Enigma Software Group Inc. Responds to CheckPoint Software and Competing Corporations Listing SpyHunter as a Security Risk

STAMFORD, Conn., July 13 -- Checkpoint Software along with several smaller corporations have recently started to list SpyHunter, a software product of Enigma Software Group, Inc. (OTC Bulletin Board: ENGM - News; "Enigma" or the "Company"), in their security products as a security threat. The other companies that have begun detecting SpyHunter are Kaspersky Lab, BullGuard LTD., Ikarus, SoftWin (BitDefender), GData (AntiVirenKit), Ewido, Esafe, Fortinet. This precipitous and ill-considered action by these competitors can cause Enigma damages.

In response to these erroneous actions, Enigma is sending several Cease and Desist letters. A copy of the letters can be found at the following links:

BitDefender LLC Cease and Desist Letter

BullGuard Cease and Desist Letter

CheckPoint Software Technologies Cease and Desist Letter

G Data Software Cease and Desist Letter

Grisoft Inc. Cease and Desist Letter

IKARUS Software Final Notice on Cease and Desist Letter

Kaspersky, Inc. Cease and Desist Letter

SpyHunter is not a security threat, and Enigma intends to defend its position vigorously against any business that seeks to use this erroneous designation as part of a strategy to undermine competition. Contrary to these listings, SpyHunter helps consumers protect their computers against unwanted spyware and malware.

In 2004, Enigma was labeled as a security threat by its competitor Lavasoft. In response to this listing, as well as to an orchestrated campaign of false statements posted on Lavasoft's website forum, Enigma filed a complaint in the United States District Court Southern District of New York. A copy of that complaint can be found at the following link:

Lavasoft Complaint

That case ended in a settlement, and Lavasoft is no longer listing Enigma's products.

For a better understanding of Enigma's business, the reader is urged to review the Company's public filings, which are available online at http://www.sec.gov.

About Enigma Software Group, Inc.

Enigma develops and markets digital products and services for the consumer market. Enigma is known mostly for its Anti-Spyware software product SpyHunter. SpyHunter is distributed exclusively over the Internet by download. Enigma owns and operates several websites, including the Spyware reference sites www.spywareremove.com, www.anti-spyware-101.com, and more. Enigma Software operates within the United States with a worldwide customer base.

This release contains forward-looking statements relating to the development of Enigma Software Group, Inc.'s products and services and future operating results, including statements regarding Enigma Software Group's software, that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "intend," "anticipate," variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect Enigma Software Group Inc.'s actual results include the progress and costs of the development of our products and services, the timing of market acceptance of those products and services and subscriber cancellations and returns. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Enigma Software Group, Inc. undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.