© Copyright 2003. MX Logic, Inc. All rights reserved. 1

LEGISLATIVE BRIEFINGFEBRUARY 9, 2004

LEGISLATIVE BRIEFINGFEBRUARY 9, 2004

Presented by: Scott Chasin, CTOPresented by: Scott Chasin, CTO

© Copyright 2003. MX Logic, Inc. All rights reserved. 2

MX LOGIC OVERVIEWMX LOGIC OVERVIEW

MX Logic provides email protection and security solutions that safeguard enterprises, service providers and government organizations from junk email (“spam”), viruses, worms and unwanted content.

MX Logic provides email protection and security solutions that safeguard enterprises, service providers and government organizations from junk email (“spam”), viruses, worms and unwanted content.

© Copyright 2003. MX Logic, Inc. All rights reserved. 3

MX LOGIC BACKGROUND MX LOGIC BACKGROUND

APR2002 APR2002

OCT2002OCT2002

FEB – JUL2003

FEB – JUL2003

AUG – SEPT 2003

AUG – SEPT 2003

• Founded by messaging industry veterans who built and managed one of the world's largest hosted messaging services with more than 33 million mailboxes under management

• Founded by messaging industry veterans who built and managed one of the world's largest hosted messaging services with more than 33 million mailboxes under management

• Commercial service launch with fully operational redundancy with multiple messaging processing centers

• Commercial service launch with fully operational redundancy with multiple messaging processing centers

• First managed service provider to introduce Bayesian statistical classification (February)

• First managed service provider to offer spam beacon (“Web bug”) blocking (March)

• First managed service provider to offer quarantine management via

• First managed service provider to introduce Bayesian statistical classification (February)

• First managed service provider to offer spam beacon (“Web bug”) blocking (March)

• First managed service provider to offer quarantine management via

• Blocked more than 60 million instances of the SoBig.F virus

• Services available to government agencies through GSA

• Blocked more than 60 million instances of the SoBig.F virus

• Services available to government agencies through GSA

© Copyright 2003. MX Logic, Inc. All rights reserved. 4

MX LOGIC TODAY MX LOGIC TODAY

• 600+ enterprise and service provider managed service customers in financial services, energy (oil and gas), construction, education, government and service providers

• 150% growth in customer base over past 6 months, with an even higher revenue growth rate

• Customer base includes Fortune 1000 companies including Forest Oil, ProLogis, Tesoro Petroleum, Service Master among others

• Recently announced $5.5M in financing round from industry-leading investors including Adams Street Partners

• Recently announced Edwin Harper, former board member and chairman of Network Associates, has joined MX Logic’s board of directors

• 600+ enterprise and service provider managed service customers in financial services, energy (oil and gas), construction, education, government and service providers

• 150% growth in customer base over past 6 months, with an even higher revenue growth rate

• Customer base includes Fortune 1000 companies including Forest Oil, ProLogis, Tesoro Petroleum, Service Master among others

• Recently announced $5.5M in financing round from industry-leading investors including Adams Street Partners

• Recently announced Edwin Harper, former board member and chairman of Network Associates, has joined MX Logic’s board of directors

CUSTOMERS AND PARTNERSCUSTOMERS AND PARTNERS

© Copyright 2003. MX Logic, Inc. All rights reserved. 6

2004: MX LOGIC’S COMPLETE SOLUTION SUITE2004: MX LOGIC’S COMPLETE SOLUTION SUITE

MX Logic Threat Center MX Logic Threat Center

On-Premise Gateway Software (Q104) On-Premise Gateway Software (Q104)

Managed Service Managed Service

MX Logic Offering MX Logic Offering

XX

XX

Value Added Reseller

Value Added Reseller

XX

XX

Service Provider Service

Provider

XX

XX

Enterprise Enterprise

© Copyright 2003. MX Logic, Inc. All rights reserved. 7

SERVICE FEATURES SERVICE FEATURES

• DoS Attack Protection• Spam Blocking• Virus Scanning (Sophos /

McAfee)• Content and Attachment

Filtering• Outbound Filtering• Three Service Bundles• Reseller Aware• Self-Provisioning • Customer Management

• DoS Attack Protection• Spam Blocking• Virus Scanning (Sophos /

McAfee)• Content and Attachment

Filtering• Outbound Filtering• Three Service Bundles• Reseller Aware• Self-Provisioning • Customer Management

MX LOGIC MANAGED EMAIL DEFENSE SERVICEMX LOGIC MANAGED EMAIL DEFENSE SERVICE

KEY BENEFITSKEY BENEFITS

Blocks up to 98% of spam and unwanted email Rapid service activation allows for easy service trial and instant reduction of riskShields messaging infrastructure from external attack while cloaking infrastructure componentsNo additional hardware or software requiredFrees up IT resources and minimizes productivity loss from handling unwanted emailVirtually no end-user training costs – intuitive Web-based interface for service configuration and reporting

