St. Bernard Software Announces Acquisition Of Red Condor

PRESS RELEASE

San Diego, CA – August 4, 2010 – St. Bernard Software, Inc. (OTCBB:

SBSW), a leader in Web security appliances, today announced the acquisition of

substantially all assets of Red Condor Inc., the award-winning provider of fully

managed email security solutions.

The acquisition builds upon the success of St. Bernard’s existing hybrid platform,

which has served the SME market through a combination of high-performance

appliances, software, and hosted security solutions. With the Web security

market expected to grow to $2.3 billion by 2012, and the protection of leading

applications such as email and messaging remaining a primary concern across

global enterprises of all sizes, the acquisition of Red Condor’s managed security

solutions is a natural extension of St. Bernard’s product portfolio and business

strategy.

“This acquisition milestone is a truly exciting time for both St. Bernard and Red

Condor, as it creates great opportunities for growth with our shared hybrid

security vision,” said Lou Ryan, President and CEO at St. Bernard. “The strategic

match we have found in Red Condor establishes greater breadth and depth in

our hosted, hybrid and on-premises options, and increases the overall value to

our customers and partners. With the integration of Red Condor’s carrier-grade

technology and platform, we are perfectly positioned to accelerate our growth

engine and work with an increasing and diversified base of customers across

multiple security solutions.”

As a result of the acquisition, St. Bernard will gain over 1,900 new customers as

well as Red Condor’s extensive ISP and MSP partner network. St. Bernard’s

enhanced hybrid platform allows the company to extend new and unique value to

subscribers of these previously underserved markets with a full suite of easy-touse,

cost-effective and scalable security solutions.

“Red Condor is widely recognized for the simplicity and scalability of its unique

hybrid offerings,” continued Ryan. “The Red Condor platform and the vision

behind it, dovetail perfectly with St. Bernard’s primary technology offering and

reinforces our key attributes of value, simplicity, and performance.”

Founded in 2004, Red Condor has approximately 35 employees and is

headquartered in Rohnert Park, California. The company’s hosted and hybrid

email spam filtering solutions have garnered numerous industry awards and

recognition, and most recently proved to outperform competitive spam filters in

an independent test of email filter accuracy by Miercom. The report not only

validated Red Condor’s hybrid technology offering, but also confirmed that the

company had the highest block rate, zero false-positives and only one

misclassified message for every 1,970 messages received during the one-week

test. The complete results can be found at

http://www.redcondor.com/resources/downloads/072710.miercom-report-rc.pdf

For a complete description of the terms and conditions of this acquisition, please

refer to the Form 8-K issued by the Company and filed with the SEC on August

3, 2010.

For further information on St. Bernard Software and its complete suite of security

products, please visit www.stbernard.com. Additional information on Red Condor

can be found at www.redcondor.com

About St. Bernard Software

St. Bernard Software develops and markets Internet security appliances and

services that empower IT professionals to effectively, efficiently and intelligently

manage their enterprise’s Internet-based resources. Originally founded in 1995

as a market-leader in data security with its flagship product, Open File

Manager™, the company is now recognized for delivering today’s #1 Web

filtering and security appliance, iPrism'. With millions of end users worldwide in

more than 5,000 enterprises, educational institutions, SMB, and government

agencies, St. Bernard strives to deliver simple, high performance solutions that

offer excellent value to our customers.

Based in San Diego, California, St. Bernard (OTCBB: SBSW) markets its

solutions through a network of value added resellers, distributors, system

integrators, OEM partners and directly to end users. For more information about

St. Bernard Software, visit www.stbernard.com.

About Red Condor

Red Condor is revolutionizing spam fighting with its next generation technology.

Red Condor’s highly accurate email filter, hybrid architecture Vx Technology™,

and fully managed appliances lead to a dramatic reduction in the cost of owning

a premium spam filter. With solutions for small business, as well as ISPs with

millions of email inboxes, Red Condor has a cost-effective, timesaving solution

that is rapidly gaining market share. The system’s design has built-in zero

tolerance for lost email, and a near zero false positive rate while achieving longterm

spam block rates greater than 99%. Red Condor Archive is a secure

message archiving service with lifetime retention and unlimited storage. The

company’s next-generation technology is backed by a 24x7 customer care center

staffed by email security experts at Red Condor’s headquarters. For more

information visit www.redcondor.com