EXHIBIT 99.1
[IPASS LOGO] NEWS RELEASE
EDITORIAL CONTACT:
John Sidline Bryan Parker
iPass Public Relations iPass Investor Relations
650-232-4112 650-232-4170
jsidline@ipass.com bparker@ipass.com
IPASS TO ACQUIRE MOBILE AUTOMATION
ADDING MOBILE DEVICE MANAGEMENT TO POLICY ORCHESTRATION
HELPS MAKE HARD-TO-MANAGE ENTERPRISE COMPUTERS EASY-TO-TRUST
REDWOOD SHORES, CALIF. - OCTOBER 26, 2004 - As another step in the company's
Policy Orchestration initiative, iPass Inc. (NASDAQ: IPAS) announced today that
it has signed a definitive agreement to acquire Mobile Automation in an all-cash
transaction valued at approximately $20 million. Over the last seven years,
Mobile Automation, a privately-held Westlake Village, Calif. company, has become
a recognized leader in solutions that help enterprise IT departments protect and
manage their remote and mobile devices such as computers and personal data
assistants (PDAs). Combining the Mobile Automation technology with the iPass
secure connectivity platform is expected to help iPass protect "at-risk" devices
whenever they are connected to the Internet. The acquisition is subject to
certain specified closing conditions.
Mobile Automation has developed a powerful suite of Web-based services that
allow enterprise IT departments to better manage remote and mobile devices
throughout their lifecycle, including security assessment, software deployment
and update, and IT support. These services are built to be easy to deploy and
use, and are optimized for mobile connectivity environments. Designed to
maximize both end-user productivity and network security, Mobile Automation
services let IT departments set policies and priorities for software updates to
ensure that computers receive required software and operating system updates
without needless impact on the user experience.
iPass Policy Orchestration is a layer of software intelligence built into the
iPass connectivity platform that enables iPass services to control and enforce
the use of enterprise policy-based security systems. iPass expects the
integration of Mobile Automation's capabilities, recently acquired Safe3w device
"fingerprinting" technology and iPass Policy Orchestration technology to help IT
departments ensure that their remote and mobile PCs are properly protected over
every Internet connection, and that only trusted devices are given access to
corporate networks.
"Mobile computers and PDAs are the weakest links in the enterprise security
chain," said Ken Denman, iPass CEO. "Corporations need to keep these devices
continuously protected. Current methods only protect devices once they connect
to the corporate network, which exposes them and the corporate network to a
variety of dangers that leave the enterprise open to competitive, financial and
legal risks. iPass services integrated with Mobile Automation technology will
minimize these dangers in a way no other company can today."
The analyst firm IDC sees the worldwide patch management business as a $2.4
billion industry in 2003 growing to $4.1 billion by 2008. Mobile device
management is projected to be the fastest growing segment of this market
according to IDC, eclipsing $900 million in revenue by 2008 with a 49 percent
compounded annual growth rate over the next four years.
IPASS TO ACQUIRE MOBILE AUTOMATION PAGE 2
Enterprise IT departments are increasingly seeking services to provide assurance
that those remote and mobile devices holding valuable and sensitive corporate
information assets are always protected when connected to the Internet. Through
a pre-existing licensing agreement, iPass has been working to tightly integrate
Mobile Automation's patented technology together with its Policy Orchestration
capabilities.
This combination is expected to give iPass customers simple yet powerful mobile
device management capabilities to:
o Streamline and automate patch management - determining what vendor
patches and upgrades apply to a particular user group and creating
"packages" for distribution to endpoint computers. Mobile Automation
partners with Shavlik, the recognized industry leader in security
patch management for Windows environments.
o Deliver patches to remote and mobile devices efficiently - iPass will
be able to automatically assess and deploy updates to corporate PCs as
soon as they access the Internet. Optimized for mobile computers,
these services enhance performance over lower-speed and less reliable
Internet connections such as dial-up and wireless networks.
o Monitor patch levels - gain visibility into what patch and security
software versions are deployed across the often hard-to-manage remote
and mobile computing universe within an enterprise.
Automation has a track record of proven success with approximately $4 million in
revenues over the last four quarters, a list of well-known customers, and strong
consistent growth over the past three years. iPass expects to make services
based on Mobile Automation technology available this quarter to its corporate
customers directly and through its diverse array of channel partners.
For more information on the iPass acquisition of Mobile Automation, read our FAQ
document online at http://www.ipass.com/company/company_mobileautomation.html.
ABOUT IPASS
iPass Inc. (NASDAQ: IPAS) delivers simple, secure and manageable enterprise
mobility services, maximizing the productivity of workers as they move between
office, home and remote locations. iPass security services - based on unique
Policy Orchestration capabilities - close the gaps in protecting computers,
network assets, user identities and data whenever users connect over the
Internet. iPass connectivity services utilize the iPass global virtual network,
a unified network of hundreds of dial-up, wireless, and broadband providers in
over 150 countries. iPass services are the choice of hundreds of Global 2000
corporations including Ford Motor Company, Mellon Financial and H.J. Heinz
Company. Founded in 1996, iPass is headquartered in Redwood Shores, Calif., with
offices throughout North America, Europe and Asia Pacific. For more information
visit www.ipass.com.
iPass(R) is a registered trademark of iPass Inc.
The statements in this press release relating to the benefits iPass expects it
and its customers will obtain from iPass' acquisition of Mobile Automation, the
timing of iPass' integration of the Mobile Automation technology into iPass'
service offerings, and the new services iPass expects to deliver based on this
new technology, are forward-looking statements that are subject to risks and
uncertainties that could cause results to be materially different than
expectations. Such risks and uncertainties include, but are not limited to: the
risk that the acquisition of Mobile
IPASS TO ACQUIRE MOBILE AUTOMATION PAGE 3
Automation may not occur or may be delayed due to the failure to satisfy the
conditions necessary to close the transaction; the risk that iPass may encounter
unexpected difficulties in integrating the Mobile Automation assessment,
deployment and endpoint security technology into iPass' technology which could
delay or prevent the offering of services based on the Mobile Automation
technology; the risk that the parties may be unable to achieve expected
synergies and operating efficiencies through the merger within the expected
time-frames or at all;, the risk that security breaches may occur despite the
use of this endpoint security technology by innovative hackers that develop new
methods of avoiding security software; and the risk that the rate of adoption by
enterprises of such technology will not be as iPass anticipates, which if slow
would reduce or eliminate the realization of the benefits of this anticipated
new product. Detailed information about other potential factors that could
affect iPass' business, financial condition and results of operations is
included in the iPass' Quarterly Report on Form 10-Q under the caption "Factors
Affecting Operating Results" in "Management's Discussion and Analysis of
Financial Conditions and Results of Operations," filed with the Securities and
Exchange Commission (the "SEC") on August 16, 2004 and available at the SEC's
website at www.sec.gov. The information in this press release speaks only as of
the date hereof and iPass assumes no obligation to update the information in
this press release, except as may be required by law.
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