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January 17, 2008 Press Release

Enterprise Companies and ISVs Increasingly Turn to V.i. Labs as Software Piracy, Tampering, and Intellectual Property Theft Continues to Increase


Company Expands Client Base and Secures Additional Capital in 2007 to Fuel Growth; CodeArmor Fast Becoming the Industry Standard for Software Protection

Waltham, MA — January 17, 2008 - V.i. Laboratories, Inc. (“V.i. Labs”), a provider of software protection solutions for securing high-value and mission-critical applications, demonstrated that 2007 marked yet another year of continued growth, as demand for its products increased due to growing piracy, reverse engineering, and tampering threats to independent software vendors and enterprise companies.

“We see the increased demand for protecting the time and money spent on developing software applications – and the resulting intellectual property – now becoming a board-level concern,” said Joe Noonan, president and CEO, V.i. Labs. “We expect this trend to grow and be a key driver for the adoption of our technology. Company executives are quickly becoming more educated of the threats that exist, especially in emerging markets where companies look to expand their business opportunity.”

Corporate milestones in 2007 included:
  • Closed $8 million in Series B funding, further demonstrating the significant potential and growing importance of the software protection market.
  • Geoff Oblak, from Ascent Venture Partners (Boston), and Pascal Luck, from Core Capital Partners (Washington D.C.), joined V.i. Labs’ Board of Directors. They join existing Board members Dr. David Pensak, V.i. Labs’ Founder; Joe Noonan, V.i. Labs’ CEO and President; and Ross Longfield, Senior Partner at Rockford Capital.
  • The new infusion of capital allowed the company to begin the aggressive hiring of new talent in the areas of sales, marketing and engineering. This included industry veteran Bart Hanlon, who joined V.i. Labs as vice president of engineering.
Highlights from 2007 also included significant customer growth: Driven by the growing need for enterprises to protect their intellectual property, V.i. Labs secured significant new customer orders demanding its technology and solution within key vertical markets. The Company garnered a number of new customers and gained additional momentum in these markets, including:
  • A digital rights management and software licensing technology company selected CodeArmor for Microsoft .NET to protect its unique license activation software that protects its corporate and ISV customers’ software from piracy and reverse engineering.
  • A well-respected mining software firm chose CodeArmor for Microsoft .NET and CodeArmor for Windows to protect six applications from piracy and software intellectual property theft in support of its push into emerging markets.
  • A financial services firm development team selected CodeArmor for Microsoft .NET to protect its sensitive modeling algorithms contained within its enterprise applications. Multinational companies, particularly those in the financial industry, are seeking to protect their internally-developed, customer-facing applications as they expand into foreign markets.
  • And Sequoia Voting Systems, a large electronic voting vendor, began using CodeArmor to enhance the protection of its embedded software.
“We chose CodeArmor because of its capability to support our diverse application development environment and the ease in which we could layer additional security on our sensitive e-voting software,” said Doug Weinel, VP of Election Management Systems at Sequoia Voting Systems. “We see V.i. Labs as an important partner as we continue to enhance our software security strategy.”

V.i. Labs Continued its product and technology innovation of CodeArmor in 2007:
  • Extended CodeArmor to protect software applications in collaborative and outsourced development environments. Software vendors and enterprises continue to outsource to lower development costs, as well as leverage third party extensions to add value to their software platforms. But as the market for offshore development continues to increase, so does the risk of software IP theft and piracy.
  • Introduced new version of CodeArmor that protects Microsoft .NET Framework applications from the threats of reverse engineering, becoming the first software protection solution to combine encryption and active run-time security monitoring.
“CodeArmor for Microsoft .NET uses far more advanced methods than simple obfuscation technology to protect .NET applications from being decompiled and reverse engineered,” said Victor DeMarines, vice president of products. “CodeArmor is the only solution that can support protection of Windows and .NET using encryption, anti-debugging, and anti-tampering technology. This layered and comprehensive solution to securing applications continues to be recognized as the paramount approach for the protection of intellectual property in software applications.”

Significant new Partnerships reinforce V.i.Labs' position as a preeminent player in the industry: V.i. Labs also secured key alliances and partnerships to extend its solutions for preventing software piracy, code theft, and software tampering:
  • Joined Microsoft Technology Adoption Program and announced support of Microsoft Secure Licensing and Protection Strategy.
  • Teamed with the Internet Crimes Group to provide a first-of-its-kind, proactive software piracy threat assessment and prevention solution that enables customers to continually monitor and improve their anti-piracy strategy.
  • Selected for Microsoft Windows Embedded Partner Program Partnership, enabling V.i. Labs to target software vendors who need to protect sensitive applications deployed on Windows XP embedded-based devices and equipment.
About V.i. Laboratories (V.i. Labs)
V.i. Labs provides software protection solutions that protect against the misappropriation and theft of intellectual property resident in software applications. Through V.i. Labs’ patent-pending technology, software vendors, embedded system providers, enterprise organizations and government agencies are able to easily secure their software against the threat of piracy, tampering and theft, independent of where the applications are distributed. V.i. Labs is privately held and is headquartered in Waltham, MA. For more information please visit www.vilabs.com.

©2008 V.i. Laboratories, Inc. All rights reserved. V.i. Labs, CodeArmor and the V.i. Labs logo, are trademarks of V.i. Laboratories, Inc. All other product and brand names herein are trademarks or registered trademarks of their respective owners.

Contacts:
Michael Goff
V.i. Laboratories, Inc.
781.398.3451
mgoff@vilabs.com

Gene Carozza/Jason O'Keefe
PAN Communications
978.474.1900
vilaboratories@pancomm.com