"The New Sendmail" Announces Record Revenue for Fiscal 2007

New Branding Campaign Marks Sendmail's Growth and Transition in Messaging Security Market

EMERYVILLE, CA., February 27, 2008 — Sendmail, Inc., a leading provider of message-processing security appliances, today announced that worldwide revenues for fiscal 2007 increased 50 percent versus the prior year. This revenue surge is largely attributed to a growing demand for the company's flagship product, Sentrion®, which boosted unit sales more than 160 percent over the prior year. The increased demand from the company's Global 1000 customer base reflects the growing pain-points associated with complex messaging infrastructures, regulatory compliance requirements, surging levels of spam and virus infected email, and concerns over outbound data leakage.

"The 'old' Sendmail was known primarily for open source software which provided complex routing and delivery of email," said Donald J. Massaro, Sendmail President and CEO. "Ten years ago, we incorporated to provide commercial software solutions for email routing and delivery while adding inbound threat protection, and we've acquired a great roster of Global 1000 customers. Last year, when shifting to a packaged appliance model and adding sophisticated capabilities for outbound threat protection, we attracted new customers who recognize the benefits of a single, integrated bi-directional message processor. Our rapid growth in 2007 tells me that 'The New Sendmail' is on the right track to gaining significant share in this growing market."

The Sentrion Message Processors integrate Sendmail's time-tested Mail Transfer Agent (MTA) with the market's most powerful and flexible policy engine, all neatly integrated in a 1u- or 2u-height rack-mounted appliance. On top of this powerful core set of features and functionality, customers can add multiple layers of applications to manage inbound (e.g. spam and viruses) and outbound (e.g. compliance, encryption and data leakage of confidential or sensitive information) threat protection.

In addition, the Sentrion DS, which began shipping in November, directly addresses one of the Internet's biggest threats: email fraud through phishing. In a January 2008 report, the Authentication and Online Trust Alliance (AOTA) found that as much as 80 percent of email from leading brands, banks and ISPs is spoofed. The Sentrion DS uses a new internet standard called DKIM, or Domain Keys Identified Mail, co-authored by Sendmail founder Eric Allman, to digitally sign outbound email so that the sender's identity can be authenticated before it is received by the end-user. The Internet's major players, including Yahoo, Google, PayPal and AOL, have all embraced this standard to help fight email fraud.

In discussing the latest growth figures, Sendmail Executive Vice President and COO, Glen D. Vondrick noted: "No matter how you measure it—total revenue, international revenue, appliance sales, OEM sales, new customer growth—2007 was a record year for Sendmail. Email volumes continue to rise and our customers are realizing the return-on-investment they can achieve by modernizing their outdated messaging infrastructure to handle the complex routing and delivery of email with new Sentrion Message Processors. Many of our legacy open source customers are converting to the Sentrion MP as they realize that the payback for mission-critical business communications is not in filtering applications. No solution has ever been more reliable and trusted in ensuring delivery of the mail than Sendmail."

"As we have grown, we have started to attract a lot of attention in the market, and that has helped us recruit great new talent," Vondrick continued. "Over the past two months, we have hired several key executives who have previously worked for one or more of our competitors. This added experience, combined with our aggressive product roadmap, should help us continue to grow at a rapid rate in 2008."

Ian Emery joined Sendmail in January of this year as Vice President of Sales for EMEA. With over 30 years experience in major hardware and software companies in the U.K., Emery was most recently general manager of the enterprise messaging security business in Europe for Tumbleweed Communications.

Randy Johnson joined Sendmail in February as Vice President of Sales for the Americas. Johnson has more than 25 years of management and sales leadership experience at companies including Hewlett-Packard and Iron Mountain. Most recently, Johnson was Americas VP of Sales at security provider nCipher.

Steve Comstock also joined Sendmail this month as VP of Customer Experience and will manage the company's SQA process, as well as all aspects of the customer experience, including installation, usability, reliability and scalability. Comstock is a 10-year veteran of Oracle Corporation, where he held a variety of roles, most recently as Director of Management Service for Oracle's major infrastructure products, including messaging.

Over the past six months Sendmail has also added a number of talented product development and customer service veterans from companies including Proofpoint, Symantec, Tumbleweed and Vericept, among others.

Reflecting the company's growth, and the transition from a software company to an appliance model, the company has embarked upon a branding campaign to promote greater visibility and awareness in the market. "We found that Sendmail had brand recognition in the market, but there were many incorrect or outdated perceptions about the company and its products," said Kort van Bronkhorst, Vice President, Corporate Marketing of Sendmail. "In order to initiate a dialogue with our partners, customers and prospects about the changes we have been making, we are using 'The New Sendmail' as our branding platform. This allows us to leverage our historic strengths in routing, delivery, and reliability, and add compelling new messages about our Message Processor platform and the robust applications we can add. We are planning to roll out our integrated messaging campaign beginning in March."

About Sendmail, Inc.
Sendmail is the leading supplier of bi-directional message processing security appliances. With over 25 years of leadership delivering innovative messaging technology, Sendmail ensures the protection and trust of employee and customer communications. Sendmail technology, driven by the industry's most powerful and flexible policy engine, provides protection where 80 percent of security and compliance violations occur - within inbound and outbound messaging. Large enterprises in 33 countries, and the majority of the Fortune 1000, trust Sendmail to shield its users from unwanted messages, defend the messaging infrastructure, stop data and privacy leaks and effectively manage messaging to maintain brand and shareholder value and support regulatory compliance. Sendmail is headquartered in Emeryville, Calif. with offices and distributors throughout Europe, Asia, and North America.

For more information call 1-87-SENDMAIL, or email info@sendmail.com.