19 July 2011 - Arkoon announces 16% growth in group turnover in H1 2011

ROBUST GROWTH IN GROUP TURNOVER
ARKOON NETWORK SECURITY Group posted strong growth in turnover in the first half of 2011, with an increase of 16% compared with the year-earlier period. This growth represented a continuation of the favourable trend enjoyed in H2 2010, when ARKOON standalone turnover rose 13% compared with H2 2009.
Turnover (in € 000) H1 2011 H1 2010 Growth
ARKOON NETWORK SECURITY 4,602 4,063 +13.3%
SKYRECON SYSTEMS 646 477 +35.6%
Total Group 5,248 4,540 +15.6%
Turnover is shown excluding intra-group sales of products and services.

ALL BUSINESSES POSTED GROWTH
During the first half, ARKOON NETWORK SECURITY’s turnover advanced by 13.3% to €4,602K, vs. €4,063K in H1 2010:
- Growth in the “FAST” network security business was driven by version 5 and new product launches. Over the six-month period, this business expanded by 11% (up 25% in billings) and contributed €3,193K to total turnover. Growth was particularly robust in the sale of UTM appliances, which surged 40.4% demonstrating that the launch of new models has injected new vitality into the business.
- The “Security box” data protection business continued to see robust growth, posting an increase
of 18.9% to €1,408K, vs. €1,185K in H1 2010. The position of this business vis-à-vis large, longstanding
customers was strengthened.
Other operating revenue (intra-group sales and services) totalled €336K vs. €350K in the year-earlier period, bringing ARKOON’s total turnover to €4,938K vs. €4,413K over the first half of 2010.
Recurrent turnover from maintenance contracts, software updates and subscriptions to security services amounted to 51% of the total. Unearned revenue representing contract invoicing not recognised in first-halfturnover totalled €3,581K, up €602K over the period.
The portion of turnover deriving from abroad was up 14.8% from the first half of 2010.
These trends are expected to continue into the second half, which points to a significant increase in turnover for the full year.

SUCCESSFUL TURNAROUND AT SKYRECON
SKYRECON SYSTEMS was a driver behind the growth in turnover at ARKOON NETWORK SECURITY. This
subsidiary is in a redeployment phase; in H1 2011 its turnover grew by 35.6% to €646K and its invoicing
climbed by 41%.
Including invoicing for intra-group services of €109K vs. €218K in H1 2010, SKYRECON’s total turnover was €755K.
The action taken to inject fresh growth into SKYRECON’s StormShield endpoint software protection suite is paying off, with licence sales having tripled over the period. Alongside this growth, operating expenses were reduced by 40% between 2010 and 2011, indicating that a significant improvement in first-half earnings is in store.
VERY SOUND BALANCE SHEET STRUCTURE
As of 30 June 2011, the financial structure of ARKOON NETWORK SECURITY was sound, with stable equity,
cash of €4,082K and treasury net of financial debt of €1,766K, up €371K over the period.

IMPROVEMENT EXPECTED IN 2011 EARNINGS
In 2009 and 2010, the company took advantage of slower business conditions to concentrate on longer-term strategy and on developing technology around its “Security-as-a-Service” concept. This enabled it to return to growth and firm up its position as a major player in the field of security.
2011 should see a clear turnaround, with a significant rise in turnover and earnings over the full year, both at ARKOON and its subsidiary SKYRECON.
Earnings in 2011 should see the benefits of initiatives to lower structural costs throughout the group.
In addition, the company will be able to count on a contribution from recently launched products and services:
− P series FAST 360 UTM appliances,
− Smart SSL: secure access service for mobile workstations, including those not controlled by the
enterprise,
− Security Box for SharePoint V2.0 to make SharePoint environments secure,
− StormShield Server Side Edition: Windows server security (anti-intrusion),
and from numerous products and services related to virtualisation, online security services and cloud infrastructure security solutions.
The above figures were audited by the Statutory Auditors and presented to the company’s Supervisory
Board on 18 July 2011.
Next publication: H1 2011 earnings on 27 September 2011

13 November 2009 - Success of the capital increase, Finalisation of the acquisition of SkyRecon Systems

ARKOON Network Security announces the success of the reserved capital increase which took place between 30th October to 9th October.

