OTCDD

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CDSS (OTCBB) Citadel Security Software Issues Guidance on 2003; Expects Annual Revenue of $7.5 Million and Profitability by Third Quarter 2003

WEDNESDAY, DECEMBER 18, 2002 08:02 AM

DALLAS, Dec 18, 2002 (BUSINESS WIRE) -- Citadel Security Software, Inc. (OTCBB:CDSS) has issued guidance on full year 2003. The interest and demand for Hercules, the company's automated vulnerability remediation product released in the spring of 2002, from government agencies, healthcare organizations and corporations is building the sales pipeline. The Company expects revenue for the full year 2003 to reach $7.5 million and to achieve profitability by the third quarter 2003.

"Our pipeline opportunities from ongoing customer pilots and evaluations of Hercules are in excess of 300,000 seats and we believe that Hercules will generate strong revenue growth in 2003 over 2002," said Steven B. Solomon, CEO of Citadel. "The market demand is driven by an increased concern of cybersecurity threats, as well as regulations including HIPAA, Gramm-Leach-Bliley Act, PDD-63 and the initiatives of the National Strategy to Secure Cyberspace. We plan to expand our current sales force throughout 2003 to address the anticipated increase in product demand."



About Citadel


Citadel Security Software Inc. (OTCBB:CDSS) develops, markets and licenses computer security and privacy software for one of the fastest growing software industry segments today -- security inside the firewall. Citadel's Winshield(R) SecurePC(TM) and NetOFF(TM) products enable companies to enforce security policies from a single point of control. Hercules remediates vulnerabilities from the five classes of security vulnerabilities: insecure accounts, unnecessary services, mis-configurations, back doors and software defects. Hercules' open architecture design allows the import and aggregation of assessment data from many sources. Hercules is interoperable with industry leading vulnerability assessment tools allowing customers to address the real world issues of vulnerability assessment and remediation. Citadel's products also address the initiatives of the President's National Strategy to Secure Cyberspace and the mandates of HIPAA and Gramm-Leach-Bliley legislation for the healthcare and financial industries. Further information about Citadel Security Software, its products and investor information can be accessed at its website, www.citadel.com.


Safe Harbor/Forward-looking Statements:


Except for the historical information contained herein, this news release contains forward looking statements that are subject to risks and uncertainties, including lack of Citadel operating history, uncertainty of product acceptance, uncertainty to compete effectively in the security software market and the uncertainty of profitability and cash flow of Citadel. In providing the guidance for 2003, Citadel has taken into account the projected spending environment for information technology and market conditions. These risks and uncertainties may cause actual outcomes and results to differ materially from expectations in this press release. These and other risks are detailed from time to time in CT Holdings' and Citadel's SEC reports, including CT Holdings' report on Form 1O-KSB for the year ended December 31, 2001 and most recent Form 10-QSBs, as well as Citadel's Registration Statement on Form 10-SB and amendments and most recent Form 10-QSBs.


CONTACT: Citadel Security Software, Inc.
Jack Doxey, 214/750-2465
[e-mail]
or
Schwartz Communications, Inc.
Tara Dugan or Dara Sklar, 415/512-0770
[e-mail]

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