Liquid Machines and Dorsey & Whitney Offer Joint Legal and Technical Solution To Companies Facing New California Regulation Around Data

As of July 1, California Concerns Must Exert Tighter Control Over Corporate Data or Face Lawsuits

LEXINGTON, Mass. - July 2, 2003 Liquid Machines, Inc. and Dorsey & Whitney LLP today introduced a special Rapid Compliance Package for companies required to comply with a new California statute that demands close control over corporate data. According to the new California law, SB 1386, which went into effect yesterday, July 1, 2003, any company doing business in California-regardless of where that company is physically located-must report security breaches that compromise personal data of California residents that are customers, partners or employees. As a result, companies are moving quickly to impose close control and tracking of corporate data.

Liquid Machines and Dorsey & Whitney are providing a new service, called the Rapid Compliance Package, which is designed to educate clients on SB 1386, liabilities associated with non-compliance and steps to ensure compliance with the new law.

The Rapid Compliance Package includes a half-day evaluation of a company's compliance profile and a legal and technical overview, strategic guidance and instruction on how to ensure compliance with the new California law. Clients will receive a written analysis detailing its risk profile, steps to mitigate exposure and recommendations for full compliance to California SB 1386. The Rapid Compliance Package is designed to accelerate an understanding of SB 1386 within the scope of overall compliance programs managed by general counsels and by chief executive, compliance, financial or information officers.

"This week, a lot of companies woke to the risk of California SB 1386 violation," said Jim Schoonmaker, president and CEO of Liquid Machines. "This law is just the tip of the compliance iceberg--SB 1386 is a harbinger to a federal mandate around the protection and control of privacy data. We're pleased to partner with Dorsey & Whitney and provide an easy and rapid service to CEOs and other corporate leaders who are doing business in California. Rapid Compliance helps companies quickly quantify their risks and evaluate appropriate solutions to ensure their businesses are not exposed to costly lawsuits."

"The California law affects so many companies, many of whom are at risk without even knowing it," said Nick Akerman, a trade secrets and intellectual property attorney and partner at Dorsey & Whitney LLP. "Companies cannot assume that they are immune to CA SB 1386, even if they have no California offices. National and state interpretations of this law are not only likely, they are imminent. Companies must move rapidly to profile their risks, understand and quantify their exposure, and implement processes and technologies that help automate and demonstrate compliance to SB 1386 as well as federal laws involving electronic data."

Pricing and Availability
The basic Rapid Compliance Package is priced at $5,995 and available immediately. For more information, please contact Liquid Machines at 781-861-1497 ext. 126.

About Liquid Machines
Liquid Machines is a leading provider of data security software that helps enterprises comply with regulations involving the control and protection of data. Complementing other security products that create a perimeter around an enterprise, Liquid Machines leverages a unique and unprecedented combination of rights management, encryption, data provisioning and next-generation monitoring technologies-integrated into a single solution that does not affect the way in which users work. Liquid Machines solutions are used to demonstrate compliance with California SB 1386 and a variety of federal laws including the Sarbanes-Oxley Act, NASD 2711, GLBA and HIPAA. Based in Lexington, Massachusetts, Liquid Machines is privately held and is backed by Atlas Venture, Masthead Venture Partners, and Draper Fisher Jurvetson. For more information on the company, visit us at www.liquidmachines.com.

About Dorsey & Whitney, LLP
Clients have relied on Dorsey since 1912 as a valued, cutting-edge business partner. With over 700 lawyers in 20 locations in the US, Canada, Europe and Asia, Dorsey provides an integrated, proactive approach to its clients' legal and business needs. Dorsey represents a number of the world's most successful Fortune 500 companies from a variety of disciplines including leaders in the financial services, investment banking, life sciences, securities, technology and energy sectors, as well as nonprofit and government entities. For more information on the firm, visit www.dorsey.com.



For More Information:

Ed Harrison
fama PR
617-758-4144
liquidmachines@famapr.com