News Release

Sun, Cisco and Pilot Announce Alliance to Provide Industry's First Secure WAN-to-VPN Service for Corporate Networks

Leading Suppliers of Internet Solutions Join Forces to Drive
Mar 24, 1999

Leading Suppliers of Internet Solutions Join Forces to Drive Built-in Security between Internet Connections and Corporate WANs

ALAMEDA, Calif. -- March 24, 1999 -- Pilot Network Services, Inc. (NASDAQ: PILT), the Security Utility pioneer, Sun Microsystems, Inc. (NASDAQ: SUNW) and Cisco Systems, Inc. (NASDAQ: CSCO) today announced a joint marketing and development alliance that delivers a new solution enabling corporations to establish secure Virtual Private Network (VPN)/extranet connections via their Wide-Area Networks (WANs). Because many of today's corporations with Internet connections are reluctant to open up their corporate networks via the Internet due to security concerns, Cisco, Sun and Pilot have agreed to join forces to provide comprehensive security solutions to resolve these business-critical issues.

Under the alliance, Sun, Cisco and Pilot have combined their world-class technology, services and experience to enable enterprises to connect their corporate legacy WANs to customer and partner extranets through highly secure Internet VPNs. One of the first products of this collaboration is Pilot Corporate Partner Networking (Pilot CPN). Available today, Pilot CPN is a secure VPN/extranet service that connects directly to a company's WAN and to its mobile telecommuters, providing the built-in protection of Pilot's revolutionary Security Utility service. By using the Pilot CPN service, corporations in the United States and Europe are able to connect to one of Pilot's seven ATM-linked Network Security Centers, with dynamic security architectures plus 24x7 monitoring and maintenance.

"Security must extend across an entire network to be effective," said Larry Lang, Cisco vice president of service provider marketing. "This relationship between Pilot, Sun and Cisco offers enterprise customers a Wide-Area Networking service that implements corporate security policies end-to-end in support of e-commerce and other critical business initiatives. Also, because the Pilot CPN service is a qualified Cisco Powered Network service, corporations can have confidence in its security, reliability, and interoperability with their existing networking equipment."

"This alliance is important because it allows corporations to build on current network infrastructures while also enabling rapid implementation of secure extranets," said Chris Hurst, vice president of worldwide telecommunications and cable industries for Sun Microsystems. "Pilot CPN is a truly innovative service in that it ushers in the next major trend that will benefit businesses everywhere: subscribing to services that provide corporate IT functions. By putting security management in the hands of Pilot, Sun and Cisco, IT enterprises are free to focus their staffing, time and fiscal resources where it really counts--their core business."

Pilot CPN will be deployed on a range of highly scalable, reliable Sun servers, from the Sun Ultra 5 server to the Sun Enterprise 10000 server. The Sun server platform brings maximum scalability to the Pilot CPN solution, allowing it to be customized for any size WAN ranging from small workgroup to enterprise-wide data center. Pilot and Sun will work together to incorporate Sun's secure, multiple-level Trusted Solaris Operating Environment software into new service plans.

"Pilot's Security Utility provides the highest level of security available today for corporate Internet connections," said Marketta Silvera, Pilot chief executive officer and president. "This alliance is dedicated to delivering innovative network services that optimize corporate WAN investments by building security into the bandwidth."

Pilot's Heuristic Defense Infrastructure is the foundation of the Security Utility Service. It is a unique combination of a multi-layered, distributed architecture and the expertise of security engineers. At Pilot's nationwide Security Centers, security experts monitor the sophisticated technology 24 x 7 and continually develop upgrades to detect and repel attacks aimed at Pilot customers. These security enhancements are immediately "built in" to protect all Pilot subscribers. With multiple technologies, diverse protection techniques, and a process of evolutionary improvement, the Pilot Security Utility Service is unparalleled in the security marketplace.

About Sun Microsystems, Inc.

Since its inception in 1982, a singular vision, "The Network Is The Computer," has propelled Sun Microsystems, Inc. (NASDAQ: SUNW) to its position as a leading provider of high quality hardware, software and services for establishing enterprise-wide Intranets and expanding the power of the Internet.

About Pilot Network Services, Inc.

Pilot (NASDAQ: PILT), the Security Utility Service pioneer, enables secure e-commerce for companies of all sizes by providing a wide range of services with built-in security to protect enterprise networks. As a Security Utility, Pilot provides the highest possible level of protection by connecting businesses to the Internet through its Security Centers nationwide. Pilot's Heuristic Defense Infrastructure combines a revolutionary, distributed security architecture with 24 x 7 monitoring by security engineers - to continually evolve and proactively defend companies' e-commerce interactions against new hacker techniques. Pilot's protected services include e-commerce and e-business services; Internet access and gateways; and extranet/VPN with encryption, authentication, access control, virus scanning, and web filtering.

Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet.

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All trademarks are the property of their respective owners.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially, including potential fluctuations in results of operations, the new market for Internet security monitoring, detection and defense services, impact of competitive products and services, and risk factors listed in Pilot's registration statement on Form S-1 dated August 10, 1998.

Cisco, Cisco IOS, Cisco Systems, and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.