Company and Product Presentation

2

Company Background Mission

Deliver easy to use and cost effective solutions for protecting email servers Founded December 2002

Research and development since 2001 Barracuda Spam Firewall Launch October 2003 Barracuda Spyware Firewall Launch April 2005 Headquarters in Mountain View, California

Offices in Europe (UK), China (Shanghai), Canada, Australia, India, Japan, Pakistan, United Arab Emirates (Dubai), and USA

130+ employees worldwide Experienced management & development team

Privately Funded Profitable

Market Leader 21,000 customers worldwide

3

Market Outlook

Anti-spam market Similar in size and scope to firewall and anti-virus markets By 2007, 80% of all security solutions will be delivered via

a dedicated appliance.**Source: IDC Research

Firewall market Reached $3.8 billion in 2003 Expected to reach $5.5 billion in 2005*

Anti-virus market Approximately $4 billion in 2004 Expected to reach $4.4 billion by 2007* 0

1

2

3

4

5

6

Market Size (2007)

Billions $

Anti Spam Market Size

Anti Spam

Firewall

Anti Virus

4

Barracuda Networks Strategy Similar in progression to firewall market

Check PointSoftware

$50K

Nokia/CiscoSoftware/Hardware

$50K

NetScreenHardware

$5K

Barracuda NetworksHardware

$5K

IronPort/CipherTrustHardware/Software

$50K

BrightmailSoftware

$100K

Firewall Market

Spam Firewall Market

5

Barracuda Spam Firewall Comprehensive email protection

Blocks spam and virus – inbound and outbound Integrated hardware and software solution

Ease of use Plug-and-play No changes needed to email servers

Enterprise Features Reliable and Robust

Aggressively Priced No per user licensing fees

Market leading anti-spam appliance

**Launched October 2003**

6

Barracuda Spam Firewall Family Spam Firewall 200

1,000 users 1 million messages/day

Spam Firewall 300 2,000 users 4 million messages/day

Spam Firewall 400 10,000 users 10 million messages/day

Spam Firewall 600 25,000 users 25 million messages/day

Spam Firewall 800 30,000 users 30 million messages/day

Clustering support for redundancy and higher

capacity

7

Barracuda Spam Firewall Eliminates Spam and Virus Protects your email server and your company

8

Key Features Administration

Reporting Email Processing History Whitelists & Blacklists Clustering Configuration Backup Per-user quarantine

Others Hardened OS Compatible with all Email Servers Multiple Domains Multiple Email Servers HTML Analysis Syslog compatible

Spam Blocking Tagging, Quarantine, Blocking Bayesian Algorithm SpamAssassin Scoring RBLs Keyword Filtering Rate Control Denial of Service Protection Intention Analysis Anti-spoofing/phishing SPF/Sender ID Include basic outbound filtering

functionality

Virus Filtering 2 layers Decompression of Archives File Type Blocking

9

Architecture: 10 Defense Layers High performance Easily scalable

10

Barracuda SpamFirewall Model Comparison

11

Barracuda Central - Energize Subscription

Barracuda Central 24x7 operation Monitors Spam and Virus

Trends Changes New outbreaks

Hourly Updates Spam rules Virus definitions

Keeps Barracuda Spam Firewall worry free and accurate No maintenance for IT dept.

12

Web Interface

Easy Intuitive Consistent Multiple Languages

Configure and forget 96-98% spam blocking with

no adjustments

13

“Meet Barracuda Networks’ inexpensive, easy to set up, effective and very manageable antispam and antivirus firewall appliance.” - Editorial Staff, Network Computing

Award-winning Barracuda Spam Firewall“I’ve reviewed many security products, but it’s rare for me to be so impressed with a product that I want to keep and use it after the review. Barracuda Networks’ Spam Firewall is my favorite keeper so far this year.” – Roger Grimes, InfoWorld

“We have found that the Barracuda Spam Firewall system works extremely well, such that we will regret sending it back. We may well get very difficult about it.” – Mark Gibbs, NetworkWorldFusion

14

Competitive AnalysisFeatures Barracuda

NetworksBorderware Brightmail IronPort Proofpoint

Antispam Engine:

Heuristics/Bayesian

Yes Yes Yes Yes Yes

Antispam Quarantine:

Notification/Auto delete

Yes No Yes Yes Yes

Antivirus Engine Proprietary Kaspersky Symantec Sophos McAfee/Sophos

Delegated Administration No Yes No Yes Yes

Mail Server Access None POP3 access, Web mail

None None None

High availability/ scalability

Cluster/sync master

Yes Cluster Round Robin

Master/agent

Price: Per user/year for 1,000 users

$0.90** $26.55 $21.82 $34.13 $21.00

**Pricing estimates based on three year amortization; Barracuda Spam Firewall has no per-user licensing fees

Statistics reported by Network Computing (May 13, 2004)

