Nation's Largest Not-for-Profit Home Healthcare Organization Taps Websense

For Visiting Nurse Service of New York (VNSNY), the largest not-for-profit home healthcare organization in the United States, safeguarding confidential patient data while allowing its thousands of in-home nurses who use wireless laptops to use the Internet is essential to business. Recognizing the growing business value of Web 2.0 sites that allow user-generated content as communication tools, VNSNY turned to Websense, Inc. (NASDAQ: WBSN) for an integrated content-based security solution.

With 13,300 employees and more than 2,700 nurses, VNSNY cares for more than 30,000 patients daily throughout New York City and Westchester and Nassau counties. In 2008, VNSNY clinicians made close to 2.5 million home visits.

Using cutting-edge technology is a priority for VNSNY and each nurse carries a laptop to better communicate in the field, take notes during visits and access internal databases, health and medication records, and insurance information. VNSNY relies on the Websense(R) Web Security Gateway integrated with the enterprise data loss prevention solution Websense Data Security Suite, to protect essential patient information from Web-based threats and from accidental or malicious data loss.

"With thousands of nurses in the field at any given time with wireless Internet-enabled laptops, having secure access to patient data over the Web is a critical part of our organization and a reason why we are so successful," said Larry Whiteside, chief information security officer, VNSNY. "We rely on the Websense V10000 secure Web gateway appliance to enable our nurses to quickly get the information they need safely and securely. With the real-time scanning and the ability to create flexible policies around Internet use, I don't worry about our field nurses encountering a Web site that has been compromised with data-stealing malicious code or accidentally sending confidential patient data to the wrong place."

Recently, the VNSNY marketing department began exploring Facebook as a mechanism to engage a wider audience of individuals who have been a patient of, or are interested in the services provided by the VNSNY. The organization launched a presence on Facebook with a fan page that enables the social networking site visitors to receive information on events and communicate with other members of the fan page.

"Unmanaged use of Web 2.0 technology is risky, introducing potential threats and data loss, but we recognize that things like Facebook and Twitter are being used more and more by organizations like ours to communicate with patients and employees as well as recruit new employees," added Whiteside. "Websense was the only vendor that was able to give us the necessary integrated policy controls for both Web security and data loss prevention to securely enable our business. Using the integrated combination of Websense Web Security Gateway and Websense Data Security Suite enables the safe use of these Web 2.0 sites and applications because it scans content in real-time, ensuring that we don't get infected by an emerging Web threat. Additionally, if an employee or someone else tries to post company-confidential information to one of these sites, the data loss prevention solution will block it from being posted."

"Organizations are increasingly seeing business value in enabling access to Web 2.0 sites and applications. According to a recent survey of 1300 IT managers, 62 percent believe that Web 2.0 is necessary to their business, yet, the majority of these organizations admitted they lack the necessary security to protect from Web 2.0 threats," said Jim Haskin, CIO and senior vice president of marketing, Websense. "The Websense Web Security Gateway allows organizations to embrace Web 2.0 tools without fear of security risks and used in combination with our data loss prevention solution, customers like Visiting Nurse Service of New York can rest assured that their essential data is protected, while they take advantage of the latest technologies to enhance their organization."

All Websense solutions, including Websense Web Security Gateway and Websense Data Security Suite, are powered by the Websense ThreatSeeker(R) Network which continuously monitors the Internet for changes and emerging threats. The resulting intelligence is immediately incorporated into the company's Web, data and email security solutions. As a result, Websense solutions adapt to the rapidly changing Internet threat environment at speeds not possible by traditional security solutions.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Announces Participation in Upcoming Investor Conferences

Websense, Inc., the technology leader in integrated Web security, email security and data loss prevention solutions, today announced management participation in investor conferences during the fourth quarter of 2009.

TechAmerica AeA Financial Conference
Monday, November 2, 2009
San Diego, Calif.
Lazard Capital Markets Technology & Media Investor Day
Thursday, November 5, 2009
San Francisco, Calif.
Citi's 6th Annual Small & Mid Cap Conference
Thursday, November 19, 2009
New York, N.Y.
Credit Suisse Annual Tech Conference
Tuesday, December 1, 2009
Scottsdale, Ariz.
NASDAQ OMX 23rd Investor Program
Wednesday, December 2, 2009
London

To Purchase Websense Products Visit http://www.guardsense.com

Websense Reports Growth in Billings and Cash Flow

Websense, Inc. today announced financial results for the third quarter of 2009.

Third Quarter 2009 GAAP Financial Highlights

-- Revenue, calculated in accordance with generally accepted accounting
principles (GAAP), increased 5 percent from the third quarter of 2008 to
$78.6 million.
-- Operating expenses of $64.2 million decreased 4 percent from the third
quarter of 2008 and included approximately $1.2 million in severance
expenses associated with third quarter cost reduction actions,
approximately $6.2 million in acquisition related amortization and
restructuring and integration expenses and approximately $5.8 million in
stock based compensation.
-- Operating income was $1.3 million, compared to an operating loss of
$4.3 million in the third quarter of 2008.
-- Net loss was $1.9 million, or 4 cents per share, compared to a net
loss of $4.8 million, or 11 cents per share, in the third quarter of 2008.
-- Cash flow from operations was $22.5 million, compared to $17.8 million
in the third quarter of 2008. Year to date, the company has generated
approximately $65.4 million in cash flow from operations.



