, and migration from one archive to another, although difficult, is becoming commonplace."

The report highlights the growing importance of information governance as an important business driver in the deployment of archiving solutions. Gartner says, "Broader information governance concerns (regulatory compliance, business-focused retention and deletion of data, and managing aging data based on a clear understanding of its value) are beginning to surpass e-discovery as the primary driver for deploying EIA."

In-place management of legal holds is also highlighted as an important feature of today's enterprise information archiving solutions, noting the emergence of solutions such as Proofpoint Enterprise Governance. Gartner analysts write that, "Another trend that is emerging as an offshoot of an organization's desire to better manage its archiving and e-discovery processes is in-place legal hold. This functionality offers the ability to identify data wherever it resides and either apply legal holds to the data without moving it to an archive or to move it to a temporary archive at that point."

Of vendors positioned as Leaders, Gartner says, "Leaders have the highest combined measures of Ability to Execute and Completeness of Vision. They may have the most comprehensive and scalable products. They have a proven track record of financial performance and an established market presence. In terms of vision, they are perceived as thought leaders, with well-articulated plans for ease of use, product breadth and how to address scalability. For vendors to have long-term success, they must plan to address the expanded market requirements for EIA, including support for multiple content types, support for the cloud, solid relevant e-discovery functionality and a seamless user experience."

Proofpoint's Cloud-based Solutions for Enterprise Information Archiving

Proofpoint's cloud-based archiving solution, Proofpoint Enterprise Archive™, helps organizations address challenges including discovery readiness, regulatory compliance, legal holds and information governance without the headaches of managing an on-premises archive. With an innovative, next-generation architecture, it can be up and running in days with low, upfront capital investment, and predictable lifetime costs. Proofpoint Enterprise Archive can be utilized for search "anytime-anywhere" with sustainably fast, reliable performance uniquely backed by a Search Performance service level agreement (SLA) while Proofpoint's patented DoubleBlind™ Key Architecture provides high standards of data security and privacy.

Learn more about the many features and benefits of Proofpoint Enterprise Archive by visiting

http://www.proofpoint.com/archive.

Proofpoint Enterprise Governance is an enterprise information governance solution that gives organizations the ability to monitor and control the flow of information across all major data stores and communication channels, including end-user laptops and desktops, enterprise email systems, file sharing systems, and collaboration solutions (such as Microsoft SharePoint, and IBM Lotus Domino), powered by patented Digital Thread™ technology.

Proofpoint offers a broad set of solutions—including Proofpoint Enterprise Protection, Proofpoint Enterprise Privacy, Proofpoint Enterprise Archive and Proofpoint Enterprise Governance—that spans threat protection, compliance, archiving and governance, and secure communication. These solutions enable organizations to:

• Keep malicious content out of their environments
• Prevent the theft or inadvertent loss of sensitive information
• Collect, securely retain, govern, search and produce sensitive data for compliance and litigation support and
• Securely communicate and collaborate on sensitive data with customers, partners and suppliers.

¹Gartner, Inc., "Magic Quadrant for Enterprise Information Archiving," by Sheila Childs, Kenneth Chin, Debra Logan, Alan Dayley, 13 December 2012

About the Magic Quadrant
Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Proofpoint, Inc.
Proofpoint Inc. (NASDAQ:PFPT) is a leading security-as-a-service provider that focuses on cloud-based solutions for threat protection, compliance, archiving & governance and secure communications. Organizations around the world depend on Proofpoint's expertise, patented technologies and on-demand delivery system to protect against phishing, malware and spam, safeguard privacy, encrypt sensitive information, and archive and govern messages and critical enterprise information. More information is available at www.proofpoint.com.

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Proofpoint, Proofpoint Enterprise Protection, Proofpoint Enterprise Privacy, Proofpoint Encryption, Proofpoint Enterprise Archive, Proofpoint Enterprise Governance and Digital Thread are trademarks or registered trademarks of Proofpoint, Inc. in the U.S. and other countries. All other trademarks contained herein are the property of their respective owners.