15

CustomersEducation Government Financial

Technology/Internet Corporate

16

Customers

17

What Customers are Saying…

“In my humble opinion, you need look no further… The Barracuda Spam Firewalls provide the optimal balance of spam/virus filtering at a cost effective price point.” -Richard Applebaum, Caltrans

“We are very happy with the Barracuda Spam Firewall. It's doing its job, so we can do ours."- Darryl Dirickson, Georgia Institute of Technology “My employees were spending so much of their time

weeding through spam emails, often times deleting important emails in the process, that they couldn't get their work done. The Barracuda Spam Firewall has turned email into a productive business tool again. We are very pleased.“ -Robert Stephen, NMCGroup

“We were attacked by a server sending out the Worm.Bagel.AF.2 virus. Nothing on the network got infected, though. When my boss asked about what happened, I told him ‘The Barracuda ate the virus.’ Thanks again for the great product.” -David Goranson, Gores Technology Group

18

Customer Support

World Class 24x7 technical support Support objective

No voicemail No phone trees 100% satisfaction

“…The response from your technical support in addressing issues, has been good…. Many times (they have) assisted me on Saturdays … (they) always goes out of the way to help and respond to my e-mails very rapidly.”

-Don Logan, City of Fairbanks, North Borough

“I emailed (technical) support with a couple of quick questions and they got back with me very quickly, I also added a few suggestions about future software enhancements that they said would be forwarded on down the line.  All in all, great product at a great value.”

-Chris Martin, Hampton City Schools

“…You really went out of your way to help troubleshoot our network…my sincere thanks for your insight and help. Things all seem to be very smooth now.”

-Dan Cochran, Saratoga-Los Gatos High School District

19

Summary

Powerful Enterprise-class Solution Comprehensive feature set Spam and virus protection Automatic updates

Easy to install and use Affordable (no per user fees)

Award-winning Spam and Virus Solution Strong and Focused Reseller Program Price, Performance, and Market Leader

Barracuda Spam Firewall – Outbound

21

Barracuda Spam Firewall - Outbound

Comprehensive MTA Ensure properly formatted outbound email

Includes Barracuda Spam Firewall Features Easy to use and Configure (web interface) Secure Reporting and logging

Stops Virus Proliferation Enforces Corporate & Regulatory Policies

Foul language and security HIPAA, Sarbanes-Oxley

Prevents Spamming & Open Relay Function

22

Barracuda Spam Firewall - Outbound Deployment

23

Barracuda Spam Firewall - Outbound Key Features

Administration Email Blocking, Quarantining Reports, Graphs, and Statistics Clustering Support Multiple Domain Support Web-based Interface

Others Hardened OS Compatible with all Email Servers Supports Multiple Email Servers

Stops Virus Proliferation Dual Layer Virus Blocking Decompression of Archives File Type Blocking Virus Outbreak Warning

Enforces Corporate Policies Footer Attachment (HTML/text) Keyword Blocking/Quarantine Attachment Blocking/Quarantine Regular Expression Matching

Prevents Spamming Rate Controls Domain Restrictions IP Restrictions User Authentication Remote User Support

24

Barracuda SpamFirewall – Outbound

Model Comparison

25

Web Interface

Easy Intuitive Consistent Multiple Languages

26

Barracuda Spam Firewall - Outbound Spam Firewall 200 – Outbound

1,000 users 50,000 messages/day

Spam Firewall 300 – Outbound 2,000 users 200,000 messages/day

Spam Firewall 400 – Outbound 10,000 users 500,000 messages/day

Spam Firewall 600 – Outbound 25,000 users 1 million messages/day

Spam Firewall 800 – Outbound 30,000 users 1.5 million messages/day

Barracuda Spam Firewall– Outbound Mode

Pricing is the same as Barracuda Spam Firewall

Barracuda Spyware Firewall

28

Barracuda Spam Firewall Background A powerful anti-spam and anti-virus appliance that is easy to use and affordable for

businesses of all type Features unique layered defense approach and intuitive management console for

administrative control One of the highest spam and virus accuracy ratings in the industry

Success Quickly became the price and performance leader Recipient of a dozen awards and industry honors More satisfied customers than any competitor (20,000+)

29

Spyware Defined

Spyware is software that is downloaded onto a computer and then secretly collects and forwards information or displays advertising

Dangers Intellectual property theft Productivity loss Privacy invasion Identity theft

30

Spyware: What is the Pain? User productivity severely impacted

Desktop contains distractions Desktop very slow to operate

Help desks are overwhelmed with calls Gartner claims 25% of help desk calls are about spyware Cost to diagnose and repair computers Cost to replace or reinstall computers Difficult to remove