Third Quarter 2009 Non-GAAP Financial Highlights

-- Billings, which represent the full amount of subscription contracts
billed to customers during the period, totaled $84.5 million, an increase
of 2 percent compared to $82.7 million in the third quarter of 2008. Using
the same currency exchange rates that prevailed in the third quarter of
2008, billings in the third quarter of 2009 would have been approximately
$87.4 million, an increase of 6 percent from the third quarter of 2008.
-- International billings were approximately $41.7 million, compared to
$39.1 million in the third quarter of 2008.
-- Non-GAAP revenue of $82.2 million included approximately $3.6 million
of revenue from SurfControl that would have been recognized during this
period had SurfControl remained an independent operating company reporting
under GAAP. This subscription revenue was included in SurfControl's
deferred revenue as of the date of the acquisition, but was not recognized
as revenue on a post-acquisition basis under GAAP due to a required write-
down of SurfControl's deferred revenue to fair value as of the acquisition
date. Non-GAAP revenue in the third quarter of 2008 was $85.5 million, and
included approximately $10.6 million of revenue from SurfControl that would
have been recognized during this period had SurfControl remained an
independent company.
-- Non-GAAP operating expenses were $51 million, a decrease of
approximately $636,000 from the second quarter of 2009 and a decrease of
approximately $653,000 from the third quarter of 2008.
-- Non-GAAP operating income was $21.6 million, representing 26.2 percent
of non-GAAP revenue. This compares to $25.0 million in the third quarter
of 2008, representing 29.2 percent of non-GAAP revenue.
-- Non-GAAP net income was $13.6 million, or 31 cents per diluted share,
compared to $14.7 million, or 32 cents per diluted share, in the third
quarter of 2008.



"Our Q3 performance confirms our belief that our new products can drive incremental growth in the coming quarters given continued improvement in the economic climate. The incremental business we received from selling our market leading Web security gateway, SaaS security and data loss prevention products continued to grow, with incremental Web security gateway sales up 37 percent sequentially. Recessionary impact from distressed customers on Websense business decreased during Q3, but still remained significant," said Websense Chief Executive Officer Gene Hodges. "This performance validates our strategy and demonstrates the resiliency of a subscription based business model in a tough economic climate."

"The strength of our cash flow performance and profitability outlook for the remainder of the year has prompted us to increase the amount allocated for share repurchases in the fourth quarter to up to $12 million, compared to $7.5 million per quarter in the first three quarters of the year," added Hodges. "We have generated more than $65 million in cash flow from operations so far this year, and we are confident we will exceed our expectation of operating cash flow of approximately $80 million for the year."

To Purchase Websense Products Visit http://www.guardsense.com

Websense Completes Financial Restatement

Websense today announced that it has filed with the Securities and Exchange Commission amendments to its Annual Report on Form 10-K for the year ended December 31, 2008 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009. Amendment No. 1 on Form 10-K/A for the year ended December 31, 2008 restates consolidated financial information for the years ended December 31, 2008 and December 31, 2007, as well as quarterly results for those years.

The restatements relate to an error in the method of recognizing royalty revenue related to contracts with original equipment manufacturer (OEM) customers (and its associated impact on the tax provision), and an error in the computation of the income tax provision for the fiscal year ended December 31, 2008 that overstated the company's estimate of taxable income for the purposes of the provision. Additionally, the restated consolidated financial statements include other adjustments that were identified but not previously recorded as they were determined not to be material, either individually or in the aggregate.

The following table summarizes the quarterly impact of the adjustments to the company's reported net income and loss (unaudited, in thousands).

Previously OEM
Fiscal reported Revenue- Net income
Quarter net income timing Income tax Other (loss) as
Ended (loss) Adjustments adjustments adjustments restated
----------- ----------- ----------- ----------- -----------
June 30,
2007 $ 2,129 -- $ (828) $ (25) $ 1,276
September
30, 2007 6,395 -- (103) 59 6,351
December
31, 2007 (26,956) (1,283) 325 (61) (27,975)
March 31,
2008 (6,237) (1,939) 1,463 12 (6,701)
June 30,
2008 (8,194) (2,696) 1,602 (323) (9,611)
September
30, 2008 (3,497) (1,779) 573 (110) (4,813)
December
31, 2008 (11,943) (1,266) 7,760 (205) (5,654)
March 31,
2009 (4,295) (3,371) 6,844 (265) (1,087)
June 30,
2009 3,121 (1,585) 1,448 351 3,335

To Purchase Websense Products Visit http://www.guardsense.com

Radialpoint Leverages Websense Cloud-Based Threat Technology

Websense, Inc. (NASDAQ: WBSN), the leader in content security solutions, today announced that Radialpoint is leveraging the carrier-grade Websense security-as-a-service threat detection and protection network -- Websense(R) ThreatSeeker(R) Cloud -- to provide real-time Web security protection for more than one million of its Internet service provider (ISP) customers' end-users. Radialpoint, a leading provider of ISP-delivered managed services and support for the digital home, is using the ThreatSeeker Cloud to protect their customers from dynamic Web security threats, online fraud and phishing attacks.

Radialpoint provides some of the world's largest ISPs with a PC security solution and service-delivery platform -- Radialpoint Internet Security Services -- that helps ISPs protect their end-users from viruses, spyware, fraud, inappropriate content and other online threats. Through this new partnership with Websense, Radialpoint Internet Security Services use the Websense ThreatSeeker Cloud Web application to determine the security classification and overall reputation of a Web site and its content in real-time. The ThreatSeeker Cloud leverages security intelligence gathered from the 50 million real-time data collecting systems of the Websense ThreatSeeker Network and the company's continuously updated database of millions of classified URLs across more than 90 categories, in more than 50 languages.

By comparing Web site content that a user is trying to visit with the security and content intelligence in the Websense ThreatSeeker Cloud, Radialpoint provides ISPs access to the industry's most advanced Web security intelligence so they can, in turn, protect their individual customers in real-time from Internet threats as well as provide the flexibility for individuals to manage their Web content preferences when Web browsing. For example, when users of Radialpoint Internet Security Services visit a Web site -- in real time and transparent to the user -- the Web site and its content is analyzed through the Websense ThreatSeeker Cloud threat detection and protection network. If the Web site has been classified by Websense as malicious, fraud or phishing, the Internet user can be warned and protected from going to the site.

