Liquid Machines Announces Record Sales and Deployments of its Information Protection Solutions

Waltham, MA- Liquid Machines®, Inc., the leader in Enterprise Rights Management (ERM) solutions, today announced that increased demand from Global 2000 companies and government agencies seeking information protection and compliance solutions have resulted in record sales growth of 180% in 2007; an annual increase in enterprise deployed seats of more than 210%; and growth in business related to its Microsoft Rights Management Services (RMS) product line of 260%.

“We executed well across all lines of our business in 2007,” said Michael Ruffolo, Chairman and CEO of Liquid Machines. “Our expanded partnerships, unique capabilities and enterprise-class deployments have produced exceptional results for our global customers and government agencies. With strong partnerships and increasing demand for our ERM solutions, Liquid Machines is well positioned for continued growth and greater success in our commercial, public sector and OEM businesses in 2008.”

During 2007, Liquid Machines experienced unprecedented growth and success, achieving a number of company milestones:

• Added and expanded new commercial and public sector deployments, including Goldman Sachs, Philip Morris International, SolidWorks, SOCEUR, Pioneer, Cutter Associates, SAIC, United States Marine Corp. Community Services, Dow Chemical, Wood Group, Chicos, Symantec Corporation and Department of the Interior.
• Joined Cisco, EMC and Microsoft in the Secure Information Sharing Architecture (SISA) Alliance to deliver a unique, ready-to-deploy solution designed to improve cross collaboration, communication and security within government agencies (http://www.liquidmachines.com/SISA).
• Named a strategic ISV partner in Microsoft’s Identity and Access Management (IDA) solutions program. A partner of Microsoft’s since 2004, Liquid Machines is integrated into the Information Protection solution extending the number of scenarios in which Microsoft Windows Rights Management Services (RMS) is used across the enterprise (http://www.microsoft.com/ida).
• Teamed with Symantec to integrate Liquid Machines’ ERM technology into Symantec’s Enterprise Vault content management, archival and retrieval system—ensuring that electronic content protected and encrypted using Microsoft RMS can be processed in compliance with eDiscovery regulations (http://www.liquidmachines.com/symantec).
• Partnered with SolidWorks to integrate Liquid Machines’ ERM technologies and Microsoft RMS with SolidWorks’ suite of product design and development software, enabling manufacturers and partners to securely share computer-aided design (CAD) files and collaborate throughout the development lifecycle, without fear of unauthorized usage or data loss (http://www.liquidmachines.com/solidworks ).
• Received three new technology patents in the areas of clientless secure email communication and ERM-enabling software applications, bringing its portfolio of granted technology patents to seven.
• Delivered the industry’s first and only ERM solution with a FIPS 140-2 validated cryptography module, enabling its public sector customers to meet the requirements defined by the National Institute of Standards and Technology’s (NIST) Federal Information Processing Standard (FIPS) 140-2 regulation (www.liquidmachines.com/fips).
• Received three Global Product Excellence Customer Trust Awards from Info Security Products Guide, in the categories of “Document Protection,” “Security Solution for Federal” and “Security Solution for Government” (http://www.liquidmachines.com/excellence_awards).
• Closed a $10 million round of financing led by RRE Ventures. The investment will be used to scale operations and expand internationally to meet increased global demand for its enterprise rights management solutions (http://www.liquidmachines.com/RRE).

Mike Ruffolo, CEO of Liquid Machines, will review the company’s recent performance and current business strategy at the 4th Annual America’s Growth Capital Information Security Conference on Monday, April 7 in San Francisco. The conference, hosted by America’s Growth Capital and Soleil Securities, highlights the significance of information security to the IT landscape. Investors wishing to attend the conference can learn more at America’s Growth website: http://www.americasgc.com/news-events/index.asp?id=10

About Liquid Machines

Liquid Machines is the leading provider of Enterprise Rights Management (ERM) solutions that prevent the misuse, modification, loss or theft of intellectual property and sensitive information. By applying access and usage controls with the data, electronic information is persistently protected while at rest, in transit and in use—empowering employees to securely collaborate and work with native file formats and applications. Liquid Machines enables global companies in the financial services, government, manufacturing, retail and healthcare industries to protect intellectual property regardless of where it goes, generating robust access and usage reports that demonstrate compliance with privacy and industry regulations. Based in Waltham, Massachusetts, Liquid Machines is privately held and is backed by Atlas Venture, Draper Fisher Jurvetson, Goldman Sachs & Co, Masthead Venture Partners and RRE Ventures. For more information on the company and its vision for The Freedom of Security™, please visit www.liquidmachines.com.