ROHNERT PARK -- San Diego-based St. Bernard Software Inc. (OTCBB: SBSW), maker of Web security appliances, today announced the acquisition of substantially all assets of Rohnert Park-based Red Condor Inc., provider of fully managed email security solutions.

The acquisition builds upon St. Bernard's existing hybrid platform, which has served the SME market through a combination of high-performance appliances, software, and hosted security solutions. With the Web security market expected to grow to $2.3 billion by 2012, and the protection of leading applications such as email and messaging remaining a primary concern across global enterprises of all sizes, the acquisition of Red Condor's managed security solutions is a natural extension of St. Bernard's product portfolio and business strategy.

"This acquisition milestone is a truly exciting time for both St. Bernard and Red Condor as it creates great opportunities for growth with our shared hybrid security vision," said Lou Ryan, president and CEO at St. Bernard. "The strategic match we have found in Red Condor establishes greater breadth and depth in our hosted, hybrid and on-premises options and increases the overall value to our customers and partners. With the integration of Red Condor's carrier-grade technology and platform, we are perfectly positioned to accelerate our growth engine and work with an increasing and diversified base of customers across multiple security solutions."

As a result of the acquisition, St. Bernard will gain over 1,900 new customers as well as Red Condor's extensive ISP and MSP partner network. St. Bernard's enhanced hybrid platform allows the company to extend new and unique value to subscribers of these previously underserved markets with a full suite of easy-to-use, cost-effective and scalable security solutions.

"Red Condor is widely recognized for the simplicity and scalability of its unique hybrid offerings," continued Ryan. "The Red Condor platform and the vision behind it, dovetail perfectly with St. Bernard's primary technology offering and reinforces our key attributes of value, simplicity, and performance."

Founded in 2004, Red Condor has approximately 35 employees and is headquartered in Rohnert Park. The company's hosted and hybrid email spam filtering solutions have garnered numerous industry awards and recognition, and most recently proved to outperform competitive spam filters in an independent test of email filter accuracy by Miercom. The report not only validated Red Condor's hybrid technology offering, but also confirmed that the company had the highest block rate, zero false-positives and only one misclassified message for every 1,970 messages received during the one-week test. The complete results can be found at http://www.redcondor.com/resources/downloads/072710.miercom-report-rc.pdf

For a complete description of the terms and conditions of this acquisition, please refer to the Form 8-K issued by the Company and filed with the SEC on Aug. 3.

For further information on St. Bernard Software and its complete suite of security products, please visit www.stbernard.com. Additional information on Red Condor can be found at www.redcondor.com.

St. Bernard Software develops and markets Internet security appliances and services that empower IT professionals to effectively, efficiently and intelligently manage their enterprise's Internet-based resources. Originally founded in 1995 as a market-leader in data security with its flagship product, Open File Manager, the company is now recognized for delivering today's #1 Web filtering and security appliance, iPrism®. With millions of end users worldwide in more than 5,000 enterprises, educational institutions, SMB, and government agencies, St. Bernard strives to deliver simple, high performance solutions that offer excellent value to our customers.

Based in San Diego, St. Bernard (OTCBB: SBSW) markets its solutions through a network of value added resellers, distributors, system integrators, OEM partners and directly to end users. For more information about St. Bernard Software, visit www.stbernard.com.

For more information on Red Condor, visit www.redcondor.com.