"Radialpoint will only work with best-of-breed vendors and Websense is the clear leader in Web threat intelligence and technology. By leveraging the Websense ThreatSeeker Cloud, users of our Internet Security Services are protected with the most up-to-date Web attack, phishing and fraud protection and Web content safety available today," said Jean-Francois Gailleur, director of product management, Internet Security, Radialpoint. "With Websense, we have seen an increase in Web security coverage and accuracy with no noticeable latency, scaling or reliability issues, even as we have added millions of users across ISPs in multiple countries to this service over the last quarter. With more than 50 million Internet subscribers worldwide, through some of the world's largest Internet service providers, we are committed to providing Internet security services that include the most reliable and effective Web security protection possible."

Radialpoint's Internet Security Services offer industry-leading Anti-Virus, Anti-Spyware, Firewall and Fraud Protection services at its core, with additional Parental Controls, PC Optimizer, Pop-Up/Ad Blocker, Privacy Manager, and Back-up services to complete the suite. The latest version of Radialpoint's Internet Security Services include a behavior-based malware detection and removal service called Proactive Protection along with Wi-Fi Security for end-users connecting to wireless networks and hotspots. Designed for the everyday user, Radialpoint's solution greatly simplifies the experience of accessing and using security, still the major barriers to consumer protection online. It also significantly reduces the burden on users and their PCs by automating critical malware updates at three hour intervals, and imposing the minimum impact on computer speed and performance. With a larger base of better-protected subscribers, Radialpoint's ISP partners enjoy lower support calls, higher customer satisfaction, positive brand association and reduced customer churn.

Websense ThreatSeeker Cloud is a security-as-a-service Web content classification system used by Websense partners including Internet service providers (ISPs), third-party developers, Web 2.0 applications, mobile device operators and other technology vendors to protect their end-users from dynamic Internet threats in real-time without the need for on-premise hardware or software. ThreatSeeker Cloud provides, as a Web-based service, access to the threat intelligence gathered by the Websense ThreatSeeker Network, which processes more than 1.5 billion security transactions daily to discover emerging threats. On average, ThreatSeeker Network identifies 250,000 new threats each month that traditional anti-virus systems do not cover.

"Radialpoint is an industry leader in providing ISPs with managed security services and support solutions that enable a better and safer Internet experience for consumers," said Devin Redmond, vice president of product management and business development, Websense. "This partnership is an example of how we are able to extend the core of our Web security and content identification capabilities through the ThreatSeeker Cloud to other applications in the security space. We've been protecting enterprise customers from the latest Web-based attacks for more than a decade. This partnership provides that leading Web threat intelligence and content identification to Radialpoint's best-in-class Internet Security Services in a high performance and scalable way to address today's Web security and safety challenges."

Today Radialpoint is using the Websense ThreatSeeker Cloud to protect Internet users from online fraud and phishing attacks. Later Radialpoint will incorporate ThreatSeeker Cloud threat and Web intelligence into a broader Safe Search offering for its ISP customers. The Safe Search offering will provide Internet users with a "score" on the security and safety of the Web content. This enables Web users to make an informed decision before going to a Web destination.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Extends Advanced Security Protection of ThreatSeeker Network

Websense, Inc. (NASDAQ: WBSN) the leader in content security solutions today introduced the Websense(R) ThreatSeeker(R) Cloud, a cloud-based security service that allows third-party solution providers to deliver added value and dynamic security protection to their products and services. The ThreatSeeker Cloud service delivers Web, data and email security intelligence through the proven cloud-based delivery infrastructure that powers all Websense content security products, including the company's software-as-a-service (SaaS) security offerings and the V10000 Web Security Gateway Appliance.

"The ThreatSeeker Cloud is basically a carrier-grade subscription service to our cloud-based content identification and intelligence infrastructure for third-party solutions providers," said Devin Redmond, vice president of Business Development and Product Management at Websense. "It extends the value of Websense technology to a new set of users in markets that we did not previously address. This new offering benefits everyone: infrastructure vendors can increase the total value of their products and services, and end users gain real-time protection and a better user experience."

The ThreatSeeker Cloud service enables access to the industry's leading content security intelligence gathered by the 50 million real-time data collection points of the Websense ThreatSeeker Network, which processes more than 1.5 billion end user security requests daily and scans more than 40 million Web sites and ten million emails each hour to discover new threats. Through a Web-based application programming interface (API), third-party solution providers can leverage the ThreatSeeker Cloud to incorporate the security intelligence of ThreatSeeker Network -- including real-time Web and content classification, reputation, behavioral analysis, file and data analysis and security filtering -- into their own products and services to protect their end users from malicious Web content, fraud and phishing attacks.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Leads Web Security Market, Achieves Rapid Growth in SaaS Security

Websense, Inc. leads the worldwide Web security market for the seventh consecutive year and nearly doubled its share of the software-as-a-service segment of the Web security market in 2008, according to a recent report from research firm IDC.(1)

IDC again named Websense the leader in the overall Web security market, which comprises software, appliance and software-as-a-service (SaaS) Web security to protect against both inbound (malware) threats and outbound (data leakage) threats. Websense captured 26.2 percent of the 2008 worldwide market growth for Web security software and grew 96.3 percent in the SaaS Web security segment.

According to the report, the growing use of Web 2.0 tools by enterprises and an increasing number of mobile and remote workers have created both a risk of data leaks and new channels for malware. As these market drivers continue, IDC forecasts the worldwide Web security market to grow 12.3 percent from $1.4 billion in 2008 to $2.5 billion in 2013, with SaaS Web security being the fastest-growing segment. To balance the business value of Web 2.0 technologies with the security risks, organizations need real-time deep content analysis and classification, as well as data loss prevention technologies.

