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<p>FOR IMMEDIATE RELEASE</p>
<p>Higher Demand for Better E-Mail Management Sets the Stage for Rampant Consolidation of Hygiene Vendors, Says META Group</p>
<p>Recent Spate of Acquisitions Signals Movement Toward Single-Vendor Suites</p>
<p>SYDNEY, Australia. (October 29, 2003) According to META Group, Inc. (Nasdaq: METG), the recent spate of acquisitions among e-mail management vendors (Sophos/ActiveState, ZixCorp/Elron, and Quest/Discus Data) marks the start of what promises to be severe consolidation in this critical market through 2006. Until recently, most companies stitched together various e-mail hygiene vendors and tools for a piecemeal approach to e-mail management (which encompasses virus protection, content and spam filtering, and malicious-attack prevention).
According to a META Group survey conducted earlier this year, 80% of polled businesspeople believe e-mail is a more effective form of business communication than the telephone. These findings underscore a critical need for organisations to bring phone-like reliability and stability to the e-mail environment, creating strong demand for tools that protect and stabilise corporate e-mail infrastructures.
¡§A single-vendor approach to e-mail management creates procurement, operational, and functional efficiencies,¡¨ said Matt Cain, vice president with META Group¡¦s Technology Research Services. ¡§For this reason, the need for single-vendor suites, coupled with a vast oversupply of spam-blocking and other smaller hygiene vendors, sets the stage for rampant consolidation through 2006.¡¨</p>
<p>About META Group
META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META Group¡¦s experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit metagroup.com for more details on our high-value approach.</p>
<p>Peter Carr, General Manager