Blocks up to 98% of spam and unwanted email Rapid service activation allows for easy service trial and instant reduction of riskShields messaging infrastructure from external attack while cloaking infrastructure componentsNo additional hardware or software requiredFrees up IT resources and minimizes productivity loss from handling unwanted emailVirtually no end-user training costs – intuitive Web-based interface for service configuration and reporting

© Copyright 2003. MX Logic, Inc. All rights reserved. 8

Checksum MatchingChecksum Matching

MX LOGIC’S STACKED CLASSIFICATION FRAMEWORKSM

MX LOGIC’S STACKED CLASSIFICATION FRAMEWORKSM

• Leverages 5 of the most effective spam-fighting filters and a dynamic aggregation and analysis of the spam likelihood scores

• Aggregation of classification techniques and methods provides for a much more accurate and efficient classification scheme

– Each classifier submits a vote in conjunction with confidence factors to a “committee chairman”

– Results are converted into a single probability framework

• Trend analysis is performed to measure effectiveness of each contributing classifier

• Leverages 5 of the most effective spam-fighting filters and a dynamic aggregation and analysis of the spam likelihood scores

• Aggregation of classification techniques and methods provides for a much more accurate and efficient classification scheme

– Each classifier submits a vote in conjunction with confidence factors to a “committee chairman”

– Results are converted into a single probability framework

• Trend analysis is performed to measure effectiveness of each contributing classifier

Bayesian StatisticalBayesian Statistical

HeuristicsHeuristics

Distributed BlacklistsDistributed Blacklists

Domain LevelBlacklists / Whitelists

Domain LevelBlacklists / Whitelists

© Copyright 2003. MX Logic, Inc. All rights reserved. 9

2004: MX LOGIC’S EMAIL DEFENSE SOFTWARE OFFERING 2004: MX LOGIC’S EMAIL DEFENSE SOFTWARE OFFERING

• Industry’s first solution developed by an MSP for on-premise messaging threat management

• Groundbreaking protection—MX Logic leverages its managed service threat data for near-real-time, dynamic protection and information

• Currently being deployed with Global 100 companies and Tier One carriers

• Industry’s first solution developed by an MSP for on-premise messaging threat management

• Groundbreaking protection—MX Logic leverages its managed service threat data for near-real-time, dynamic protection and information

• Currently being deployed with Global 100 companies and Tier One carriers

© Copyright 2003. MX Logic, Inc. All rights reserved. 10

Q1 2004: EMAIL DEFENSE SOFTWARE (SP EDITION)Q1 2004: EMAIL DEFENSE SOFTWARE (SP EDITION)

• DoS Attack Protection• Virus Scanning• Spam Blocking• Content and Attachment Filtering• Outbound Filtering• Sophisticated Quarantine• Subscriber Directory

Integration• Back-office Provisioning

Integration • Multiple Subscriber Models• CRM Management Tools• Threat Update Subscription• Threat Audits

• DoS Attack Protection• Virus Scanning• Spam Blocking• Content and Attachment Filtering• Outbound Filtering• Sophisticated Quarantine• Subscriber Directory

Integration• Back-office Provisioning

Integration • Multiple Subscriber Models• CRM Management Tools• Threat Update Subscription• Threat Audits

SOLUTION FEATURES SOLUTION FEATURES

Provides turn-key managed email defense solution for commercial offeringCreates additional revenue opportunities while lowering infrastructure costRemoves objection to out-of-band MX record routing for broadband customersProvides a gateway infrastructure for future value-addsThreat Management Service provides near-real-time updates and attack intelligence

Provides turn-key managed email defense solution for commercial offeringCreates additional revenue opportunities while lowering infrastructure costRemoves objection to out-of-band MX record routing for broadband customersProvides a gateway infrastructure for future value-addsThreat Management Service provides near-real-time updates and attack intelligence

