20.05.2008 12:00:00

Tumbleweed Poised to Benefit From Russia's Tech Boom With Addition of New Channel Partner

Tumbleweed® Communications Corp. (NASDAQ:TMWD), a leader in managed file transfer and email security, today announced continued expansion in the EMEA region with the signing of a new premier distributor in Russia. Rainbow Technologies has joined Tumbleweed’s partner alliance to help meet the demand across Russian private and government sectors for innovative, reliable and easy-to-use secure content delivery solutions. "Investment in IT infrastructure has seen double-digit growth in parts of Central and Eastern Europe – and now that infrastructure is more mature, IT organizations will predictably turn their attention to security,” said Craig Whitney, Tumbleweed Managing Director for EMEA, "Rainbow Technologies has been at the forefront of fulfilling demand and is a trusted partner to many private enterprises and governmental offices. We see them as a strategic partner as we enter this region of Europe.” The current business climate in Russia makes this a particularly opportune time for such a partnership. By all counts, Russia has seen enormous IT growth since 2002, and Esther Dyson, a well known U.S. thought leader on emerging digital technologies, has publicly wagered that by 2012, major American newspapers will refer to Russia as "the world leader in software development.” And if Russia’s huge presence at CeBIT in 2007 was anything to go by – over 150 major Russian IT exhibitors spanning consulting, outsourcing and software – the hype may be real. This new maturity in Russia’s IT space makes it ripe for the next piece of the puzzle – IT security, and an emerging demand in the government sector for IT products and solutions. Tumbleweed SecureTransport™ is a leading Managed File Transfer solution that is uniquely positioned to benefit from this new phase of growth in Russia's IT sector. Initial MFT revenue opportunities are expected to be in Russia’s commercial sector across businesses of every size. Meanwhile, in the banking and government sectors – where regulation is heavy and encryption guidelines strict – Rainbow Technology is aggressively pursuing the required certifications. "We see tremendous opportunity with Tumbleweed – in particular with their managed file transfer product, SecureTransport,” said Yuriy Ivanovich Kryukov, CEO of Rainbow Technologies. "As organizations increasingly look for ways to safeguard valuable business content, SecureTransport provides an effective, easy-to-use product that enables greater control of business data. There’s no other product quite like it available in Russia today.” Safe Harbor Statement Tumbleweed cautions that forward-looking statements contained in this press release are based on plans and expectations as of the date of the press release, and that a number of factors could cause the actual results to differ materially from the guidance given at this time. These factors are described in the Safe Harbor statement below. Except for the historical information contained herein, the matters discussed in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected, particularly with respect to the growth of IT spending or Tumbleweed’s business in Russia, as well as Tumbleweed’s relationship with Rainbow Technologies. In some cases, forward-looking statements can be identified by terminology such as "may,” "will,” "should,” "potential,” "continue,” "expects,” "anticipates,” "intends,” "plans,” "believes,” "estimates,” and similar expressions. For further cautions about the risks of investing in Tumbleweed, we refer you to the documents Tumbleweed files from time to time with the Securities and Exchange Commission, particularly Tumbleweed's Form 10-K filed March 17, 2008 and Tumbleweed's Form 10-Q filed May 12, 2008. Tumbleweed assumes no obligation to update information contained in this press release. Although this release may remain available on Tumbleweed’s website or elsewhere, its continued availability does not indicate that Tumbleweed is reaffirming or confirming any of the information contained herein. About Tumbleweed Tumbleweed Communications Corp. (NASDAQ:TMWD), an industry leader in managed file transfer and email security, provides enterprise-class solutions to organisations of all sizes. Tumbleweed’s innovative products enable organisations to effectively manage and protect business-critical Internet communications, with capabilities that span secure file transfer, encryption, data loss prevention, and email security. Tumbleweed has more than 3,200 customers worldwide, including blue-chip companies across an array of industries such as technology, retail, finance, healthcare, manufacturing, consumer packaged goods, telecom, energy, and the U.S. Government. The world’s most security conscious organisations rely upon Tumbleweed technology including Bank of America Securities, JP Morgan Chase & Co., the U.S. Food and Drug Administration, and the U.S. Department of Defense. Our award-winning products build on 15 years of R&D and 27 security patents in the U.S. alone – many of which are licensed by other security vendors. More information can be found at www.tumbleweed.com. Tumbleweed and SecureTransport are either registered trademarks or trademarks of Tumbleweed Communications Corp. in the United States and/or other countries. All other trademarks are the property of their respective owners.

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