Santa Clara, Calif. - May 17, 2000 - Perfecto Technologies, the established leader in automated Web application control and security software, today announced that it has been recognized by UPSIDE magazine as one of its Hot 100 Private Companies. Selected on the basis of excellence and innovation by UPSIDE editors and an advisory panel of venture capitalists, financial analysts and market researchers, Perfecto earned its award in the Internet infrastructure category.

"We are extremely proud to have been recognized by UPSIDE magazine," said Peggy Weigle, CEO of Perfecto. "We are committed to consistently providing eBusinesses the means to effectively strengthen the security of their Web applications. To receive recognition from one of that industry’s most notable publications is a clear indication of our success."

"We evaluated hundreds of great companies spanning a broad range of Internet-related market segments, and are pleased to recognize Perfecto among this year’s winners," said David Bunnell, UPSIDE CEO and editor. "We look forward to watching the progress of all of the UPSIDE Hot 100 Award winners over the next year or so, and hope they continue being newsmakers as they move from being privately held to possibly becoming publicly traded companies."

Perfecto was one of only 100 companies singled out by UPSIDE editors and the advisory panel. More than 1000 companies were nominated this year for the UPSIDE Hot 100 Awards, which were judged on the company’s technological achievements, customer acceptance of products or services, financial performance, industry partnerships, financial backing, management savvy and marketing. The complete list of the UPSIDE Hot 100 Award winners is published in the June issue of UPSIDE, and can be found
online at http://www.upsidetoday.com.

Perfecto’s flagship product, AppShield, is the first automated solution capable of protecting eBusiness applications from malicious hacker attacks. Based on Perfecto’s innovative Policy Recognition Engine and Adaptive Reduction Technology, AppShield makes it nearly impossible for hackers to take advantage of common security loopholes; either in the application code or within widely used third-party products such as web servers. AppShield can be installed quickly, needs little configuration and does not require modification to either existing eBusiness applications or
third-party software.

About Perfecto Technologies
Founded in 1997 and headquartered in Santa Clara, Calif., Perfecto Technologies is the leader in Web Application Security Management software. AppShield, Perfecto Technologies flagship product, is the first to provide extreme security for customer-facing applications in dynamic Web site environments. Perfecto Technologies has customers in many sectors including, banking, e-tailing, finance, government and healthcare. Privately held, Perfecto Technologies is funded by blue-chip venture capital firms and industry leaders, including Sequoia Capital, Walden and Intel Corporation. More information about Perfecto Technologies may be obtained by visiting the Company's Web site at www.perfectotech.com or by calling the Company directly at (408) 855-9500.

For Immediate Release
Contact:

Kevin Pedraja
Sterling Communications
(408) 441-4100
[email protected]