FOR IMMEDIATE RELEASE

SECURITY RISK INCREASED BY RAPID GROWTH IN
INTERNET USAGE AT WORK AND HOME

Next Generation SnapGear™ VPN Routers 
Cut the Cost of Secure Firewall and Private Networks in Half

SAN MATEO, Calif. - July 30, 2001 - A recently published joint study from
the Computer Security Institute (www.gocsi.com) and the Federal Bureau
of Investigation (www.fbi.gov) shows that eighty-five percent of respondents
(primarily large corporations and government agencies) detected computer
security breaches within a recent twelve-month period.

"Internet usage is experiencing explosive growth at home, at work and
on the road," said Bob Waldie, CEO SnapGear. "This dramatic increase in
remote access has increased security risks and security breaches. SnapGear's
low-cost secure VPN devices allow home users to connect with increased
security."

SnapGear, Inc. was formed in direct reaction to the increased market need
for affordable private network devices that reduce the risk for computer
intrusions. SnapGear incorporates the latest security technologies into
devices specifically designed for usage in homes, small businesses and
branch offices. These devices create secure private network areas for
Internet access and data exchange at a price point below $300, half the
cost of comparable competitive offerings.

Respondent highlights from the joint CSI/FBI study include:
·	Sixty-four percent acknowledged financial losses due to computer breaches.
·	Thirty-five percent (186 respondents) were willing and/or able to quantify
their financial losses at a reported $377,828,700.
·	As in previous years, the most serious financial losses occurred through
theft of proprietary information (34 respondents reported $151,230,100)
and financial fraud (21 respondents reported $92,935,500).
·	For the fourth year in a row, more respondents (70 percent) cited their
Internet connection as a frequent point of attack than cited their internal
systems as a frequent point of attack (31 percent). Indeed, the rise in
those citing their Internet connections as a frequent point of attack
rose from 59 percent in 2000 to 70 percent in 2001.
·	Forty percent of respondents detected system penetration from the outside
(only 25 percent reported system penetration in 2000).
·	Twenty-three percent suffered unauthorized access or misuse within the
last twelve months. Twenty-seven percent said that they didn't know if
there had been unauthorized access or misuse.
·	Fifty-eight percent of those acknowledging attacks reported ten or more
incidents.
·	Ninety percent of those attacked reported vandalism (only 64 percent
in 2000).
·	Seventy-eight percent reported denial of service (only 60 percent in
2000).
·	Thirteen percent reported theft of transaction information (only eight
percent in 2000).
·	Eight percent reported financial fraud (only three percent in 2000).
In the report, Bruce J. Gebhardt, in charge of the FBI's Northern California
office, said, "The results of this year's survey again demonstrate the
seriousness and complexity of computer crime. The dynamic vulnerabilities
associated with conducting business on-line remain a law enforcement
challenge.
 In an effort to address this challenge the FBI and private sector have
joined forces in an information sharing initiative named 'InfraGard.'
For more information about InfraGard, please contact your local FBI office
or visit the InfraGard website at www.infragard.net."
Additional third-party references:
·	Multimedia Research Group, Inc (www.mrgco.com) predicted on July 16,
2001, that there will be more than 15 million broadband Internet subscribers
in 2001, and more than 30 million by 2004. An additional 24 million have
broadband access through office LANs.
·	Kinetic Strategies, Inc (www.kineticstrategies.com) reported in June
2001 that there are 9.3 million North American residential broadband users.
·	Arbitron, Inc (www.arbitron.com) claims that nearly 31 % of American
Internet users have broadband access at home, work or school.
·	Strategy Analytics (www.strategyanalytics.com) reports that the current
household penetration of broadband (cable & DSL) is 14% in North America
and is predicted to hit 53% by 2005.
·	Crossport (www.crossport.com) claims that the average new DSL user
experience
s 3 attacks in first 48 hours.
·	HoneyNet Project (http://www.counterpane.com/crypto-gram-0106.html#1)
shows that a user connecting a home or office to the Internet is vulnerable
to attack and will be scanned dozens of times a day. A Windows computer
is five times as likely to be broken into than other operating systems.
Systems connected to the Internet are subjected to NetBIOS scans an average
of 17 times a day. Fastest time for a server being hacked is 15 minutes
after plugging it into the network. Life expectancy of a default installation
of Red Hat 6.2 server is less than 72 hours.

Waldie continued, "The security problem is not as prevalent at the
headquarters
 of a company, but at the remote office sites or where employees frequently
use remote access. Our analysis of available research causes us to believe
that most businesses experience daily probing and that a business has
a 50%-60% chance of being hacked if they don't take precautions. "  

SnapGear product features decrease the likelihood of hacker intrusion
and increase the reliability that data being exchanged ends up where it
was meant to go. SnapGear is experiencing rapid growth in revenues tied
to individual and company expenditures for increased security. 

According to Infonetics Research
(http://www.lightreading.com/document.asp?doc_
id=3402), VPN spending will continue to grow despite a general IT spending
slowdown. Their "Network Technology Adoption Forecasts, US/Canada 2001
Report" forecasts that the number of dedicated VPN hardware units shipped
in 2001 will increase 153% over last year, and revenues will double to
nearly $1.5 billion. According to the study, 56 percent of large organizations
(companies with more than 1,000 employees), already had site-to-site VPNs
in 2000 and this percentage would increase to 84 percent in 2005. Small
companies with 20 to 100 employees are expected to grow from 13 percent
in 2000 to 50 percent by 2005. 

The SnapGear product line is based on the Lineo® SecureEdge™ edge routing
software development platform.

Availability
Pricing for SnapGear products begins at $249. SnapGear appliances are
now shipping in volume through resellers. For more information on the
entire SnapGear product line, please visit
http://www.snapgear.com/products.html

About SnapGear
SnapGear is the leading provider of fully-featured cost-effective Internet
security solutions for the branch office or small office, and the remote
worker markets. Founded in 2001, SnapGear, Inc. designs, develops and
manufactures a complete line of Internet security solutions that provide
access security and transaction security for small, medium and large
enterprise
s. SnapGear is a wholly-owned subsidiary of Lineo®, Inc. For more information,
visit http://www.snapgear.com or call 650-572-2333 in the U.S.

# # #
SnapGear is a trademark of Lineo, Inc. All other products, services, companies
and publications are trademarks or registered trademarks of their respective
owners.
Press only contacts:
Bob Waldie
SnapGear
Tel: 801-645-0162
bob.waldie@snapgear.com
Rhett Glauser
Lineo
Tel: 801-852-8066
rhett@lineo.com