Hifn to Present at the Needham Growth Conference

Network security and flow classification market leader Hifn(TM) (Nasdaq: HIFN - News), will participate in the Needham Growth Conference on Tuesday, January 11, 2005, at 9:30 a.m. Eastern time. The conference is being held at the New York Palace Hotel in New York, New York, and will feature in-depth investment-related presentations by top emerging growth companies.

Russell Dietz, VP and CTO, and William Walker, VP and CFO, will present a company overview and Hifn's overall market leading strategy in the network security services space.

FORWARD-LOOKING STATEMENT NOTICE

"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's future financial performance. These forward-looking statements related to revenue growth, expense reduction, product development, potential impact of design wins, prospects for economic recovery, gross margins and operating margins are subject to the risks set forth below and actual results could vary. The specific risks include: dependency on a small number of customers, customer demand and customer ordering patterns. Orders from Hifn's customers may be below the company's current expectations. Additional risks include: risks associated with the success of Hifn's ongoing technology development efforts; Hifn's ability to successfully integrate new technology into products in a cost-effective manner; Hifn's ability to effectively control expenses; the timing of Hifn's new product introductions; intense competition in the network and storage equipment industries; and the significant uncertainty of market acceptance of Hifn's new products. These and other risks are detailed from time to time in Hifn's SEC reports. Hifn undertakes no duty to update these disclosures.

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