KEY BENEFITSKEY BENEFITS

EMAIL DEFENSE SOFTWARE – SERVICE PROVIDER EDITION EMAIL DEFENSE SOFTWARE – SERVICE PROVIDER EDITION

PUBLICINTERNET

PUBLICINTERNET

SendingMTA

SendingMTA

ReceivingMTA

ReceivingMTA

Incoming Unclassified

SMTPTraffic

Incoming Unclassified

SMTPTraffic

CARRIER / ISP PREMISECARRIER / ISP PREMISE

Clean Outbound

SMTPTraffic

Clean Outbound

SMTPTraffic

Heuristics Statistical

URLSignatures

Heuristics Statistical

URLSignatures

Threat Data Collection

Threat Data Collection

TRAFFICCENTERTRAFFICCENTER

UpdatesUpdates

MonitoringMonitoring

AlertsAlerts

SECURE MX GATEWAY

SECURE MX GATEWAY

Denial of Service Protection

Detects And Blocks Malicious Attacks

Denial of Service Protection

Detects And Blocks Malicious Attacks

Stacked Classification Framework

Provides Single Probability of Spam

Likelihood

Stacked Classification Framework

Provides Single Probability of Spam

Likelihood

Additional Filtering and Policy Control

Optional Contentand Virus Filtering

Additional Filtering and Policy Control

Optional Contentand Virus Filtering

CarrierRouted

IP Traffic

CarrierRouted

IP Traffic

Sophisticated Quarantine

RecipientAccessible

Safe Quarantine

Sophisticated Quarantine

RecipientAccessible

Safe Quarantine

OpenwaveMX KX

MessageStore

OpenwaveMX KX

MessageStore

ENTERPRISEUSER

ENTERPRISEUSER

CONSUMERUSER

CONSUMERUSER

Inbound SMTPOutbound SMTPQuarantine Access

Inbound SMTPOutbound SMTPQuarantine Access

MX LOGIC THREAT CENTERMX LOGIC THREAT CENTER

MX LogicSecure MX Gateway

MX LogicSecure MX Gateway

Stacked Classification FrameworkSM

URL Spamtraq TechnologySM

Stacked Classification FrameworkSM

URL Spamtraq TechnologySM

HTTP PostDelivers

EmbeddedSpam URLs

HTTP PostDelivers

EmbeddedSpam URLs

HTTP PostDelivers

Threat Stats

HTTP PostDelivers

Threat Stats

THREAT UPDATE CENTER• Heuristics• Statistical training data• URL signatures• Deny lists

THREAT UPDATE CENTER• Heuristics• Statistical training data• URL signatures• Deny lists

THREAT COLLECTOR• Spam URL analysis• Threat and traffic statistics

THREAT COLLECTOR• Spam URL analysis• Threat and traffic statistics

THREAT MONITOR• MTA availability• Threat level• Reporting

THREAT MONITOR• MTA availability• Threat level• Reporting

THREAT ALERTS• Virus / worms• Denial of service• Spam attacks• Vulnerability alerts

THREAT ALERTS• Virus / worms• Denial of service• Spam attacks• Vulnerability alerts

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Enterprise Messaging

Infrastructure

Enterprise Messaging

Infrastructure

© Copyright 2003. MX Logic, Inc. All rights reserved. 13

MX Logic Threat Center MX Logic Threat Center

THREAT MANAGEMENT SERVICESTHREAT MANAGEMENT SERVICES

THREAT UPDATES

• 24x7 Heuristic creation

• Weekly statistical updates

• Spamtraq URL signature collection and dissemination (04)

• Analysis of spam submissions

THREAT UPDATES

• 24x7 Heuristic creation

• Weekly statistical updates

• Spamtraq URL signature collection and dissemination (04)

• Analysis of spam submissions

THREAT ALERTS

• Threat event driven alerting

• Third-party advisory analysis

• Traffic and policy reporting

THREAT ALERTS

• Threat event driven alerting

• Third-party advisory analysis

• Traffic and policy reporting

THREAT AUDIT

• Complete messaging threat assessments

THREAT AUDIT

• Complete messaging threat assessments

© Copyright 2003. MX Logic, Inc. All rights reserved. 14

Q1 2004: EMAIL DEFENSE SOFTWARE (ENTERPRISE EDITION)Q1 2004: EMAIL DEFENSE SOFTWARE (ENTERPRISE EDITION)

Anti-abuse gateway email defense solution with external message quarantines

End-user controls for opting-out and spam management

Bulletproof SMTP DMZ for added layered security and policy enforcement

Displaces open source MTAs which are historically insecure

Threat Management Service provides near-real-time updates and attack intelligence

Anti-abuse gateway email defense solution with external message quarantines

End-user controls for opting-out and spam management

Bulletproof SMTP DMZ for added layered security and policy enforcement

Displaces open source MTAs which are historically insecure

Threat Management Service provides near-real-time updates and attack intelligence

