For Immediate Release

SKYBOX SECURITY ANNOUNCES MICHAEL A. MORGAN AS CHIEF FINANCIAL OFFICER (CFO) AND COMPLETES SERIES C FINANCING

Morgan Brings Over 20 Years of Experience to Help Guide and Manage Financial Operations of Rapidly Growing Security Risk Management Company

PALO ALTO, CA - January 25, 2005 - Skybox® Security, Inc., the leader in Security Risk Management (SRM), today announced the appointment of Michael A. Morgan as chief financial officer as well as the closing of its $10.1 million Series C financing.

Appointment of New CFO

Michael Morgan has over 20 years of experience as a senior financial executive responsible for managing all aspects of finance and administration for private and publicly held software companies. Morgan spent the first six years of his career gaining financial and operations consulting experience as a senior account executive and manager with leading firms including KPMG Peat Marwick, LLP. Morgan received a Bachelor of Science degree from a San Jose State University in 1984.

"Skybox Security has demonstrated remarkable market momentum in a very short time and has achieved a notable level of respect from their customers, partners and industry experts," said Michael Morgan. "My immediate goals, along with becoming a part of and supporting the strategic management team, are to establish the financial infrastructure, policies and systems to allow the company to continue to scale rapidly.""Michael brings tremendous financial and operations experience to Skybox and will be a key part of supporting our accelerating growth," said President and CEO Gidi Cohen. Most recently Morgan was Chief Financial Officer, Vice President of Finance and Administration at Backweb Technologies. Under his leadership Morgan articulated the company's vision and financial operations initiatives to Wall Street resulting, in part, in a 10x stock price increase during this transition.

Prior to Backweb Technologies, Morgan was Chief Financial Officer, Vice President of Finance and Administration at Talarian Corporation, which undertook a successful IPO and was later acquired by TIBCO Software, Inc. in April 2002. During his tenure Morgan developed the staff and established the financial infrastructure while the company tripled its revenues.

Prior to Talarian Corporation, Morgan was Chief Financial Officer, Vice President of Finance and Administration, and Director at Enlighten Software Solutions, Inc. As one of the two original executives, Morgan revamped all financial systems and legal structure and prepared the company for its successful IPO and secondary offering. During this time period, both revenue and employee base doubled.

Series C Funding

In December 2004 Skybox Security completed a $10.1 million in third round equity financing co-led by Lightspeed Venture Partners, Benchmark Capital and Carmel Ventures with additional participation from Mofet Technology Fund and Robert Thomas, former CEO of NetScreen and a board member at Skybox. The funds will be used to leverage Skybox's market momentum and leadership by building out a strong sales and marketing infrastructure for the company's products.

"We are pleased with the opportunity to continue to support Skybox Security. Skybox has demonstrated remarkable momentum based on innovative technology that will enable corporations to continuously manage security risks in their IT infrastructures," said Ravi Mhatre, General Partner, Lightspeed Venture Partners.

"We're pleased to close our third round of financing and even more gratified that our existing group of investors decided to increase their level of investment at an appreciated per share stock price," said President and CEO Gidi Cohen.

Skybox Security was founded by security experts Gidi Cohen, former CEO & co-founder of Vigil Technologies; Moshe Meiseles, former Senior VP Development of Memco (acquired by Computer Associates); and Eran Reshef, founder of Sanctum.

About Lightspeed Venture Partners

Lightspeed Venture Partners combines extensive venture capital and operating experience to assist entrepreneurs in creating industry-leading technology companies. Lightspeed manages $2.3 billion in funds and focuses on early-stage investments in the United States and Israel. The partners of Lightspeed have contributed to the success of more than 275 companies since 1971, including AirGate PCS, Brocade, Ciena, Electronics for Imaging, FedEx, Galileo Technology, Genesys Telecommunications Laboratories, Informatica, Kiva Software, Phone.com, Quantum Effect Devices, Sirocco Systems and Vantive.

About Benchmark Capital

Founded in 1995, Benchmark Capital is an early-stage venture firm that's based on the principles of teamwork and an intense dedication to building technology companies of lasting value. Benchmark Capital focuses on providing superior service to entrepreneurs through a unique, team-oriented partnership in which every partner is equal in terms of both contribution and compensation. Benchmark's focus on teamwork combined with our deep experience in company-building have attracted the industry's top entrepreneurs, including Marc Andreessen, Mike Homer, Paul Levy, Atiq Raza and Meg Whitman.

About Carmel Ventures

Carmel Ventures is Israel's largest software focused fund. Carmel Ventures is committed to helping talented entrepreneurs translate their vision and technology into successful global software companies. Led by veterans of the software and investment industries, Carmel is a "hands-on" investor. By leveraging the extensive experience of its team and its global network of strategic partners, Carmel actively supports its portfolio companies. With $170 million under management, its investors include Citigroup, Siemens, Partners Group and other leading worldwide corporations.

About Mofet Technology Fund

Mofet, a publicly traded Israeli venture capital fund on the Tel Aviv Stock Exchange (TASE), invests its operational expertise and financial resources in cultivating enabling Israeli technologies to their fullest potential in global markets. Mofet focuses on leading-edge technological sectors where Israel is recognized as a world leader such as communications, telecommunications, knowledge management, and security. Mofet currently has $100M under management, having invested in 41 companies over the past 7 years and achieving 17 exits (six of which are traded on NASDAQ).

About Skybox Security

Skybox® Security, Inc. is the leader of next-generation Security Risk Management (SRM) solutions. The company's flagship product, Skybox® View, is the first enterprise software platform that raises vulnerability assessment, threat analysis, remediation planning and change management to the business risk level where it belongs. By combining business impact analysis and simulation with vulnerability data and network modeling, enterprises can continuously maintain risk-resilient networks, reduce regulatory compliance exposures, and shrink the window of exposure from months to hours.

With Skybox View security professionals can take a disciplined approach to measure business risk exposure, understand effectiveness of remediation alternatives, justify mitigation efforts (ROI), and minimize damage from attacks while lowering operating cost. By enhancing current best practices and internal controls with automated risk management analysis, security, network and business units can work more effectively as a team. Skybox solutions have been successfully deployed at highly respected Global 2000 companies worldwide.

Founded in 2002 the company is headquartered in Palo Alto, California and is backed by Benchmark Capital, Lightspeed Venture Partners, Carmel Ventures, and Mofet Technology Fund. For more information contact (650) 565-8060 or http://www.skyboxsecurity.com.

About Skybox View

Skybox® View automates labor-intensive risk assessment and remediation planning processes. Skybox View helps enterprises continuously collect, identify visualize and understand the total risk exposure of digital assets and proactively prioritize and optimize the mitigation steps necessary to prevent internal and external attacks. It represents the missing piece for assessing, evaluating and mitigating pre-attack exposures, taking network information and business impact into account. Unique patented modeling and attack simulation technologies generate a virtual map of business asset exposures, distilling thousands of vulnerabilities down to the one to two percent that really matter. "What if" planning analysis puts security, network and business teams on the same page, empowering IT organizations to balance the cost and benefit of proposed remediation, network changes or patches before deployment. Open collection architecture leverages existing and future investments in firewall, router, network and vulnerability scanner technologies.

Contact:
Vanessa Miali
Kesselring Communications, LLC
vanessa@kesselring.net
503.380.1884