also strategically aligns with the company's focus on federal government agencies. Watchfire has a rapidly growing business with governments. COAST has likewise had success serving federal agencies, particularly the U.S. Department of Defense. This acquisition will significantly increase Watchfire's participation in this market segment

"This agreement brings immediate value to our customers," said Paul Saunders, president and CEO, COAST Software. "We're pleased to have found an experienced partner dedicated to ensuring our customers will benefit from a broader solution, delivering a complete risk management platform that sets the standard for managing today's critical, complex and growing online threats."

Key COAST employees have accepted offers of employment from Watchfire, and will play an important role as Watchfire migrates existing COAST customers to WebXM. Watchfire has created a dedicated team to address the technical requirements of COAST users and partners during the migration. This team includes professional service consultants, developers and customer support experts who have experience deploying and supporting both the COAST solution and the WebXM platform and have created a migration plan aimed at ensuring continuity and customer satisfaction.

"The online risk management market is growing rapidly as web channels become more vital and strategic. Consolidation also continues to be a software industry trend as customers are finding it more cost effective and convenient to work with fewer vendors as they deploy software that delivers measurable value," said Peter McKay, Watchfire president and CEO. "Watchfire's acquisition of COAST gives Watchfire an increased market presence and supplemental technology. COAST customers will benefit from having access to a proven, comprehensive platform to manage their web infrastructure for security, privacy, regulatory compliance, risk reduction and quality enhancement."

About Watchfire
Watchfire provides software and services to manage online risk. More than 250 enterprise organizations and government agencies, including AXA Financial, SunTrust, Veterans Affairs and Dell, rely on Watchfire to monitor, manage, improve and secure all aspects of the online business including security, privacy, quality, accessibility, corporate standards and regulatory compliance. Watchfire's alliance and technology partners include IBM Global Services, PricewaterhouseCoopers, TRUSTe, Microsoft, Interwoven, EMC Documentum and Mercury Interactive. Watchfire is headquartered in Waltham, MA. For more information, please visit www.watchfire.com.



Revolution Partners is one of the nation's largest investment banks focused exclusively on Mergers & Acquisitions and Private Capital Fundraising Advisory Services for technology companies. All of our clients benefit from senior-level attention from partners with deep sector expertise.

Revolution Partners was founded in 2001 by former senior technology bankers from major Wall Street investment banks. With offices in Boston, San Francisco and Los Angeles, Revolution applies partner-level experience to the successful execution of advisory and financing transactions for emerging technology companies in industry sectors including software, Internet business services, telecommunications, wireless, clean tech, digital media, storage and semiconductors. For more information, visit www.revolutionpartners.com.