HyTrust Raises $18.5 Million In Series C financing

PRESS RELEASE

Mountain View, CA – August 26, 2013 – HyTrust Inc., the Cloud Security Automation Company, today announced Series C oversubscribed financing in the amount of $18.5 million from new investors Intel Capital and Fortinet as well as recent investors VMware and In-Q-Tel. Previous investors Granite Ventures, Cisco, Trident Capital and Epic Ventures also participated in this round. The new funding will support the company's rapid growth and operations, particularly in the areas of sales and marketing, and enable continued development on the cloud security platform as well as innovations in important technological areas such as Role-Based Monitoring (RBM).

Jeff Byrne, Senior Analyst at Taneja Group, commented: "Next-generation datacenters need next-generation security. As organizations seek to avoid security breaches, meet new requirements (such as the NSA's two-man rule to restrict access to sensitive information) and address audit and risk, they'll look toward more effective solutions, including role-based monitoring and alerting capabilities, to more quickly and accurately detect and block threats," he explained. "The new, dynamic datacenter will be automated and policy-based. HyTrust's focus on security and control, combined with growing awareness about these issues, will likely propel the company's growth in 2013 and beyond."

HyTrust's Series C financing round follows a year of rapid growth and momentum, with worldwide sales on target to quadruple in 2013 alone. The company's award-winning cloud security platform continues to deliver security, control, visibility, management and compliance to virtualized environments, serving corporations in a wide range of industries. It is also the most scalable multi-tenant solution and the only platform capable of independently integrating broadly with other best-in-class virtualization or cloud platforms.

"As computing and data center operations increasingly become virtualized and hosted in cloud environments, organizations need to approach threat prevention differently to protect corporate assets and reduce attack vectors," said Arvind Sodhani, President of Intel Capital and Intel Executive Vice President. "The HyTrust security solution addresses control and integration challenges, removing key barriers to cloud adoption. This investment along with the Intel Corporation engagement will help the company deliver a hardware assisted trusted security solution for the datacenter."

Fortinet provides best-of-breed network security for enterprises and service providers. More and more, these systems are running within virtualized data center environments. Fortinet's protection of virtual machines complements HyTrust's protection of the virtual infrastructure – together there are great development opportunities to automate and orchestrate security across the entire virtualized data center.

Michael Xie, Founder and CTO of Fortinet, said: "Next-generation data centers will be virtualized, dynamic and multi-tenant. With that, security and compliance has to be automated and policy-based to enable this software-defined data center model. HyTrust is at the very core of this movement by enabling policy enforcement and visibility for multi-tenant cloud environments. This is a great complement to Fortinet's leading network security products to enable end-to-end security for virtualized data center environments."

"Averting a datacenter disaster is top-of-mind for every chief information and security officer, and HyTrust provides complete visibility into what's happening in cloud environments, with advancements that enable customers to identify and stop breaches before damage is done," said Eric Chiu, President and Founder of HyTrust. "In the current environment, following widely publicized incidents like the NSA and Shionogi breaches, organizations are far more aware of the dangers of not having real-time visibility into datacenter operations, or the assurance that policies are automated, applied correctly and enforced. They need to know that potential threats can be contained--it's the only way to maintain brand reputation, protect revenues and mitigate financial risk."

HyTrust investors are among the most significant companies in datacenter hardware and software, and are among the most important members of the company's diverse partner ecosystem, which consists of key players in virtualization, security, systems management, logging, risk and compliance, among others.

About HyTrust (www.hytrust.com)

Cloud Under Control&trade

Headquartered in Mountain View, CA, HyTrust® is the Cloud Security Automation (CSA) company. HyTrust delivers the essential real-time control, security, administrative account monitoring, logging and compliance assurance necessary to enable the benefits of cloud adoption and virtualization of critical workloads. The Company is backed by top tier investors VMware, Cisco, Intel Corporation, In-Q-Tel, Fortinet, Granite Ventures, Trident Capital, and Epic Ventures; its partners include VMware, VCE, Symantec, CA, McAfee, Splunk; HP Arcsight, Accuvant, RSA and Intel Corporation.