Microsoft Strengthens Secure Access Platform With Close of Whale Acquisition

REDMOND, Wash. — July 26, 2006 — Microsoft Corp. today announced it has completed the acquisition of Whale Communications Ltd., strengthening Microsoft’s secure access platform ( Whale’s best-of-breed product line includes the Intelligent Application Gateway, which combines Whale’s secure sockets layer (SSL)-based access and application protection technologies with Microsoft® Internet Security and Acceleration (ISA) Server. To mark the deal close, Microsoft is providing a special price promotion for all current and new customers.

Now through Dec. 31, 2006, customers will receive 25 percent off the list price of the Whale Intelligent Application Gateway and 25 percent off on any add-on modules, including Whale’s Connectivity Modules and Application Optimizers. Whale’s Application Optimizers add the benefits of customized policy and content inspection for Microsoft applications and third-party customer relationship management, enterprise resource planning, and collaboration platforms.

“This acquisition and Whale’s products help us fulfill our promise to protect information and control access and move us closer to our vision of providing a comprehensive secure access platform,” said Bob Kelly, general manager of Infrastructure Marketing at Microsoft. “Microsoft is committed to the continued investment and support of Whale technology and its focus on optimizing Microsoft and third-party applications, as SSL-based access and application protection are integral parts of our secure access road map.”

Whale distinguished itself in the marketplace with its early focus on application-level security. Microsoft plans to further integrate the Whale access and application optimization technologies into its secure access platform, including ISA Server, in the future.

“We have been using the Whale Intelligent Application Gateway for employee and partner access, and we’re excited that this acquisition brings Microsoft’s expertise, support and engineering investment to this technology and helps us further achieve a cost-effective balance between access and security requirements,” said Gary Cooper, applications architect at E.ON UK, one of the U.K.’s leading energy suppliers and part of the world’s largest investor-owned power and gas company.

As with Microsoft’s current security solutions, Whale’s products enable partners to offer strong security solutions and services to their customers. In addition to Whale’s existing global partner channel, Microsoft field sales professionals are now able to sell and support Whale’s products. Microsoft is also committed to releasing these products through its channel of original equipment manufacturers (OEMs) in the near future.

“As one of Microsoft’s OEM partners, Network Engines has been building innovative security appliances based on ISA Server for over two years,” said Greg Shortell, president and CEO of Network Engines Inc. “We look forward to offering our customers and channel partners new appliances based on this industry-leading technology.”

The Whale acquisition follows Microsoft’s recent announcement of Microsoft Forefront, the new brand for its portfolio of security products. Microsoft Forefront-branded products will be rolled out with the next wave of Microsoft’s business security and secure access products across the client, server and network edge.

Whale Communications is now a wholly owned subsidiary of Microsoft Corp.

Product Availability

All Whale Communications products, including the Intelligent Application Gateway, remain immediately available through Whale and its global partner channel and Microsoft sales professionals. More information and product specifications are available at or

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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