Infrastructure performance Degrades desktop performance Uses bandwidth and therefore increases bandwidth costs

Unknown risks and liability Information going out of the organization without any controls Spyware reporting to servers on the Internet

31

Spyware is Nasty Installation of spyware can be done with five lines of code

Thousands of exploits on Windows and IE systems enable installation Tricky text and social engineering to install Moving scrollbar can install spyware Drive by downloads require no installation – simply viewing a spyware Web site can do the trick Exploits in toolbars

Spyware download can compile on the fly Typical spyware installation contains 25 Trojans that will infect different areas of the

computer Some spyware is nearly impossible to remove and requires re-installation of the OS

32

Getting Spyware is Easy Drive-by installations

Socially engineered downloads Spoofed certificates Spoofed DNS

OS and IE exploits Thousands of exploits can install software

Bundled free software Kazaa and other music-related software DIVx and other video-related software Smileys Toolbars Discount programs/systems

33

Customer Demand for Spyware Solution Problem already exists for many companies

Some industry analysts estimate that as much as 90% of all computers connected to the Internet already have a spyware problem

Growing awareness of problem Recent estimates indicate as much as 65% of businesses will implement a solution in 2005

Not many trusted enterprise solutions available Handful of vendors offering desktop solutions

Building on Barracuda Spam Firewall success Customers seeking a powerful, easy to use, and affordable appliance solution for spyware

Introducing the Barracuda Spyware Firewall

34

Introducing the Barracuda Spyware Firewall

The first focused gateway appliance for powerful spyware, malware, and adware protection

Prevent spyware, don’t repair it!

35

Spyware Solution Criteria Prevention

Stop spyware before it reaches the desktop Do not rely on desktop configuration Catch spyware so removal is not necessary

High performance Low latency and high throughput

Low cost Easy-to-manage and install Automatically keeps up-to-date No per user fees, reasonable update fees

Adaptable Configurable and reliable

36

Barracuda Spyware Firewall

Preventative, reactive & proactive measures

1. Content filtering Blocks access to known spyware Web sites Blocks inappropriate content and Web site categories

2. Stops spyware & virus downloads Including drive-by downloads that are unknown to the user often through ActiveX Blocks .CAB, .OCX, .EXE, and .DLL files

3. Detects & blocks spyware access to the Internet Finds and blocks existing spyware installations

4. Facilitates spyware removal Informs Administrator of infected machines and infection type

37

Key Features

Spyware Activity Blocking& Reporting Detect spyware access to Internet Block spyware access to Internet Infected client and statistical reports

Additional Features IM blocking controls Web acceleration/caching Traffic reporting

System Administration Web-based interface Statistical reports Whitelist and blacklists Comprehensive logging Secure remote administration

Web Filtering Block spyware Web sites Block Web site categories Block inappropriate content Flexible policy enforcement

Spyware Download & Virus Blocking Signature-based blocking Rule-based blocking Dual layer virus blocking Decompression of archives File type blocking

38

Architecture

39

Barracuda Spyware Firewall Powerful, easy to use & install

Intuitive user interface

Affordable No per user fees

Available in five models: Spyware Firewall 210 Spyware Firewall 310 Spyware Firewall 410 Spyware Firewall 610 Spyware Firewall 810

Energize Update Subscription Similar to Barracuda Spam Firewall

Inline hardware appliance Complete scalability for growing organizations

40

Barracuda SpywareFirewall Model Comparison

41

Barracuda Spyware Firewall Deployment

42

Network Deployment

Barracuda Spam Firewall

in front of email server Barracuda Spyware Firewall

at Internet access points

43

Barracuda Central - Energize Subscription

Barracuda Central 24x7 operation Monitors latest spyware Web sites & virus threats

Hourly updates Latest updates on spyware & virus outbreaks sent direct to all

Barracuda Spyware Firewall customers

Keeps Barracuda Spyware Firewall worry free & accurate No maintenance for IT department

44

Web Interface

Easy Intuitive Consistent Multiple Languages

45

Barracuda Spyware Firewall Provides Prevention

Gateway solutions stop spyware before it enters the network

High performance Models provide high performance and near zero latency

Low cost No per user fees Simple pricing per appliance Low price

Adaptable Flexible configuration options

46

Conclusion Barracuda Networks

Number one provider of anti-spam appliances Reliable, robust, and easy-to-use solutions

Barracuda Spyware Firewall Comprehensive protection from spyware Includes content filtering Includes virus filtering

Aggressively priced The right solution at the right time Prevent spyware, don’t repair it!

Thank You!