Untangle Offers Free Software To More Than Five Million Small Businesses

Companies with 10 or Fewer Users Can Protect and Control Their Computer Network for Free with Untangle’s On-Demand Software

SAN MATEO, Calif., Dec. 11, 2006 – Untangle, Inc. (formerly Metavize, Inc.), an emerging leader in simplifying the way small businesses get the information technology they need, today announced it is making its entire on-demand software offering free for more than five million U.S. businesses with 10 or fewer users.

In addition to Untangle’s free offering, the company today also announced reduced pricing for companies with more than 11 users. Untangle provides small businesses with a suite of software products that makes it dramatically simpler for small businesses to control network activity that reduces productivity, breaks computers, or puts data at risk. The free software, available as a download, on CD, or pre-loaded on a server, provides small businesses with enterprise-level protection, but has been specifically designed to be easy to set up and use by small businesses with part-time or small IT staffs.

In a separate release today, Untangle announced its name change, new executives, and new funding (see release titled, “Metavize Becomes ‘Untangle,’ Announces New Executive Team and $10.5 Million in Series A Financing,” dated Dec. 11). “Learning from the success of AOL’s free Instant Messenger and Adobe’s free Acrobat Reader, we are implementing a free-based—or what has recently been labeled as a ‘freemium’—strategy,” said Raul Mujica, Vice President of Marketing for Untangle and former general manager at America Online. “Our free offering will spur adoption and generate word-of-mouth between our free customers and their friends and associates at larger companies.”

While most UTM (unified threat management) and security vendors continue to charge high premiums for commodity functionality, Untangle offers its on-demand services free or at very low cost. The free Security Bundle currently includes a spam blocker, web content control, remote access portal, VPN, virus blocker, intrusion prevention system (IPS), attack shield, and more. Over time, the company will continue to add functionality to the Untangle Security Bundle, which will always remain free for businesses with 10 or fewer users.

Untangle is also announcing lower prices for companies with more than 10 users. The Security Bundle now costs $75 per month for companies with 11-30 users, and $195 per month for companies with more than 30 users. These are complete prices with no per-user fees added. Even lower prices are available for point solutions such as the Spam Blocker at $15 per month for 11-30 users and $55 per month for more than 30 users. “Adoption of spam blocking and web content filtering among small businesses is as low as 25 percent, according to some surveys,” said Bob Walters, CEO & President of Untangle. “Two main factors appear to be driving this low adoption rate: the existing solutions are not tailored to small business needs and they are too complex. But there is also a general lack of awareness. We expect this bold, “free” strategy will increase overall industry awareness and adoption.”

Availability Untangle’s free Security Bundle is available for download at www.edge.arista.com. For companies with more than 10 users, Untangle’s software solutions start as low as $10 per month.

About Untangle

Founded in 2003, Untangle is changing the way small businesses get the information technology they need. Untangle’s solutions today – which focus on network security, safe messaging, and control of web usage – allow businesses with fewer than 150 employees to “untangle” their IT infrastructure. With just a few mouse clicks, small businesses can download and activate network applications that have been pre-configured for a small business environment. Future Untangle solutions will not only evolve threat protection but also increase business productivity. Untangle’s applications are currently being used in hundreds of small businesses in a variety of industries, including financial services, real estate, education, bio-science, and professional services.