ARCSIGHT POSITIONED IN "LEADER" QUADRANT IN NEW SECURITY INFORMATION MANAGEMENT RESEARCH REPORT

CUPERTINO, Calif. - July 1, 2005 - ArcSight, Inc., the global leader in Enterprise Security Management (ESM) software, today announced it has been positioned by Gartner, Inc. in the leaders quadrant in the "Magic Quadrant for Security Information and Event Management, 2H05[1]."

According to Gartner, "leaders" are vendors who are performing well today, have a clear vision of market direction, and are actively building competencies to sustain their leadership position in the market. The report defines a leader in the security and event management market as providing technology leadership and innovation, as well as demonstrated success in consistently satisfying customer requirements for both real-time event management and security information management in large, heterogeneous environments.

"We are pleased that Gartner has positioned ArcSight in the Leader's Quadrant. We consider placement in the leaders quadrant by Gartner as further confirmation of the success our customers have achieved by partnering with us," said Steve Sommer, Senior Vice President of Marketing and Business Development, ArcSight, Inc.

ArcSight has been recognized by a wide variety of independent sources. In June, ArcSight ESM received five-star ratings for features, performance and support, in a review from SC Magazine. In May, ArcSight became the first enterprise class security management solution to receive Common Vulnerabilities and Exposures (CVE) certification from the MITRE Corporation [and The Department of Homeland Security]. Earlier this year, ArcSight Discovery was named "Product of the Year" by SearchNetworking and ArcSight ESM received top scores in the InfoSecurity SIM Bakeoff. For more information on ArcSight awards and recognition, visit: http://www.arcsight.com/news_awards.htm.

About The Magic Quadrant

The Magic Quadrant is copyrighted June 6, 2005, by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About ArcSight

ArcSight, the recognized leader in Enterprise Security Management (ESM), provides real-time threat management and compliance reporting yielding actionable insights into your security data. By comprehensively collecting, analyzing and managing security data, ArcSight ESM enables enterprises, government organizations and managed security service providers to centrally manage information risk more efficiently. ArcSight's customer base includes leading worldwide companies across all verticals--and more than 20 of the top 30 U.S. federal agencies

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[1] Magic Quadrant for Security Information and Event Management, 2H05; published June 6, 2005 by Gartner, Inc. and authored by Mark Nicolett and Amrit T. Williams of Gartner.

For more information on ArcSight news, please contact: pr@arcsight.com