Exobox Technologies Corp. CEO Interview: Kevin Regan

• On 12:13 pm EDT, Tuesday August 25, 2009

67 WALL STREET, New York - August 25, 2009 - The Wall Street Transcript has just published its Application Software Report offering a timely review of the sector to serious investors and industry executives. This 111 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Upgrade Cycle for Application Software -- Software as a Service -- Cloud Computing -- Virtualization Software -- Government Software Sales Cycle -- Demise of Unix -- Installed Base of Microsoft Software -- Installed Base of Oracle Software

Companies include: Microsoft (MSFT); VMware (VMW); Oracle (ORCL); RedHat (RHAT); Sybase (SY); Google (GOOG); Symantec (SYMC); Avocent (AVCT); Novell (NOVL); SolarWinds (SWI);CommVault (CVLT); Data Domain (DDUP); IBM (IBM); SPSS Inc. (SPSS); Steel Vault (SVUL); StrikeForce Technologies (SFOR); Jagged Peak (JGPK); Lyris, Inc. (LYRI); Saba Software, Inc. (SABA); TTI Team Telecom International (TTIL); AMICAS, Inc. (AMCS); Sonic Solutions (SNIC); BluePhoenix Solutions Ltd (BPHX); ArcSight, Inc. (ARST); Etelo, Inc. (ETLO); Pansoft Company Limited (PSOF); Exobox Technologies Corp. (EXBX); PROS Holdings, Inc. (PRO); Proginet Corporation (PFGF); Versant (VSNT); Wyndstorm Corp. (WYND); China Digital TV Holding Co. (STV); QAD Inc. (QADI); Magic Software Enterprises, Inc. (MGIC); Wizzard Software Corp. (WZE); SXC Health Solutions Corp. (SXCI); Telvent (TLVT).

In the following brief excerpt from the 111 page report, Kevin Regan, CEO of Exobox Technologies Corp., discusses the company, the outlook for the sector and for investors.

TWST: Would you start off with a short history and introduction to your company, Exobox?

Mr. Regan: Exobox was founded in 2002 as a security software company. In 2005, the company went public and up until about 2008, most of the company's focus has been on R&D efforts and patenting technology efforts. A private offering of equity was completed in January of 2008, and then we really began full-scale development operations at that time. Our focus right now is still in the security segment. Under that broad umbrella, we are really focused on the information risk management area, including sub-segments like data leak prevention, content monitoring and filtering areas - that's the primary focus of our initial product group.

TWST: How long have your products been on the marketplace?

Mr. Regan: We released our first product, ExoDetect, on June 30, 2009, about a month ago. It has been very well received by the analyst community and getting a lot of traction with some very large name brand customers. It has made us very excited about the prospects.

TWST: How different is Exobox from the products that are out there now? Who are your competitors?

Mr. Regan: The competition is varied. For our initial product, ExoDetect, quite frankly, we don't know a competitor out there that has an automated product like ours. There are people who provide the same type of service on a manual basis. But it will take them weeks to do what our products do automated in a matter of minutes. However, it falls under a broader landscape of information risk management and compliance-related products. So there are many different companies that play in that area, but none in our sophisticated niche at this time.

TWST: How well does your product integrate with your clients' existing information systems?

Mr. Regan: The beauty of our products right now is that as a software as a service delivery model, it fits in perfectly, and it is not a large integration process and application that needs to be installed on thousands of end points. It takes a browser, a user name and a password to get online and begin using our service. Right now, most of the products focusing on managing an enterprise's information are concentrated internally in trying to keep the information from getting out. But invariably it does get out, and companies need to know what is out there and what risks are involved with that information being out there, and then provide them with the forensics on discovering how it got out and ameliorating the situation.

TWST: How do you expect the information security marketplace to change over the next two to three years? Do you observe any specific trends, any new developments that we need to be aware of?

Mr. Regan: Yes, I think there are two or three main areas of development right now. The increase in the software as a service (SaaS) delivery model is becoming more and more accepted in corporate enterprises. In line with this is that companies are becoming more comfortable with the subscription-based licensing arrangements, where their payment is in essence like a pay per play. They are paying as they use the product, rather than buying a license that lasts for many years. Corporate America is beginning to accept that more and more, and you see that as evidenced in some very large corporations that were traditional licensing models. Oracle and SAP are now beginning SaaS initiatives for some of their product lines. The other area I think that is really going to affect our specific niche is the ever-increasing government and regulatory compliance that companies have to adhere to, whether it's the financial industry with PCI, the healthcare industry with HIPAA, or government contracting industry with GLBA or Sarbanes-Oxley for any public company. On a regular basis, companies are being forced to demonstrate control and protection of their sensitive information within their enterprise. That's a trend that will continue, which is linked well to our product line.

TWST: What are the greatest opportunities for Exobox over the next several years?

Mr. Regan: I think we have a unique niche that is not being served right now. So generating significant market penetration with our products is both an opportunity, but also our challenge as well. It is our first product and so we are not a household or corporate name brand yet. But generating the market penetration, getting our name out with our products and establishing ourselves as effectively a subject matter expert in information risk management is the real opportunity.

TWST: What are your specific goals for the company over the next several years in terms of a market position and growth?

Mr. Regan: With the release of ExoDetect, our short-term goal is market penetration and getting that product out in as many customers' hands as possible. Over the long term, I am focusing our team on staying ahead of the technology curve and creating innovative products that meet a paying point that businesses are experiencing right now. We will be seeking to identify needs not being filled within the realm of our business niche, security software and information risk management. Also, we will find that paying point and identify innovative products that provide solutions for them. That's the long-term goal for the business.

TWST: How strong financially is Exobox at this point? Do you have resources, capital, and cash flow to fund your opportunities?

Mr. Regan: We've been in a continuous capital raising mode. With the startup with our first product right now, cash is something that we are always looking for and we are raising with our investors. Fortunately, as a public company, we have approximately 2,000 shareholders right now that are very active and very willing to continue to invest dollars in Exobox. Our need for capital will lessen in time as we start generating greater revenues with the release of our first product. But capital raising is currently a significant part of my job.

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