Press Release

FaceTime Sales Up 257 Percent on Record Quarterly Results

Growth Driven by Increased Customer Demand for Solutions to Secure Greynet Applications Such as IM, P2P File Sharing, and Spyware

FOSTER CITY, CALIF - August 31, 2005 - FaceTime Communications today announced sales for Q3 2005 which ended July 31, 2005, were up more than 250 percent over the same quarter last year, and increased more than 100 percent from the previous quarter, ending April 30, 2005. Driven by accelerated customer adoption for its compliance and security solutions for the management and control of greynet applications like adware/spyware, instant messaging and P2P file sharing, FaceTime also reported a record number of new IM security and anti-spyware customers for the quarter. Seats under management grew to more than 1.4 million - the largest in the industry.

"As a result of our outstanding third quarter performance, we achieved the highest revenue quarter in the company's history," said Kailash Ambwani, president and CEO, FaceTime Communications. "We have expanded our customer leadership by winning a record number of new customers for regulatory compliance, IM security, spyware prevention and P2P control. We are continuing to see our business grow within financial services and we are rapidly extending across other vertical industries as organizations recognize the need for visibility and protection against unsanctioned applications."

During the quarter, FaceTime was selected in one of the largest instant messaging security deployments in the industry - a Fortune 100 global communications leader chose FaceTime's IM security solution to secure and control IM for up to 90,000 users worldwide. Other customer highlights this quarter include one of the largest worldwide accounting and consulting firms and one of the largest national investment and financial services firms - both chose FaceTime for visibility and prevention of spyware applications within their organizations. FaceTime continued to expand its leadership in the financial services industry, now counting 17 out of 24 Financial Services Instant Messaging Association (FIMA) members as customers. FIMA is made up of the leading financial institutions, from both the buy-side and sell-side, and promotes standards and protocols within the financial services industry. Additionally, FaceTime grew its customer base within the banking industry, counting 8 of the 10 largest US banks as customers.

In addition to strong financial performance and new customers, FaceTime also achieved a number of milestones and operating highlights during the quarter:

Completed acquisition of patent-pending technology and assets of anti-spyware vendor XBlock Systems LLC, and the SpywareGuide.com community and information resource. The XBlock asset acquisition enhances FaceTime's approach to enabling the secure use of legitimate greynet applications like instant messaging (IM) and web conferencing, while providing comprehensive protection against illegitimate applications such as spyware, adware and peer-to-peer (P2P) file downloads.
Delivered Real-Time Guardian 3.0 ("RTG 3.0"), the most advanced perimeter security solution for preventing the spread of spyware and adware in the enterprise and securing unauthorized IM and P2P usage. See press release: FaceTime Announces Real-Time Guardian™ 3.0, the First Multi-Channel Anti-Spyware Perimeter Security Solution.
Strengthened executive management team with the addition of Frank Cabri as vice president of Marketing. Prior to FaceTime, Cabri was senior director of Marketing at web security company Blue Coat Systems, where he managed corporate and channel marketing initiatives. Cabri was instrumental in the repositioning of content caching vendor CacheFlow to Blue Coat Systems, where the re-launched company realized rapid growth in market valuation, achieved profitability and over $100m in annualized revenue. Prior to Blue Coat, Mr. Cabri worked as director of Product Management at Novell where he was responsible for the $125m portfolio of Internet security and network management products. Prior to Novell, he held various product marketing and product management positions with MCI.
Launched IMPact Center - a research arm of FaceTime Security Labs, the IMPact Center is the only focused and specialized intelligence and response organization that provides automatic updates to address the rapid proliferation of new IM and P2P threats and provides an aggregate risk level of the day's threats, with the IMPact Index™. FaceTime, which employs the largest lab and research team of its kind in the industry, also announced renowned malware researcher and Microsoft MVP Christopher "Paperghost" Boyd as security research manager.
Strategic partner Reuters announced availability of Reuters Messaging Compliance Manager, a service that relies on FaceTime's technology to deliver strict regulatory compliance for IM and P2P networks. The Reuters Messaging network is the world's largest hosted deployment of Microsoft's Live Communication Server 2005.
Continued international expansion announcing a partnership with UK distributor, Unipalm. Unipalm replaced IMLogic with FaceTime to deliver IM compliance and security solutions in the UK and Ireland.

"The weekly litany of information loss and corporate embarrassment should remind everyone of the growing threat from spyware and other nefarious greynet applications," said Peter Christy, Principal Analyst Internet Research Group. "Enterprises need to secure and control the legitimate greynet applications like instant messaging if they are to be confident that they can protect confidential data and maintain compliance. FaceTime is clearly the market leader in this important emerging area."

About FaceTime Communications
FaceTime Communications enables the safe and productive use of instant messaging, Web usage and Unified Communications platforms. Ranked number one by IDC for four consecutive years, FaceTime's award-winning solutions are used by more than 900 customers – including nine of the 10 largest U.S. banks – for security, management and compliance of real-time communications. FaceTime supports or has strategic partnerships with all leading public and enterprise IM network providers, including AOL, Google, Microsoft, Yahoo!, Skype, IBM, Reuters and Jabber.

FaceTime is headquartered in Belmont, California. For more information visit http://www.facetime.com or call 888-349-FACE. The FaceForward blog, at http://blog.facetime.com, offers thoughts and opinions about the changing nature of Internet communications.

PR Contact:

Emily Chamberlin
650-762-2945
echamberlin@ar-edelman.com