KEY BENEFITSKEY BENEFITSSOLUTION FEATURES SOLUTION FEATURES

• DoS Attack Protection

• Virus Scanning

• Spam Filtering

• Content and Attachment Filtering

• Outbound Filtering

• Sophisticated Quarantine

• Enterprise Directory Integration

• Threat Update Subscription

• Threat Audits

• DoS Attack Protection

• Virus Scanning

• Spam Filtering

• Content and Attachment Filtering

• Outbound Filtering

• Sophisticated Quarantine

• Enterprise Directory Integration

• Threat Update Subscription

• Threat Audits

Q1 2004: SPAMTRAQ TECHNOLOGYQ1 2004: SPAMTRAQ TECHNOLOGY

• Most efficient classification technique

• Quick dissemination of spam URL signatures

• Near-real-time feedback loop

• Greater view of spam attacks

• Most efficient classification technique

• Quick dissemination of spam URL signatures

• Near-real-time feedback loop

• Greater view of spam attacks

PUBLICINTERNET

PUBLICINTERNET

SendingMTA

SendingMTA

ReceivingMTA

ReceivingMTA

Incoming Unclassified

SMTPTraffic

Incoming Unclassified

SMTPTraffic

Clean Outbound

SMTPTraffic

Clean Outbound

SMTPTraffic

Spamtraq Data Collection

Spamtraq Data Collection

THREATCENTERTHREATCENTER

SignatureCreation

SignatureCreation

ConfidenceScoring

ConfidenceScoring

Offline AnalysisOffline

Analysis

SECURE MX GATEWAY

SECURE MX GATEWAY

Stacked Classification

Framework

Classifies Spam Probability

Stacked Classification

Framework

Classifies Spam Probability

Extract ExternalURL Information

Batch URL Data and Package for Threat

Center Delivery

Extract ExternalURL Information

Batch URL Data and Package for Threat

Center Delivery

Send URL Data to Threat Center

Retrieve Updated or New URL Signatures

Send URL Data to Threat Center

Retrieve Updated or New URL Signatures

PulledSpamtraq Updates

PulledSpamtraq Updates

• Rapid analysis of possible worm threats

• Quick signature dissemination of discovered worms

• Protects outbound messaging from worm traffic

• Removes requirement for full payload scan thus lowering network impact

• Rapid analysis of possible worm threats

• Quick signature dissemination of discovered worms

• Protects outbound messaging from worm traffic

• Removes requirement for full payload scan thus lowering network impact

Q1 2004: WORMTRAQ TECHNOLOGYQ1 2004: WORMTRAQ TECHNOLOGY

PUBLICINTERNET

PUBLICINTERNET

SendingMTA

SendingMTA

ReceivingMTA

ReceivingMTA

Incoming Unclassified

SMTPTraffic

Incoming Unclassified

SMTPTraffic

Clean Outbound

SMTPTraffic

Clean Outbound

SMTPTraffic

PulledSpamtraq Updates

PulledSpamtraq Updates

Spamtraq Data Collection

Spamtraq Data Collection

SECURE MX GATEWAY

SECURE MX GATEWAY

Scan Message for Attachments

Creates Attachment Signature

Scan Message for Attachments

Creates Attachment Signature

Wormtraq Lookup

Batches Signatureand Readies

Package for Delivery

Wormtraq Lookup

Batches Signatureand Readies

Package for Delivery

Send AttachmentData to Threat Center

Retrieve Updated or New Attachment

Signatures

Send AttachmentData to Threat Center

Retrieve Updated or New Attachment

Signatures

THREATCENTERTHREATCENTER

SignatureCreation

SignatureCreation

ConfidenceScoring

ConfidenceScoring

Offline AnalysisOffline

Analysis

2004 – 2005 PRODUCT DEVELOPMENT: “NETBOX”2004 – 2005 PRODUCT DEVELOPMENT: “NETBOX”

SECURE MXGATEWAY + NETBOX

SECURE MXGATEWAY + NETBOX

Public Key Credentials Provide Preferred

Access to thePublic Netbox

Public Key Credentials Provide Preferred

Access to thePublic Netbox

Stacked Classification Framework Provides

Filtering of Rogue Unsolicited Messages

Stacked Classification Framework Provides

Filtering of Rogue Unsolicited Messages

Permission Based Challenge / Response Protects the Private

Inbox fromUnsolicited Messages

Permission Based Challenge / Response Protects the Private

Inbox fromUnsolicited Messages

SOLICITEDBULK

Grey Content OPTin Messaging

SOLICITEDBULK

Grey Content OPTin Messaging

UNSOLICITEDBULK

Traditional Spam Rouge Messages

UNSOLICITEDBULK

Traditional Spam Rouge Messages

LEGITIMATE MESSAGING

Personal and Business

Messaging

LEGITIMATE MESSAGING

Personal and Business

Messaging

PUBLICNETBOX

PreferredDelivery Paid

Placement

PUBLICNETBOX

PreferredDelivery Paid

Placement

PRIVATEINBOX

Auto Whitelist Creation

Addressbook Integration

PRIVATEINBOX

Auto Whitelist Creation

Addressbook Integration

© Copyright 2003. MX Logic, Inc. All rights reserved. 18

Q & AQ & A