This capital increase allows ARKOON Network Security to acquire 100% of SkyRecon Systems shares, a company specialising in Intelligent Endpoint Security.

This acquisition amounts to €2,495,705 for the basic price which could be completed by a sum ranging from 0 to €2,218,404 to be determined in 2010 depending on both companies’ turnover levels in FY 2009.

Success of the reserved capital increase

The Board, meeting on 10th November 2009, observed that the company’s capital stock rose from €4,714,110 to €5,491,228 by the creation and issue of 777,118 new shares with a face value of €1 with an issue premium of €1,554,236, i.e. a unit share price of €3.

For this operation, the financial investment company, VENTECH takes a 9% stake in ARKOON’s capital.

Appointment of Ventech as a new member of the Supervisory Board

In compliance with the decision taken by the Mixed General Meeting dated 30th October 2009, the VENTECH company is appointed as new member of the ARKOON Network Security Supervisory Board for a period of six years. VENTECH will be represented on the board by Ms Claire Houry.

Thierry ROUQUET, Chairman of the Board, declared: “We are happy to welcome the Ventech company as one of our reference shareholders and are convinced that our different experiences will allow us to steer through other projects. We are particularly satisfied to welcome SkyRecon Systems within our Group. ARKOON Network Security thus secures the means to assert its position as a major player in endpoint security solutions: network, communication, data and workstation protection” .

25 September 2009 - ARKOON announces a takeover deal for SkyRecon Systems

Lyon, September 21, 2009 - ARKOON announces today that an agreement has been signed with a view to acquiring the company SkyRecon Systems, a software publisher specialized in Intelligent Endpoint Security.


SkyRecon’s StormShield technology, directly integrated in the endpoint operating system, offers a radically new approach to protect organizations using a single-client to mitigate all endpoint-related risks: software vulnerabilities, theft or loss of critical data, inappropriate use of personal applications,unauthorized connectivity, software attacks and intrusions, internal breaches.

From its inception, the SkyRecon offer was designed in an integrated manner to streamline the choice,deployment and administration of functionalities required for endpoint protection: anti-malware and anti-intrusion protection, anti-virus and anti-spyware, control of removable devices, data encryption, application control, wireless security and network access control.

In 2008, SkyRecon Systems generated a turnover of approximately €2m and employs a 27-strong workforce to date.

With this acquisition, following the MSI takeover in 2006, ARKOON Network Security endows itself with the means to consolidate its position as a major player on the security solutions market: network,communication, data and endpoint protection. It will also strengthen its foothold in the mid-market and key account customer segments through its network of partners.

The details of this acquisition will be published once this transaction has been finalized, an event scheduled for the end of October 2009.

16 July 2009 - Activity – 1st half 2009

In an extremely difficult economic environment marked by a reduction in IT investment, the turnover of ARKOON Network Security decreased to €4,829K.
This change can be explained by two main factors:

• Activity outside France fell sharply from €527K as of 30 June 2008 to €107K as of 30 June 2009;
  Italian and Spanish markets being particularly affected by the crisis.
• Network Security sales (UTM appliances and security services) amounting to €3,302K (vs.
  €4,016K as of 30 June 2008) has been more severely affected by the current economic situation
  than Data Security (Security BOX) sales which stood up well at a figure of €1,526K, showing
  slight growth (+ 0.4%).

Over the period, Network Security accounted for 68% of total sales and Data Security for 32%.
Professional Services stood up well reaching a figure of €470K.

It should be noted that the Company made its first "Touch & Go" OEM sales which amounted to €116K
for the period.

Increase in recurring revenue

Deferred revenue (unearned revenue) was up slightly at €4,196K vs. €4,142K as of 31 December last.
Sales linked to maintenance contracts and subscriptions continued to perform well reaching €2,723K vs €2,518K as of 30 June 2008, a rise of 8.1%. This recurring revenue linked to the excellent renewal rate
for maintenance contracts, achieved to the detriment of equipment renewals (economic climate effect),has set part of the sales figure on a secure footing.

