ARCSIGHT APPOINTS E. STANTON MCKEE JR. TO BOARD OF DIRECTORS

Enterprise Security Management Vendor Taps Seasoned Veteran For Financial Expertise

CUPERTINO, Calif. – January 18, 2005 – ArcSight, the leading provider of enterprise security management solutions (ESM), today announced that E. Stanton McKee Jr. has joined the company’s board of directors. Mr. McKee joins ArcSight after serving as executive vice president and chief financial and administrative officer of Electronic Arts Inc., the world’s largest developer and publisher of interactive entertainment.

“We are delighted that Stan, an exceptional executive and seasoned Valley leader, has chosen to join our board of directors,” said Robert Shaw, chairman and CEO of ArcSight. “His proven track record in the market and unparalleled financial expertise will be immensely valuable as ArcSight continues on its path of rapid growth.”

Mr. McKee joined Electronic Arts in 1989 and served as its chief financial and administrative officer for over 13 years. During his tenure, Electronic Arts enjoyed unprecedented growth, expanding its sales revenue from $50 million to $2.5 billion.

“Never before has there been such a recognized need for enterprises to secure their information assets,” said Mr. McKee. “As a result, the demand for ArcSight’s industry-leading security products has skyrocketed. I look forward to serving on ArcSight’s board as the company continues to establish its position as the market leader and embarks on a new phase of growth and development.”

Mr. McKee has served as the chairman of Leapfrog’s Audit Committee since November 2003. He has also served on the boards of several private companies. Mr. McKee holds B.A. and M.B.A. degrees from Stanford University.

About ArcSight
ArcSight, Inc. is the leading provider of Enterprise Security Management (ESM) solutions. Winner of CMP’s Network Computing Editor’s Choice and Network World Best of Tests awards, and numerous other awards and recognitions, ArcSight ESM 3.0 enables enterprises to centrally manage information risk. By comprehensively collecting and analyzing security data, ArcSight ESM 3.0 provides accurate, real-time internal, external threat management and compliance reporting. ArcSight customers include companies in the Fortune top 5 of financial services, banking, telecommunications, high-technology, retail, healthcare, and biotech industries -- and more than 20 of the top 30 federal agencies.

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