For Immediate Release

Bluefire Closes $6 Million Investment Round

Emerging Leader in Mobile and Wireless Security Poised for Growth

Baltimore, MD November 13, 2002 — Bluefire Security Technologies, Inc., an emerging leader in security solutions for mobile and wireless handheld devices, today announced it has closed a $6 million second-round of funding led by JK&B Capital. The funds will be used to expand business operations and commercialize the world’s first mobile firewall for handheld devices following successful trials with leading enterprise customers, wireless application providers, and system integrators.

"We were very impressed by Bluefire’s unique breakthrough technology, clear value proposition, and large market opportunity," said Marc Sokol, Partner at lead investor, JK&B Capital. "Security for mobile and wireless devices is a must-have requirement for enterprises and government agencies to deploy high value, mission critical mobile applications."

Bluefire has developed patent-pending innovations to traditional firewall and intrusion detection technologies that enable enterprise-class security for the rapidly growing array of handheld devices such as personal digital assistants (PDAs), smart phones, and tablet PCs. By focusing on security for the handheld, Bluefire is addressing one of the few remaining stumbling blocks to widespread adoption of mobile and wireless handheld devices for commercial applications.

"Leading enterprises in healthcare, government, and other markets are driving the mobile and wireless revolution," said Mark Komisky, CEO of Bluefire Security Technologies. "For example, over a dozen hospital centers are deploying or piloting mobile and wireless applications. These leaders must address security and privacy issues before they can take full advantage of the tremendous opportunities in areas such as bed-side diagnostic assistance, mobile patient record retrieval, and wireless drug prescription submission."

IDC projects the mobile security software market to hit $1 Billion by 2006 (IDC #27354, July 2002). Bluefire provides a unique solution for this market with its patent-pending firewall and intrusion detection technologies that have been architected specifically for the stringent requirements of mobile and wireless handheld devices.

"Security is the Achilles’ heel of the mobile and wireless revolution," said Matthew Kovar, Director of Security Solutions & Services at Yankee Group. "Securing the handheld device itself is a critical first step toward building security into enterprise mobile and wireless applications; without this trusted foundation, other security mechanisms such as IP VPNs and authentication would be absolutely worthless."

JK&B joins first round investors Walker Ventures, Maryland Angels Council, and Maryland Department of Business and Economic Development. Bluefire was founded in early 2001 to focus on the critical issue of security for mobile and wireless applications. Led by a team of veterans from the security, Internet, and telecom markets, Bluefire has been able to rapidly develop its key core technologies with its seed funding. With successful trials underway, Bluefire is well positioned to capitalize on the critical security issues that are hindering today’s mobile and wireless applications market.