INGATE RECEIVES $5.8 MILLION IN FUNDING;
EMBARKS ON MAJOR BUSINESS EXPANSION

STOCKHOLM, May 17, 2004 - Ingate Systems AB (www.ingate.com), which produces and sells the world's only fully Session Initiation Protocol (SIP)-capable enterprise firewalls, has received approximately $5.8 million in funding. The funding initiates a major business expansion for the company, which includes several key new hires which will focus on development, sales and strategic partner support.

The funds come from Bell Net Corp., a leading systems integrator in Tokyo, Japan. Already an investor in Ingate, Bell Net's follow-up investment increases their ownership of the company.

The new hires will expand Ingate staff by 30%, including the addition of several senior product development, strategic partner and global sales resources.

"Interest in the VoIP market is at an all-time high," said Olle Westerberg, Chief Executive Officer, Ingate Systems. "Bell Net's investment enables us to address this interest more actively around the globe, and continue the tremendous momentum that has made us a leader in next-generation firewall technology."

About Ingate® Systems

A world leader in next generation firewall technology, Ingate® Systems produces and sells the world's only fully SIP-capable enterprise firewalls and the Ingate SIParator®, a device that connects to an existing network firewall to seamlessly enable the traversal of SIP communications and winner of Internet Telephony magazine's Product of the Year Award in 2002 and again in 2003. Ingate Systems has a long history of developing secure communications technology and today offers enterprises unprecedented value and ability to develop SIP-based, person-to-person real-time communications. Ingate's security products currently protect the networks of retail companies, financial institutions, industrial firms, government agencies and small-to-large enterprises throughout Europe, Asia and North America. Majority-owned by Intertex Data AB and BellNet Corp, Ingate Systems AB is located in Stockholm and Linköping, Sweden. Its wholly-owned subsidiary, Ingate Systems Inc., is located in Hollis, New Hampshire. For more information on Ingate Systems, visit www.ingate.com.

For more information, please contact:

Johan Terve, Vice President, Marketing & Sales, Ingate Systems
+ 46 8 600 77 56
johan@ingate.com

Hillary Call, Public Relations Manager, Ingate Systems
(917) 414-9262
hillary@ingate.com