SonicWALL, Inc. - Communications Equipment

(408) 745-9600

1143 Borregas Avenue
Sunnyvale, California 94089
www.sonicwall.com

Business Description

SonicWALL designs, develops, manufactures and sells integrated network security, mobility, and productivity solutions for small to medium size networks used in enterprises, e-commerce, education, healthcare, retail point-of-sale, and government markets. Our Internet security infrastructure products are designed to provide secure Internet access to both wired and wireless broadband customers, enable secure Internet-based connectivity for distributed organizations, and process secure transactions for enterprises and service providers. We believe our access security appliances provide high-performance, robust, reliable, easy-to-use and affordable Internet firewall security and virtual private networking (“VPN”) functionalities. Additionally, our Internet security products are designed to make our customers more productive and more mobile, while still maintaining a high level of security. As of December 31, 2004, we have sold more than 600,000 of our Internet security appliances worldwide. We also sell value-added security application services for our security appliances, including content filtering, anti-virus protection and intrusion prevention on an annual subscription basis. In addition, we license software packages such as our Global Management System (“GMS”) and our Global VPN Client. Our Global Management System enables distributed enterprises and service providers to manage and monitor a large number of SonicWALL Internet security appliances and deploy our security services from a central location to reduce staffing requirements, speed deployment and lower costs. Our Global VPN Client provides mobile users with a simple, easy-to-use solution for securely accessing the network. We also sell transaction security products designed to provide high-performance Secure Sockets Layer (“SSL”) acceleration and offloading, enabling service providers and enterprises to deploy e-commerce and web-based applications without degrading web server performance. Our products and services are primarily sold, and our software licensed, on an indirect basis through two-tiered distribution, first to distributors and then to value-added resellers, who then sell to end customers.