"Websense once again leads the pack in Web security and in 2008 grew its market share of the SaaS Web security segment as well," said Brian Burke, security program director, IDC. "Websense continues to develop its core strength in discovering and classifying content across all its product offerings and provides its customers visibility and management over their information in a Web 2.0 world to control where users and data can go online."

"Websense has long been the global leader in Web security and we're now extending our leadership and experience in on-premise software to the SaaS and appliance segments of the overall Web security market with our quickly growing

Hosted Web Security and Websense V10000 Web Security Gateway appliance offerings," said John McCormack, president, Websense.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Schedules Third Quarter 2009 Earnings Announcement and Conference Call

Websense, Inc. (NASDAQ: WBSN) plans to release its third quarter 2009 financial results before the market open on October 29, 2009.

Management will host a conference call and simultaneous webcast to discuss the final results at 6:00 a.m. Pacific Time. To participate in the conference call, investors should dial 888-503-8171 (domestic) or 719-457-2626 (international) ten minutes prior to the scheduled start of the call. A simultaneous audio-only webcast of the call may be accessed on the Internet at www.websense.com/investors.

To Purchase Websense Products Visit http://www.guardsense.com

NEW RESEARCH: Websense Security Labs Reports 671 Percent Increase of Malicious Sites

Websense, Inc. (NASDAQ: WBSN) today revealed the findings from its bi-annual research report "Websense Security Labs, State of Internet Security, Q1-Q2 2009." The full report can be downloaded at http://www.websense.com/threatreport. Major findings from the report, include:

-- Websense(R) Security Labs(TM) identified a 233 percent growth in the number of malicious sites in the last six months and 671 percent growth in the number of malicious sites during the last year.

-- In the first half of 2009, 77 percent of Web sites with malicious code are legitimate sites that have been compromised. This high percentage was maintained over the past six months due in part to widespread attacks including Gumblar, Beladen and Nine Ball which aimed to compromise trusted and known Web properties with massive injection campaigns.

-- Web 2.0 sites allowing user-generated content are a top target for cybercriminals and spammers. Websense Defensio(TM) technology enabled Websense Security Labs to identify that 95 percent of user-generated comments to blogs, chat rooms and message boards are spam or malicious.

-- Efforts to self police Web 2.0 properties have been largely ineffective. Websense research shows that community-driven security tools used on sites like YouTube and BlogSpot are 65 percent to 75 percent ineffective in protecting Web users from objectionable content and security risks.

-- The "dirty" Web is getting dirtier: 69 percent of all Web pages with content classified as objectionable (e.g. Sex, Adult Content, Gambling, Drugs) also had at least one malicious link. This is becoming even more pervasive, as 78 percent of new Web pages discovered in the first half of 2009 with objectionable content had at least one malicious link.

-- Websense Security Labs found that 37 percent of malicious Web attacks included data-stealing code, demonstrating that attackers are after essential information and data.

-- The Web continues to be the most popular vector for data-stealing attacks. In the first half of 2009 the Websense Security Labs found that 57 percent of data-stealing attacks are conducted over the Web.

-- The convergence of blended Web and email threats continues to increase. Websense Security Labs reports that 85.6 percent of all unwanted emails in circulation during this period contained links to spam sites and/or malicious Web sites.

-- In June alone, the total number of emails detected as containing viruses increased 600 percent over the previous month.

Every hour, Websense Security Labs ThreatSeeker(TM) Network scans more than 40 million Web sites and ten million emails for unwanted content and malicious code. Using more than 50 million real-time data collecting systems, ThreatSeeker Network monitors and classifies Web, email and data content -- providing Websense with unparalleled visibility into the state of content on the Internet and in email.

Quote:

Websense Chief Technology Officer Dan Hubbard -- "The last six months have shown that malicious hackers and fraudsters go where the people are on the Web -- and have heightened their attacks on popular Web 2.0 sites and continued to compromise established, trusted Web sites in the hope of infecting unsuspecting users. From malicious Twitter spam campaigns and blog comment spam to the massive injection attacks, those perpetrating fraud are exploiting the inherent trust users have of known Web properties and other users."

To Purchase Websense Products Visit http://www.guardsense.com

Websense to Revise OEM Royalty Revenue Recognition Policy

Websense, Inc. today announced it will correct its revenue recognition policy relating to its original equipment manufacturer (OEM) arrangements. The change affects the timing of royalty revenue recognized over a period of seven quarters from October 2007 through June 2009. The new policy is expected to decrease revenue recognized during the seven quarter period by an aggregate of $12.0 million to $16.0 million, or $8.0 million to $12.0 million, depending upon which of two potential revised accounting treatments is applied by the company, and increase deferred revenue as of June 30, 2009 by the same amount as the applicable decrease in recognized revenue. This change will not affect the company's fundamental business operations and does not affect billings, cash flow from operations, or the total amount of revenue that ultimately will be recognized on these OEM arrangements. These arrangements were acquired in connection with the company's purchase of SurfControl plc in October 2007. The company has been recognizing the royalty revenue consistent with the manner in which SurfControl recognized royalty revenue prior to its acquisition.

"We have always been committed to providing accurate, timely and transparent information to our stockholders," said Gene Hodges, Websense chief executive officer. "These accounting changes impact the timing of revenue recognition for a relatively small part of our total revenue and deferred revenue and have no impact on our fundamental outlook or our financial strength. We discovered this issue as a part of an examination of our OEM arrangements and as soon as we determined the need to revise our accounting policies, we made the information available to our stockholders."

As a result of this change, the company's financial statements for the fiscal years ended December 31, 2007 and 2008 and for the fiscal quarters ended March 31, 2008, June 30, 2008, September 30, 2008, March 31, 2009 and June 30, 2009 should no longer be relied upon. Similarly, the reports of the company's independent registered public accounting firm, Ernst & Young, related to these financial statements and to the effectiveness of the company's internal control over financial reporting for the related periods also should no longer be relied upon.

