St. Bernard Software, Inc. (BULLETIN BOARD: SBSW) , a global provider of comprehensive security, continuity, and collaboration solutions for small and midsized businesses (SMBs) today announced preliminary, unaudited financial results for its year ended December 31, 2006. The company cautioned that its final results could be subject to change based on adjustments in connection with its 2006 financial statement audit.

2006 Highlights:

* Completed merger with Sand Hill IT to become a public company.

* Grew St. Bernard's leading product iPrism's new customer acquisition billing by over 40% annually.

* Announced appointment of Vince Rossi, previously a Senior Vice President of Product Management and Marketing with McAfee, Inc., as president and CEO.

* Completed the acquisition of Singlefin, an on-demand security software provider, which provided the foundation for our new software as a service (SaaS) offering LivePrism.

* Established the company's strategic platform for delivering managed and self-managed network solutions exclusively to small and medium businesses.

"2006 was a year of transition for St. Bernard Software," said Vince Rossi, CEO of St. Bernard Software. "During the year we completed a merger to become a public company and completed our first technology acquisition. The acquisition provides St. Bernard a platform upon which we can grow by delivering managed and self-managed network solutions exclusively to small and midsized businesses through our two primary solutions, iPrism and LivePrism. Our products are designed to solve the unique needs of small and medium sized businesses while minimizing our customers' IT resource requirements. We believe we are focused on a high growth, under-served market, as is evidenced by our iPrism new customer growth rate in 2006, and we look forward to continuing to successfully marketing iPrism and our new product, LivePrism, in 2007."

Financial Results

Revenue in the fourth quarter was $6.1 million and exceeded the high end of the $5.5 to $6.0 million guidance previously provided. Revenue for the year ended December 31, 2006 is expected to be $22.6 million, a decrease of 5.8% compared to 2005. The decrease is due primarily to a decline associated with the Company's legacy product lines. Subscription revenue increased to $15.6 million, up approximately 11.4% from $14.0 million in 2005. GAAP loss per share for 2006 was $0.64, an increase of $0.32 compared to 2005. St. Bernard Software's cash balance was $4.7 million at December 31, 2006.

Business Outlook

Mr. Rossi added, "We've established a platform that provides two growth engines for the company and have made early, focused investment in our go-to- market capability and on-demand infrastructure to help drive the growth. We are optimistic about 2007, and believe that we will achieve good growth in our iPrism and LivePrism product lines. Historically the first quarter is seasonally the weakest of the year and, as such, we currently expect our Q1 2007 revenue to range from $4.2 to $4.8 million. As a reminder, the company divested its UpdateExpert product line early in the first quarter of 2007 and our guidance reflects the impact of that divestiture. We look forward to building on the foundation we created in 2006 and to expanding our business in 2007."

Conference Call Information A live conference call scheduled for 2:00 p.m. today can be accessed at: 800-257-1836 (US and Canada) 303-205-0066 (International) Passcode: Give the company name "St. Bernard"

A webcast is also available at www.stbernard.com under Investor Relations

Conference Call Replay

A replay of today's conference call can be accessed at: 800-405-2236 (US and Canada) 303-590-3000 (International) Passcode: 11083772# Available today, 8:00 p.m. ET through Thursday, March 1, 2007 at 11:59 pm

A webcast is also available at www.stbernard.com under Investor Relations.

About St. Bernard Software

St. Bernard Software (BULLETIN BOARD: SBSW) is a global provider of comprehensive security and hosted office solutions for small and midsize businesses (SMBs). St. Bernard Software also provides the SMB market with a broad range of flexible and integrated hosted solutions, including secure content management, messaging continuity and collaboration. Deployed across millions of computers worldwide, the company's award-winning products deliver innovative security solutions that offer the best combination of ease-of-use, performance and value. Established in 1995 with headquarters in San Diego, CA and international offices in the United Kingdom and Australia, St. Bernard Software sells and supports its products directly and through solution partners worldwide. For more information, please visit www.stbernard.com.