Japanese Company Invests in Swedish High Tech Company, Ingate Systems

Stockholm, February 17, 2003 - Swedish Ingate Systems AB receives 2.5 million USD in new capital from Japanese systems integrator, Bell Net Corp. Bell Net, who is a customer of Ingate, has recognised that Ingate’s SIP-capable firewalls and SIParators have a unique position in a fast growing market.

"This investment proves that our mission to develop world leading SIP-capable firewalls and SIParators for the corporate market is right. Ingate offers a series of security products that enables Internet based person-to-person communication globally as well as to the end-users on the local network. Asia is a very important market for us and we are extremely pleased to be able to welcome Bell Net Corp. as a shareholder in Ingate. With them as shareholder we will strengthen our position in the Asian market," says Olle Westerberg, CEO of Ingate.

The investment gives Bell Net Corp just over ten per cent ownership in Ingate. The investment has been under discussion since Bell Net, through industry contacts, heard that Ingate is the world leader in designing and selling SIP-capable enterprise firewalls. Ingate’s products ensure complete security of the enterprise data network while at the same time allowing SIP-based realtime communications like Voice over IP (VoIP). SIP is an Internet protocol that is enabling widespread adoption of realtime communications, like Instant Messaging, Presence and Voice over IP over the Internet, which is anticipated to be the next major application on the Internet, after e-mail and the Worldwide Web.

"We see a large potential for Ingate’s products. Many of our existing customers are already today using them and we are convinced that the market will grow rapidly here in Japan," says Yukio Shimada, COO, Bell Net Corp.

There were many foreign investors on the Swedish market a few years ago, but still today Swedish high tech innovations attract venture capital.

"We have noticed an interest from foreign companies and venture capitalists, not the least from Japan, to invest in Swedish high-tech ICT-ventures. They are attracted by Sweden's unique innovation power and cutting-edge competence within ICT. Besides providing capital to the Swedish ventures, foreign investors usually add value in terms of competence and networking to commercialize and expand internationally. Ingate is an excellent example of this," says Karin Ruiz, Head of IT Sweden Project at ISA, Invest in Sweden Agency. ISA is a part of the Foreign Office and works to increase foreign investments in Sweden.

Ingate will use the investment for further development of its product lines and to market the products more actively in Asia, North America and Sweden.

"Our main marketing force is our customers. Most people who turn to us have heard about us from people they trust and that tells us that we know what we are doing. With this investment we will be able to become more active in the market," says Olle Westerberg, CEO at Ingate.

For more information and pictures, please contact:

Steve Johnson, President, Ingate Inc
Phone: 1-603-883-6569
E-mail: steve@ingate.com

Hélène Rönnmark, Marketing Director, Ingate Systems AB
Phone: +46 - 8 - 600 77 56
Mobile: +46 - 733 - 58 31 01
E-mail: helene@ingate.com

About Ingate Systems

Ingate Systems produces and sells the world's first SIP-capable enterprise firewalls and SIParators, a device that connects to an existing network firewall to seamlessly enable the traversal of SIP communications. Ingate firewalls offer complete firewall protection while allowing the use of SIP-based communications services.

Ingate is located in Stockholm and Linköping, Sweden and its wholly owned subsidiary, Ingate Systems Inc., is located in Hollis, New Hampshire. For more information on Ingate Systems, visit www.ingate.com.

About Bell Net Corp (www.bnc.co.jp)

Bell Net Corp is a leading systems integrator in Tokyo, Japan. Bell Net offers the whole value chain from analysis to installation and support. Many of Bell Nets Clients are operators and service providers in the Japanese market.