FOR IMMEDIATE RELEASE

NetBotz Enters Japanese Market
World's Leading Provider of Physical Security Monitoring Solutions Opens Tokyo Office

TOKYO, Japan - July 16, 2003 - NetBotz, Inc., the leading global provider of IP-based intelligent physical security solutions, today announced it has opened an office in Tokyo, Japan. This move corresponds to a growing global awareness about the many kinds of physical threats that can jeopardize a business's critical assets and spaces. These threats range from physical intrusion and sabotage to hostile environmental conditions such as harmful gases, extreme temperatures and the presence of damaging water, among other things.

More than 2,100 companies throughout the world turn to NetBotz to protect their critical assets.

NetBotz will focus its Japanese efforts on establishing a distribution network serving specific market segments, including banking & finance, education, manufacturing, and hospitals, among others. In addition, the company will pursue OEM opportunities with local network product vendors as well as security systems/service providers.

"As technology density within IT-designated rooms escalates and as global concerns around physical security for all kinds of assets accelerate, companies worldwide are looking to reduce their vulnerability to physical threats," said Tom Goldman, NetBotz president and CEO. "Setting up an office in Tokyo will allow us to provide the Japanese market with localized support that meets specific Japanese needs for more affordable, effective physical security monitoring."

In Japan, in particular, the number of companies with remote, decentralized sites is growing. The cost of protecting these sites and the assets that reside within them is prohibitive. NetBotz Physical Security Monitoring Appliances or "sentries" give companies the remote eyes and ears they need to monitor and alert about harmful physical conditions. Leveraging a company's existing IP network, sentries are deployed easily by assigning them an IP address. Immediately, they actively monitor the environment, detecting trouble and then immediately sending out alerts to appropriate personnel. This early warning system prohibits costly loss of assets as well as downtime.

Recently, the company has unveiled the newest additions to its award-winning physical security solution, NetBotz 500 and NetBotz Central 2.0. See related release NetBotz Announces NetBotz 500 Physical Security Appliance.

Advances introduced surpass competitive offerings, providing the worldwide market's only secure, surveillance-level physical security solution that can provide enterprise-wide physical threat management. This, in essence, turns the NetBotz solution into an IP-based physical security network that can be viewed, managed, deployed and configured from a web browser-across buildings, borders and boundaries.

Behind the NetBotz Growth
Several factors have contributed to the enormous market acceptance of the NetBotz Physical Security solution. Foremost, the explosion of technology has created a number of unaddressed problems around the physical security of critical assets. There are too few people watching over too many assets-an especially acute problem for the organization with a number of remote, distributed locations. No organization has the money or resources to guard its infrastructure in all the places in which it resides.

In addition, hostile environmental factors such as extreme temperatures and dangerous humidity levels can lead to network and equipment downtime. Making this problem worse is the fact that rising equipment density means more heat and power in smaller spaces.

And finally there is the growing need for more security around critical infrastructure and assets-from IT assets to hospital storage spaces to facilities closets housing expensive maintenance equipment.

By providing an alerting system around the environmental factors that can threaten assets as well as a visual record of motion events, NetBotz offers customers the ability to protect their assets wherever they exist within an organization, even across geographic boundaries.

For more information, visit www.netbotz.com.

About NetBotz (www.netbotz.com)
NetBotz, Inc. is the leading global provider of IP-based intelligent physical security solutions that secure against physical threats. Some 2,100 organizations use the NetBotz solution, which prevents business and financial losses attributed to network downtime by providing early warning of conditions that threaten the integrity of a company's data, technical and equipment assets. NetBotz markets its solution through a network of distributors, solution partners and accredited resellers. Based in Austin, Texas, NetBotz is a privately held company with funding from Austin Ventures, CenterPoint Ventures, Hill Partners, Osprey Ventures, QuestMark Partners, and SSM Venture Partners. NetBotz has received the Best in Show Award in the Network Management Category at NetWorld+Interop and is a recipient of KPMG's Start-up Standout.