A very sound balance sheet with financing capability preserved

In this difficult climate, ARKOON Network Security has endeavoured to preserve its financial balance.
The financial structure of ARKOON Network Security as of 30 June 2009 was sound, with capital in the
region of €12M, available cash of €6M and financial debt amounting to less than 4% of its capital.

Continued conservative strategy and confidence in the future

To get through the current period and reinforce its position among the principal IT security publishers,
ARKOON Network Security is placing emphasis on its technological and commercial performance. As a
result, significant progress was made during the first half of the year:

• Version 2.2 of Security BOX Mobile, a communicating Smartphone and PDA security package,
  was successfully launched last March.
• The Appliances Network Processor (ANP) range was expanded to include a Small-250 version
  directed towards the small & medium business segment.
• A new distribution agreement was signed with D2B Informatique. This agreement comes in
  addition to those already concluded with a dense network of security expert partners.
• ARKOON Network Security and SOPHOS have joined forces to undertake a "Tour de France" to
  meet with their retailer and integrator partners.

And, to coordinate and maintain local relations with the network of partners (distributors, retailers
and operators, etc.), three new sales representatives have been recruited for the South, Rhône-
Alpes and Ile-de-France/North regions. During July, ARKOON Network Security will also be
taking on two other sales staff who will be directly in charge of major account customers with a
strong focus on the Security BOX offering.

With its sound fundamentals and robust financial structure, ARKOON Network Security is still on the
lookout for acquisition opportunities that would enable it to reinforce its offering and acquire new
technology.
2009 half-yearly results will be published on 15 September 2009 after close of trading.

11 May 2009 - Arkoon launches Small-250

ARKOON completes its range of Network Processor Appliances (NPA) with the launch of the Small-250, adding to its range of Small and Medium Business (SMB) products.

With this new appliance, Arkoon meets the security, integration, and performance requirements of small and medium businesses, whilst also providing an efficient solution to meet the requirements of the remote sites of large businesses.

Following in the example of other NPA range products, the Small-250 comprises a Cavium Octeon multicore processor, designed for network use. This architecture enables the Small-250 to reach a application FAST and VPN speed of over 100 Mbps (250 Mbps in Firewall mode), guaranteed to meet the requirements of SMBs with up to 100 users.

With 3 GB interfaces and a Fast-Ethernet port, the Small-250 can integrate into the most exacting architectures (redundancy of Wan links, multiple DMZ, Clusters) thereby guaranteeing an optimal level of security and availability.

Fitted with a high-capacity (32 GB) Solid-State Drive (SSD) flash technology disk, the Small-250 has a particularly high MTBF, whilst optimizing the functionalities related to the processing of local data.

With a recommended general public retail price of less than €2000 (ex VAT), the Small-250 will be available from 15 May 2009. Its price/performance/quality ratio is amongst the best on the market, and this new product will enable Arkoon Network security to reinforce its position as a leading provider of security services and solutions for Enterprises and Management Security Services Providers (MSSP).

28 January 2009 - Annual sales slightly up

23 October 2008 - Arkoon announces the official release of Security BOX FullCrypt computer security package.

Arkoon adds to its range of computer security products with the Security BOX FullCrypt boot encryption solution.

Security BOX FullCrypt : making your computer as safe as Fort Knox.

Security BOX FullCrypt is the latest addition to the Security BOX range. This powerful application was designed from scratch to guarantee the security of data stored on a hard disk. This is a global solution, protecting user data as well as operating system data. Authentication takes place before the operating system starts and is done using either a password or a cryptographic medium (USB token, smartcard or biometric medium). Moreover, Security BOX FullCrypt has a centralized administration tool.

This boot encryption (also referred to as surface encryption) is entirely visible to the user, and can be run on Windows Vista, XP and 2000.

As explained by Jérôme Perreard, Arkoon Security BOX Product Manager: “Increased mobility has increased the risk of theft, and losing confidential data is a major concern for businesses. Therefore, it was essential that we provide our customers with a solution to guarantee the security and confidentiality of mobile devices. The addition of FullCrypt to the Security BOX range means that we are now in a position to provide a new level of security, and clearly shows Arkoon's capacity to devise solutions in keeping with our customer’s requirements".