Secure Elements Receives $5 Million from Blue-Chip Investors - Enterprise Security Software Firm Will Accelerate Sales and Development Efforts in the Automated Vulnerability Remediation Management Sector

Herndon, VA - Secure Elements Inc., an early-stage enterprise security software vendor, announced today that it has secured $5 million in Series A financing from industry leading investors DCM-Doll Capital Management and Carlyle Venture Partners (part of The Carlyle Group). Dixon Doll and Eric Gonzales from DCM and Bob Grady and Mark Frantz of Carlyle Venture Partners have joined Secure Elements' Board of Directors as a result of this financing.

Secure Elements is developing an automated vulnerability remediation (AVR) and patch management software platform for managing the complex processes associated with identifying, prioritizing, and remediating security vulnerabilities across enterprise infrastructures. The company was founded by Ned Miller, CEO, and Dan Bezilla, CTO, in January of this year. Mr. Miller and Mr. Bezilla previously were key executives at Recourse Technologies, a DCM-backed security software company which was acquired by Symantec for $135 million in August of 2002.

"Secure Elements has a unique approach to the immense enterprise security vulnerability problem and this level of support from two prestigious venture capital firms validates our strategic direction," said Mr. Miller. "DCM and Carlyle Venture Partners have an excellent track record of guiding companies through the evolution from start-up to market leadership."

According to Computer Economics, an independent research organization, the damage from Internet attacks could exceed $2 billion in August alone, which saw the out-break of four serious viruses: MiMail, Blaster (Lovesan), Sobig.F, and Nachi (Welchia). "We expect these outbreaks to accelerate what was already looking like a steep rise in both total security incidents and economic damage this year," says Miller. "The damage from malicious code attacks, as estimated by Computer Economics, will be at least $12-$13 billion in 2003."

Dan Bezilla, Secure Elements CTO and former chief scientist with the National Security Agency/ARDA program, said "The malicious code being released today is more costly and dangerous than ever before. It inflicts more damage and propagates across enterprises in a matter of minutes, not days or months. An automated remediation management solution is becoming a 'must have' for commercial and government entities."

Ronnie Colville, Gartner Group's Director of Research for configuration management and co-author of several reports on the topic of patch management, recently noted in Thompson Financial publication, Private Equity Week, that the sector is a fast growing market: "It's one of those big problem areas that attracts lots of interest and start ups."

According to Dixon Doll, Managing General Partner for DCM-Doll Capital Management, "Secure Elements has the team and technology to be a leading software provider for a new class of on-demand security application which automates the process of investigating, assessing, and deploying security patches and updates to mission-critical servers, network devices, and business enabling applications. We're thrilled to be backing the same team that was instrumental to the success of Recourse Technologies."

Bob Grady, the Managing Director of Carlyle Venture Partners added "The Federal government spent over $2 billion last year in identifying, addressing, and deploying solutions for network vulnerabilities. We think Secure Elements and its seasoned management team will quickly develop significant traction in that marketplace, as well as the financial services sector."

About Secure Elements

Founded in 2003, Secure Elements is a leader in developing automated vulnerability remediation and patch management software solutions for managing the complex processes associated with identifying, prioritizing, and remediating security vulnerabilities across enterprise infrastructures. Secure Elements' offering will significantly minimize the impact of security incidents on business performance.

With headquarters in Herndon, Virginia, Secure Elements' executive team is comprised of former security industry and intelligence community executives. The company has received financial backing from DCM-Doll Capital Management and Carlyle Venture Partners.

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