Under the revised royalty revenue recognition policy, the company will recognize royalty revenue ratably over a period of time specified under the terms of the OEM arrangements based on resale schedules provided by OEM partners. The company is currently considering two methods of recognizing the royalty revenue: (i) a Contract Term Method whereby the company recognizes the royalty revenue ratably over a period of time equal to the greater of the company's contractual obligations to its OEM partners or the specific subscription period for end customers under the OEM arrangements, and (ii) a Subscription Method whereby the company recognizes the royalty revenue ratably over the subscription term the OEM partner enters into with the end customer. The previous accounting recognized the full amount of royalty revenue when OEM partners reported product resales.

Based on a preliminary application of the revised revenue recognition policy to subscription data in the OEM partner resale schedules, if the company accounts for the OEM royalty revenue using the Contract Term Method, the company estimates the affect on its reported revenues to be within the following ranges for the periods identified:

Estimated Decrease in Reported
Fiscal Quarter Ended Revenue
-------------------------------------- -----------------------------------
December 31, 2007 $1.0-1.5 million
March 31, 2008 $2.0-2.5 million
June 30, 2008 $2.5-3.0 million
September 30, 2008 $1.5-2.0 million
December 31, 2008 $1.0-1.5 million
March 31, 2009 $3.0-4.0 million
June 30, 2009 $1.0-1.5 million


Based on a preliminary application of the revised revenue recognition policy to subscription data in the OEM partner resale schedules, if the company accounts for the OEM royalty revenue using the Subscription Method, the company estimates the affect on its reported revenues to be within the following ranges for the periods identified:

Estimated Decrease in Reported
Fiscal Quarter Ended Revenue
------------------------------------- ------------------------------------
December 31, 2007 $1.0-1.5 million
March 31, 2008 $1.5-2.0 million
June 30, 2008 $2.0-2.5 million
September 30, 2008 $0.5-1.0 million
December 31, 2008 $0.5-1.0 million
March 31, 2009 $2.0-3.0 million
June 30, 2009 $0.5-1.0 million


Management identified the need to change the OEM royalty revenue recognition policy, and the company's audit committee and management have discussed these matters with the company's independent registered public accounting firm, Ernst & Young LLP. Management is continuing its review of this matter to determine which accounting method is most appropriate and the final impact on the company's consolidated financial statements for each of the affected periods. The company's independent registered public accounting firm has not completed its audit of the estimates described above, and management may determine that additional adjustments are required as a result of its ongoing review. The company will issue restated financial statements reflecting the changed recognition of OEM royalty revenue as soon as practicable following completion of the review and related audit by our independent registered public accounting firm.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Tops Symantec and McAfee

Websense, Inc. the leader in content security solutions, today announced that Information Security™ magazine readers honored Websense solutions across Web, email and data security categories in the fourth annual Information Security magazine and SearchSecurity.com™ 2009 Readers' Choice Awards. Websense is the only security provider to be recognized in all three content security categories.

Websense® Data Security Suite was awarded the "Gold" in the Data Loss Prevention category over competing solutions from Symantec and McAfee. Information Security described why Websense was selected as the preferred solution stating, "Receiving top scores in all categories, the Websense Data Security Suite was lauded by readers for its ease of installation, configuration and administration, its scalability, and its comprehensive and flexible reporting. Perhaps most notable were its top rankings for vendor service and support, as well as ROI."

Websense Email Security and Websense Web Security Gateway were also recognized by the magazine's readers, receiving the "Bronze" award in the Email Security and Web Security Gateway categories. About Websense Email Security, Information Security wrote, "The Websense product impressed with its ability to block spam and phishing attacks and detect email-borne viruses and spyware." Regarding the Websense Web Security Gateway, the publication noted that the product "Provides extensive, multilayered protection from Web-based threats with a combination of Websense Web protection services and ThreatSeeker™ Network to guard Web sites and servers and continually scan the Internet for emerging threats. The product has comprehensive reporting capabilities, detailed policy creation and enforcement features and impressive threat detection capabilities, according to consumers."

A record number 1721 Information Security magazine and SearchSecurity.com readers voted to determine the market's best security products, rating 380 products and services in 17 different categories. Respondents were asked to rate each product based on criteria specific to each category.

Securing wins across all three content security categories further validates Websense leadership in the content security market. Websense is the only security company that independent analyst firm Forrester Research has named a leader in all three categories for content security suites: Web, email and data security. Specifically, Websense was named a leader in The Forrester Wave™: Web Filtering, Q2 2009(1) (April 2009), The Forrester Wave™: Email Filtering Q2 2009(2) (April 2009), and The Forrester Wave™: Data Leak Prevention, Q2 2008(3) (June 2008).

"We're honored that Information Security and SearchSecurity.com readers have voiced their preference for Websense solutions across Web, email and data categories and believe it validates our focus on protecting organizations' essential information from both inbound and outbound threats and from accidental or malicious loss," said Jim Haskin, CIO and senior vice president of marketing, Websense.

All Websense solutions, including Websense Web Security Gateway, Websense Data Security Suite, and Websense Email Security are powered by the Websense ThreatSeeker™ Network, which continuously monitors the Internet for changes and emerging Web threats. The resulting intelligence is incorporated in real-time into the company's Web, data and email security solutions. As a result, Websense solutions adapt to the rapidly changing Internet threat environment at speeds not possible for traditional security solutions.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Harnesses the Cloud for Software-as-a-Service Content Security

Websense, Inc. today announced that its Software-as-a-Service (SaaS) Email and Web security solutions reached a significant new milestone processing more than one and a half billion end-user security requests per day starting in August. This is coupled with the news that Websense is discovering and preventing more than

250,000 new threats each month that legacy anti-virus security systems do not cover. Websense also revealed a clear vision for the increased role of SaaS and cloud-based security within its integrated line of content-based security solutions, highlighting its extensive infrastructure and product momentum in SaaS.

