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ArcSight Positioned in the Leaders Quadrant of the 2010 Security Information and Event Management (SIEM) Magic Quadrant

Evaluation Based on Completeness of Vision and Ability to Execute

CUPERTINO, CA – May 26, 2010 – ArcSight, Inc. (NASDAQ: ARST), a leading global provider of security and compliance management solutions that protect businesses and government agencies, today announced that Gartner, Inc. has positioned the company in the leaders quadrant of the 2010 Magic Quadrant for Security Information and Event Management (SIEM).  The report, written by analysts Mark Nicolett and Kelly Kavanagh, was published on May 13, 2010.

According to the report, the 2010 Magic Quadrant for SIEM “evaluates technology providers with respect to the most-common technology selection scenario: an SIEM project that is funded to resolve a compliance reporting issue, but with secondary requirements for effective threat monitoring and SEM.” The report also says, “Broad adoption of SIEM technology is driven by compliance and security needs. New use cases are emerging in areas such as application activity monitoring.” 

“We believe managing enterprise threat and risk is becoming a high priority for both public and private organizations, be they large or small,” said Tom Reilly, president and chief executive officer of ArcSight.  “We’re honored to be recognized as a leader in the magic quadrant. We feel it confirms our commitment to creating technology solutions that combat cyber crime and mitigate cyber threat and risk.”

The ArcSight SIEM Platform helps safeguard businesses by giving users visibility into activity across the IT infrastructure: external threats such as malware and hackers, internal threats such as data breaches and fraud, and compliance pressures from failed audits. The ArcSight SIEM Platform is comprised of integrated products for collecting, processing and assessing security and risk event information. This Platform enables rapid identification, prioritization and response to policy breaches, cyber-security attacks and insider threats, and is in use by some of the most demanding private and public organizations in the world.

To view the entire Gartner Magic Quadrant report, compliments of ArcSight, please visit: http://www.arcsight.com/library/download/GartnerMQ/

About the Magic Quadrant

The Magic Quadrant is copyrighted 2010 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 (NASDAQ: ARST) is a leading global provider of security and compliance management solutions that protect businesses and government agencies. ArcSight identifies, assesses, and mitigates both internal and external cyber threats and risks across the organization for activities associated with critical assets and processes. With the market-leading ArcSight SIEM Platform, organizations can proactively safeguard their assets, comply with corporate and regulatory policy and control the risks associated with cyber-theft, cyber-fraud, cyber-warfare and cyber-espionage. For more information, visit www.arcsight.com. (ARST-IR)

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to ArcSight’s belief that managing enterprise threat and risk is becoming a high priority for large or small public and private organizations. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements include the risk that the opportunity for SIEM and similar solutions may decline or may not grow (or may not grow at levels anticipated by ArcSight), and other risks detailed under the caption “Risk Factors” in the ArcSight Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, or the SEC, on March 10, 2010 and the company’s other filings with the SEC.  You can obtain copies of the company’s Quarterly Report on Form 10-Q and its other SEC filings on the SEC’s website at www.sec.gov. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

© 2010 ArcSight, Inc. All rights reserved. ArcSight and the ArcSight logo are trademarks of ArcSight, Inc.

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