Thursday July 2, 9:04 am Eastern Time
Company Press Release
CyberGuard Corporation Exploring Strategic Alternatives For Galaxy Search Engine
Company to Consult with H&Q on Potential Sale or Spin Off of Search Engine Acquired as Part of Tradewave Transaction
FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--July 2, 1998-- CyberGuard Corporation (NASDAQ:CYBG - news), a leading provider of enterprise security and electronic commerce solutions, today announced that it is consulting with Hambrecht & Quist regarding strategic alternatives for the Galaxy search engine (http://galaxy.tradewave.com). These alternatives include the possible sale or spin-off of Galaxy which CyberGuard acquired as part of the TradeWave transaction in April 1997.
Galaxy was originally developed based upon research conducted at the Microelectronics and Computer Technology Consortium (MCC) and was one of the first search engines and directories on the Internet, predating YAHOO and Excite. Because of its early-to-market position, Galaxy was incorporated into the America-On-Line (AOL) home page and included in advertising when Internet access was first offered to AOL customers. Galaxy's directory structure or ''ontology'' is particularly well suited for the general research community and specifically to the medical communities. Presently, Galaxy receives between 250,000 and 400,000 ''hits'' per day which represents approximately 50,000 unique user visits to the site.
''CyberGuard continues to manage its portfolio of assets in a manner which focuses on optimizing shareholder value,'' commented Robert L. Carberry, CyberGuard Chairman and CEO. ''As the Internet continues to grow and the search engine plays an increasingly important role from both an information and advertising perspective, the exact value of Galaxy is not known. We have asked H&Q to consult with the Company regarding the potential sale or spin off of Galaxy.''
The Company indicated that one scenario may involve CyberGuard contributing to operating the Galaxy search engine and related intellectual property with other strategic and financial partners contributing forms of support. Such a scenario would allow CyberGuard a continued equity participation in any future success. The Company gave no indication of the possible timeframe or possibility for successfully forming such a transaction.
About CyberGuard
CyberGuard Corporation (NASDAQ:CYBG - news) is a leading provider of enterprise security and electronic commerce solutions to Fortune 1000 companies and governments worldwide. CyberGuard's award winning, industrial-strength firewall and certificate authority products and services protect the integrity of data and applications from hackers and digital thieves. CyberGuard's newly acquired professional services subsidiary, Arca Systems, provides unparalleled security consulting expertise and conducts independent trusted product evaluations on behalf of the U.S. Government's National Security Agency. The company has US headquarters in Ft. Lauderdale, Florida and branch offices worldwide. More information on CyberGuard Corporation can be found at cyberguard.com and tradewave.com and arca.com
CyberGuard Firewall is a trademark of CyberGuard Corporation. All other trademarks are property of their respective owners.
NOTE TO EDITORS: More information on CyberGuard products and services is available through an email request to info@mail.cybg.com and from CyberGuard's web site at www.cyberguardcorp.com. For copies of recent press releases via fax, at no charge, call 800/344-4297.
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Contact:
Reader Contacts:
CyberGuard Corporation
Lisa Thornhill - Press and Investor Relations
(954) 958-3904
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