"We've reached a significant milestone of one and a half billion security requests processed per day which shows the rise in adoption of SaaS content security," said John McCormack, president, Websense. "The number is even higher when you consider all of the bad connections prevented based on the poor reputation of the source. Additionally, we are now processing more than one billion daily Web security-as-a-service transactions -- the closest competitors in this space claim less than half that number. When you combine these transactions with the number of new threats we protect customers from that no other legacy security system can match, it shows the value of our cloud-based system and infrastructure."

Websense has a long and innovative history of leveraging the cloud for security-as-a-service, both as a core, backend infrastructure and as a delivery platform for its inbound security and outbound compliance and data loss prevention solutions. Websense currently has millions of active end-users supported across its SaaS offerings, including Web Security, Email Security, Hybrid Email Security, Social Network Security, and original equipment manufacturer (OEM) partner arrangements. Websense has experienced rapid adoption of its SaaS security solutions and was recently cited in an IDC market share report as the fastest growing vendor among the top six in the Web security SaaS market.(1)

"Based on our latest research, Websense is broadening its security SaaS leadership from email to Web, the fastest growing segment of the Web security market," said Brian Burke, program director, Security Products, IDC. "Today, Websense solutions provide reliable, global coverage for thousands of enterprise and smaller customers, as well as technology and service provider partners, worldwide. As for the future, we are optimistic that its products will keep pace with customers' changing needs."

In addition to the growth in its SaaS product adoption, Websense also boasts many firsts in integrated cloud and SaaS security technology. These include the industry-leading ThreatSeeker™ Network, the industry's first and only Web 2.0 social network sensor and SaaS security system, Defensio, and the first SaaS email security solution to integrate industry leading data loss prevention technology.

Building on this integrated content security system the company is paving the way for the future of SaaS by combining the Websense cloud and on-premise platforms. The company's vision is uniquely designed to meet market requirements such as the need for flexibility and lower total-cost-of-ownership, without sacrificing security or control. With this model, customers can choose between deploying their integrated content security solution solely on-premise, solely in the cloud as a service, or in a hybrid combination with the industry's only adaptive anywhere service and management system.

This vision of a flexible delivery platform provides customers with the ability to choose the delivery platform that best meets their ever-changing network requirements and differentiates Websense from other solutions that offer only single, un-integrated points of delivery that increase costs and limit value. In fact, the Forrester Wave for Content Security Suites, Q2, 2009 states, "We believe that Websense's product strategy, built on cloud-based intelligence and cloud delivery, laid the strongest foundation for an integrated content security suite."(2)

"We are delivering the future of SaaS Web, Web 2.0 and email security today, but believe our clear direction provides a competitive advantage for tomorrow as well," added McCormack. "We will continue to leverage more of our cloud-based ThreatSeeker Network in our technologies as well as with partner-delivered solutions. What's more, we will integrate our on-premise and SaaS product capabilities into a unified management and reporting console. This integration will allow customers the choice of deploying our Web and email security anywhere -- for large and small sites, remote users, on premise, in the cloud, and as a combination of the two -- with the flexibility to transition back and forth seamlessly. Ultimately, this will give customers the greatest protection with the deployment flexibility they require."

To Purchase Websense Products Visit http://www.guardsense.com

Websense Offers Industry's Most Advanced Protection From Cybercriminals

Secure Web Gateway Classifies Specific Content on Web Pages in Real-Time, Enabling Organizations to Take Advantage of Benefits of Web 2.0, With Up-to-the-Second Protection From Threats and Inappropriate Content. Websense, Inc. today affirmed its advanced content security solutions provide protection from the growing number of shortened URLs used and shared on social networking sites such as Facebook and Twitter and in blog comments.

Unlike other Web security solutions that rely primarily on antivirus signatures to detect malware -- unique to Websense and only available with the Websense® Web Security Gateway -- if the shortened URL leads the user to a Web 2.0 Web site with dynamic content, the Websense secure Web gateway in real-time classifies the content on that page and will either allow the user to go to the site if its deemed safe and appropriate or prevent the user from visiting the page. Websense Web Security Gateway is the only secure Web gateway that can scan Web 2.0 properties in real time for content across more than 90 categories.

"For years, Websense Web Security solutions have protected customers from URLs that attempt to redirect users to malicious Web sites," said Sr. Director of Technical Marketing Bill Gardner, Websense. "Many of today's Web 2.0 sites used for business purposes are 'mashups' of different applications. Additionally, Web 2.0 sites allow third party applications and user-generated content that can change from minute-to-minute. With Websense Web Security Gateway, customers are protected from the latest threats, such as malicious shortened URLs."

View Slideshare presentation on the dangers of shortened URLs

Additional Facts

-- Use of URL shortening services like TinyURL, Snipurl, Bit.ly and Cligs is exploding due to the growing popularity of Twitter, blogs, social networking sites and other Web 2.0 sites that allow user-generated content and where users often share links with their friends, business associates and followers.

-- In June 2009, hackers were able to exploit a flaw in the Cligs' URL editing software, allowing them to hijack 2.2 million Cligs links.

-- In May 2009, Websense Security Labs alerted that "Koobface" malware, which has plagued social networking sites like Facebook, MySpace and Hi5, was spread among friend networks through the use of TinyURLs and other shortened links.

-- Taking advantage of the convenience of these services, business use of shortened URLs is growing rapidly. Most shortened URL providers now offer free analytics that enable organizations to track important data such as the number of people that have clicked on the links, where they are located and more.

-- Shortened URL service providers are reporting massive growth. According to media reports, Bit.ly is used to create 5 million to 7 million shortened URLs each day, and Snipurl has delivered 53 billion since its inception.

