Research and Growth Consulting Firm Recognizes Company for Strong Annual Growth Rates, Unparalleled Scalability, High Reliability and Insightful Delivery Model

REDWOOD CITY, Calif.-15 September, 2008 - Qualys®, Inc., the leading provider of on demand security risk and compliance management solutions, today announced it is the recipient of the Frost & Sullivan Global Growth Strategy Leadership Award. The Frost & Sullivan award honors Qualys for its exceptional long-term growth strategy and credits the Company as “a crucial force in furthering the acceptance of Software-as-a-Service (SaaS) products.”

"As the market shows signs of maturity, Qualys’ ability to increase market share, grow at consistently high rates and retain an astoundingly high percentage of its impressive customer base solidifies its leading role in the vulnerability management market. In a million-dollar breach reality, the reliability of QualysGuard and the appeal of its SaaS delivery model sets the company apart in a very highly-competitive market,” says Chris Rodriguez, research analyst with Frost & Sullivan. “Due to impressive year-over-year growth rates, Qualys is the undisputed recipient of the 2008 Global Growth Strategy Leadership Award.”

The research and growth consulting firm measured notable growth accomplishments in 2007 which include:

• A 98 percent renewal rate with enterprise customers
• 40 percent revenue growth in 2007 compared to the industry average growth rate of 18.6 percent
• Significant increase in market share to 13.3 percent of the world vulnerability assessment products market
• Consistently high growth rates, year-over-year from 2004 to 2007

Frost & Sullivan also applauds Qualys’ SaaS model, noting that, “QualysGuard requires no capital investment, long-term commitments or infrastructure to deploy or maintain. QualysGuard boasts unparalleled scalability and high reliability and availability rates. This adds tremendous value for Qualys customers and potential customers with tightening budgets and approaching deadlines.”

“This award signifies the fact that the software-as-a-service market has come full circle. During the economic recession earlier this decade, SaaS companies were questioned about the viability of their model as industry experts, investors and some enterprises discounted the impact of enterprise applications delivered over the Internet,” says Philippe Courtot, CEO and chairman of Qualys. “During the current economic downturn, SaaS is seen as an IT budget savior providing powerful functionality and scalability to large enterprises, while dramatically reducing costs compared to enterprise software. Thanks to the visionary adoption of our early customers and the more recent support of thousands of new customers and partners around the world, security-as-a-service has become the delivery model for vulnerability management.”

Qualys has hit a number of milestones in the past 12 months that have contributed to its growth and leadership in the security risk and compliance management market. This past year, Qualys introduced the first SaaS solution to bring security and compliance together with the QualysGuard Security and Compliance Suite. The company also reached several customer adoption milestones, including passing more than 3,500 total active subscribers worldwide.

The Frost & Sullivan award continues an avalanche of industry praise for Qualys by recognizing the company for its commitment to its customers and resulting business success. The company was recently named to Inc. Magazine’s 5,000 Fastest Growing Companies list, placing 25th among all security companies. The company also was voted the 2008 Readers’ Choice Gold Award winner, by readers of Information Security™ magazine and SearchSecurity.com™ in the vulnerability management category, while its flagship product, QualysGuard was voted Best Audit and Vulnerability Solution for the second consecutive year by the readers of SC Magazine.