New California Privacy Regulation Impact to be Felt Across USA, Says Network Intelligence.

Business Editors/High-Tech Writers

WALPOLE, Mass.--(BUSINESS WIRE)--April 30, 2003

New Law Requires Organizations to Detect,

Disclose Unauthorized Access of Personal Information

With two months to go until a tough new privacy regulation becomes active in California,

Matt Stevens, vice president of marketing and technology at Network Intelligence Corporation, said, "The California law moves the focus from keeping intruders on the outside to actually ensuring the security of the data. That change in focus will present a significant challenge to security administrators across the country who must comply with this law."

Mark Nicolett, vice president at Gartner Research, states that "Businesses that have installed security measures, such as firewalls, intrusion detection systems and intrusion prevention systems have created a hard outer shell at the perimeter of the network. Once intruders get past that outer shell, those devices provide no means of protecting the data or restricting who has access to it."

In addition to perimeter security efforts, security experts recommend organizations capture and monitor event logs - information generated by all network devices as they process traffic - to determine the exact nature of activity, within and outside of the firewall.

"Event logs provide the who, what, when and where of network activity," said Stevens. "Whether an intruder sneaks in past a firewall or a nosy employee decides to poke around in customer records, logs provide a permanent record of that activity - provided you capture them and review them. Only with this complete record can you know for sure that the personal information on your network has not been accessed by an unauthorized person."

Passed in November, California Senate Bill 1386 extends beyond California's borders by including any organization with information on Californian citizens, regardless of its physical location. Organizations that fail to comply could face civil suits and fines.

About Network Intelligence Corporation

Network Intelligence Corp. has been developing and delivering network and security event management solutions since 1996. More than 2,300 customers have turned to Network Intelligence Corp. for industry leading technology. Network Intelligence Corp. is the developer of the industry's first logging appliance, The Network Intelligence Engine(TM). The Company's appliance and software solutions collect network event log data from security and network devices to create a complete picture of network usage, verify security policy compliance, generate alerts for possible security breaches, provide correlation of data across devices, and analyze and report on network performance. Headquartered in Walpole, Massachusetts, Network Intelligence Corporation has sales representation across the United States, Europe and Japan. For more information about Network Intelligence Corp., please visit the Company's web site at www.network-intelligence.com, or phone 508-668-2460.