-- Despite the risks, organizations are continuing to adopt Web 2.0 for the many benefits it can provide. In fact, a recent Websense survey of 1,300 IT managers worldwide called Web 2.0 @ Work found that 95 percent of respondents currently allow employee access to some Web 2.0 sites and applications and 62 percent of IT managers believe that Web 2.0 is necessary to their business.

"The volume of shortened URLs and the increased use by businesses have encouraged the attention of criminals because they are a perfect way to get an unsuspecting user to click on a spam or malicious link -- the URL identity is masked to the user and they are used so commonly on sites like Twitter, social networking sites and blogs that people don't hesitate to click on them," added Gardner. "Without Web 2.0 content security that understands where the link is trying to direct the user and what type of content is on that page, in real time, malicious shortened URLs will continue to plague both businesses and consumers."

With Websense Web Security solutions, including the latest Websense Web Security and Web Filter version 7, customers are protected from shortened URLs. When a user clicks on a shortened URL, Websense technology knows if the destination Web site is serving up spam, malicious or in violation of the organization's Web use policies and protects the organization from those threats.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Releases Monthly Threat Video

Websense, Inc. today released the most recent video report covering Web threat activity for July 2009. The video supplement to the monthly "This Month in the Threat Webscape" report produced by Websense Security Labs presents an informative recap of the most pressing

Web, email and data security challenges for the month.

The video is designed to provide researchers, information security professionals and Websense customers with an up-to-date overview on breaking security research conducted by the Websense Security Lbs and other security researchers around the globe. This month's report covers:

-- Zero Day and critical threats in Microsoft IE, Firefox and Adobe
applications

-- Koobface worm maliciously targeting Twitter

-- Rumors on Twitter spreading malicious links

-- Hackers using search engine optimization (SEO) poisoning on Google to
lead to Rogue anti-virus sites

-- An exploit on Apple's iPhone which could allow a hacker to take
control of the phone through a series of text messages

To Purchase Websense Products Visit http://www.guardsense.com

Websense Secure Web Gateway Awarded Product Innovation of the Year

Websense, Inc. today announced that Frost & Sullivan, a leading research and consulting firm, awarded Websense with two prestigious awards for product innovation and marketing leadership.

Websense received the North American Product Innovation of the Year Award for Web Content Management due to its innovative Web security products, particularly the Websense(R) Web Security Gateway. Frost & Sullivan recognized Websense for developing security products that address the unique security challenges of dynamic content on today's feature-rich Web sites, especially Web 2.0 sites and applications.

"One of the important features of Websense Web Security Gateway is its ability to identify and prevent dynamic threats associated with Web 2.0 sites and applications by analyzing never-before-seen Web content in real time and blocking just the portion of the Web page that presents the threat," said Yin Fern Ko, research analyst at Frost & Sullivan. "With its dynamic threat protection and complete portfolio of Web, email and data security solutions, Websense enables companies to take advantage of the business benefits of Web 2.0 while protecting their networks and essential information from Web-based threats and data loss."

Frost & Sullivan also awarded Websense the Global Content Filtering Products Market Leadership Award for its strong product development and market strategy that have enabled Websense to remain the leader in the content filtering market for the past four years. The analyst firm reports that Websense has grown continually year after year, and that it held more than 26 percent of the $2.7 billion global content filtering market in 2008.

"While Websense has a solid foundation in the Web filtering market, the acquisition of SurfControl, PortAuthority, and the release of the Web Security Gateway has provided Websense with a strong set of integrated solutions across the converging areas of Web security, email security, and data loss prevention," said Ko.

"Websense has invested heavily in product development and strategic acquisitions to broaden our product portfolio and transform the company into the industry leader in integrated Web security, email security and data loss prevention solutions," said Jim Haskin, senior vice president of marketing and chief information officer, Websense. "These awards from Frost & Sullivan validate our product offering strategy, and we're honored to be recognized for providing innovative solutions that protect businesses and their essential information from security threats, particularly Web 2.0 threats."

To Purchase Websense Products Visit http://www.guardsense.com

Websense to Present at the 11th Annual Pacific Crest Technology Leadership Forum

Websense, Inc. , the technology leader in integrated Web security, email security and data loss prevention solutions, today announced that management will present at the 11th Annual Pacific Crest Technology Leadership Forum in Vail, Colo. on Monday, August 10, 2009 at 2:25pm PT.

To Purchase Websense Products Visit http://www.guardsense.com

Websense Expands Management Team to Support Growing Leadership in Security and DLP

Websense, Inc. today announced the expansion of its management team with the appointments of Didier Guibal as Executive Vice President of Worldwide Sales, effective immediately, and Arthur S. Locke, who will join the company as Senior Vice President and Chief Financial Officer (CFO) on July 31, 2009.

Guibal brings more than 20 years of experience in sales and marketing and more than 12 years as a senior executive at publicly-traded and private companies, including security and software-as-a-service providers McAfee, RightNow Technologies, and Panda Security, where he was most recently president.

Locke has more than 23 years of experience in finance, tax and accounting and most recently was Executive Vice President & CFO at MicroStrategy Incorporated, a publicly-traded worldwide provider of business intelligence software and services.

"I'm delighted to welcome Didier and Art to the executive team. Websense has the right strategy, and adding depth to our management team will help us hone our ability to execute during these difficult financial times," said Websense Chief Executive Officer Gene Hodges. "Their extensive industry experience will play a pivotal role in the continued growth of Websense and the innovation and delivery of our content-based security product suite."

Guibal to Integrate Sales Globally to Drive Future Growth

At Panda Security, Guibal oversaw the company's U.S. corporate and consumer security products business and architected the company's turnaround strategy. Reporting to the CEO, he worked closely with the board and management team to define and roll out best practices throughout the organization and to bring the organization back to growth.

For more than six years, Guibal was vice president of sales at RightNow Technologies, a successful pioneer in software-as-a-service (SaaS) business applications. There he grew the business from the early start-up phase to a successful initial public offering and beyond.

At security vendor McAfee, he grew through the ranks and held multiple strategic roles from Managing Director for Southern Europe to Vice President of EMEA and Latin America Sales. He was appointed Vice President Worldwide of Marketing and Alliances and Vice President of Sales for the Americas. His background also includes sales roles at Sun Microsystems, Wyse Technologies and UNILOG.

Locke to Lead Finance, Tax and Accounting

Arthur S. Locke will join Websense as Senior Vice President and Chief Financial Officer (CFO), reporting to Hodges, on July 31, 2009. Websense announced the search for a new CFO on March 12, 2009.

Locke most recently was Executive Vice President & CFO at MicroStrategy Inc. During his eight year tenure he led the global accounting and finance team as the company grew from 809 employees with $148 million in revenue to 1,915 employees with $360 million in revenue, while the business expanded its operations worldwide. He has led finance, tax and accounting at multiple publicly-traded and private companies including EIS International, Inc. and Biospherics Inc.

Doug Wride, who joined Websense in 1999 as CFO and became Chief Operating Officer (COO) in January 2009, will retain the title of COO through at least the end of 2009.

"Doug will reduce his operational responsibilities sometime in the first half of 2010 and will be working to hand off many of his key responsibilities to Art Locke, Didier Gubail and John McCormack," added Hodges. "Given the depth and breadth of his experience with Websense, there will be many operational areas where he will be able to contribute meaningfully. We expect he will remain actively involved with Websense for years to come."

To Purchase Websense Products Visit http://www.guardsense.com

Websense Confirms Second Quarter 2009 Results

Company Returns to GAAP Profitability

SAN DIEGO, CA, Jul 28, 2009 (MARKETWIRE via COMTEX News Network) -- Websense, Inc. (NASDAQ: WBSN) today confirmed financial results for the second quarter of 2009 consistent with preliminary results for billings, non-GAAP revenue and non-GAAP earnings per diluted share announced on July 7, 2009. Separately, the company announced that it has expanded its management team with the additions of Art Locke as Senior Vice President and Chief Financial Officer and Didier Guibal as Executive Vice President, Worldwide Sales.

Second Quarter 2009 GAAP Financial Highlights

-- Revenue, calculated in accordance with generally accepted accounting
principles (GAAP), increased 9 percent from the second quarter of 2008 to
$79.5 million.
-- Operating income was $2.7 million, compared to an operating loss of
$8.1 million in the second quarter of 2008.
-- Net income was $3.1 million, or 7 cents per diluted share, compared to
a net loss of $8.2 million, or 18 cents per diluted share, in the second
quarter of 2008.



Second Quarter 2009 Non-GAAP Financial Highlights

-- Billings, which represent the full amount of subscription contracts
billed to customers during the period, totaled $82.2 million, compared to
$87.3 million in the second quarter of 2008.
-- International billings were approximately $40.1 million, compared to
$46.5 million in the second quarter of 2008. Using the same currency
exchange rates that prevailed in the second quarter of 2008, international
billings would have been approximately $45.1 million.
-- Non-GAAP revenue of $84.1 million included approximately $4.6 million
of revenue from SurfControl that would have been recognized during this
period had SurfControl remained an independent operating company reporting
under GAAP. This subscription revenue was included in SurfControl's
deferred revenue as of the date of the acquisition, but was not recognized
as revenue on a post-acquisition basis under GAAP due to a required write-
down of SurfControl's deferred revenue to fair value as of the acquisition
date. Non-GAAP revenue in the second quarter of 2008 was $88.2 million,
and included approximately $15.2 million of revenue from SurfControl that
would have been recognized during this period had SurfControl remained an
independent company.
-- Non-GAAP operating income was $23.5 million, representing 28.0 percent
of non-GAAP revenue. This compares to $27.6 million in the second quarter
of 2008, representing 31.3 percent of non-GAAP revenue.
-- Non-GAAP net income was $14.5 million, or 32 cents per diluted share,
compared to $17.1 million, or 37 cents per diluted share, in the second
quarter of 2008.

To Purchase Websense Products Visit http://www.guardsense.com

Industry Expert Offers Tips About Adopting Web 2.0 Safely

Websense, Inc. , has released a new video featuring noted security and Web 2.0 expert Michael Osterman, principal and founder of Osterman Research, discussing how businesses can adopt Web 2.0 safely in the workplace.

In the video -- available at no cost at http://www.websense.com/content/web20-at-work-osterman-research-video-reg.aspx?cmpid=prnr -- Osterman discusses how the workplace dynamic, employee behavior and security threats have shifted with the rise of Web 2.0 at work. Osterman offers his take on:

-- How the rise of Web 2.0 has affected businesses and changed the way
people work

-- The Web as a primary security threat vector and how Web 2.0 can
potentially drive threats to enterprises

-- What organizations can do to measure the risk of the potential
security threats and assess the business value of Web 2.0

-- The technologies needed to take advantage of the dynamic Web, while
protecting from zero-hour, constantly changing Web, data and email threats.



The video follows a global survey of 1,300 information technology managers across ten countries, asking their perceptions of Web 2.0 in the workplace. Findings from the Web2.0 @Work survey demonstrate that IT professionals around the globe are struggling to strike a balance between taking advantage of the benefits of Web 2.0 while mitigating the security risks. The reality of the business environment today is that organizations can no longer simply block access to Web 2.0. With members of the "millennial" generation now in the workforce, employees not only expect access to Web 2.0, but some even use it as their preferred method of communication.

The Websense Web Security Gateway provides the industry's most comprehensive solution for Web 2.0 content control, content filtering and threat protection on the most advanced security platform. Websense gives organizations the power to use Web 2.0 sites safely to meet business goals without having to worry about security, productivity and liability threats, such as malware, inappropriate content and data loss.

To Purchase Websense Products Visit http://www.guardsense.com