SAN DIEGO, CA–(EMWNews – July 28, 2008) – St. Bernard Software, Inc. (OTCBB: SBSW), a

leader in Web security appliances, announced today the completion of a debt

refinancing and enhanced line of credit with Partners for Growth II, L.P.

The agreement provides access to a $1.5 million revolving line of credit

that will be used to pay off a high interest rate bridge note and provide

access to additional working capital to support the company’s growth.

The new agreement provides the Company with several advantages, including

additional borrowing availability, dramatically reduced interest rate, and

greater flexibility in managing working capital.

“We are pleased with the confidence that Partners for Growth has shown in

our growing business,” said Vince Rossi, president and CEO of St. Bernard.

“Our continued delivery of operating results has enabled us to establish

this new relationship and gives us the ability to better manage our growth.

This new credit facility allows for greater flexibility, and will be used

to support our growth in 2008, and beyond.”

Details of the transaction are available in the Company’s Form 8-K filing.

About Partners For Growth II, L.P.

Partners for Growth (“PfG”) provides custom debt solutions to private and

public emerging growth technology and life science companies. PfG’s custom

approach results in a variety of structures and terms including working

capital lines of credit, term loans and convertible debt. PfG looks to

share in the success of its clients by taking equity participation rights

in the form of stock warrants or convertibility of its debt.

About St. Bernard

St. Bernard offers a full suite of secure content management solutions that

integrate on-premises appliances with on-demand services to protect

corporate networks from online threats, manage bandwidth use and enforce

acceptable use policies. This industry-leading hybrid solution platform

offers the security and control of an on-premise appliance with the

scalability of an on-demand service.

St. Bernard’s suite of iPrism® solutions — iPrism Web Filter, iPrism IM

Filter and iPrism Email Filter — prevent Internet threats, such as spam,

viruses, spyware and phishing, from entering corporate networks across all

electronic communications: email, IM and Web.

Established in 1995 with headquarters in San Diego, CA, St. Bernard sells

and supports its products directly and through solution partners worldwide.

For more information, please visit www.stbernard.com.

©2008 St. Bernard Software Inc. All rights reserved. The St. Bernard

Software logo, LivePrism, iPrism, and iGuard are trademarks of St. Bernard

Software Inc. All other trademarks and registered trademarks are hereby

acknowledged.

This press release may contain forward-looking statements that involve

risks and uncertainties, as well as assumptions that, if they prove

incorrect, could cause our results to differ materially from those

expressed or implied by such forward-looking statements. All statements

other than statements of historical fact are statements that could be

deemed forward-looking statements, including, among other things, any

projections of earnings, revenues (including where the underlying contract

has already been signed), or other financial items; any statements of the

plans, strategies, and objectives of management for future operations; any

statements concerning proposed new products, services, or developments; any

statements regarding future economic conditions or performance; statements

of belief and any statement of assumptions underlying any of the foregoing.

The risks, uncertainties and assumptions referred to above include, among

other things, performance of contracts by customers and partners; employee

management issues; the timely development, production and acceptance of

products and services and their feature sets; the challenge of managing

asset levels, including inventory; the flow of products into third-party

distribution channels; and the difficulty of keeping expense growth at

modest levels while increasing revenues. Announcements of contract awards

should not be interpreted as reflecting revenue in any particular period

and may relate to revenue recorded in prior periods. These and other risks

and factors that could cause events or our results to differ from those

expressed or implied by such forward-looking statements are described in

our most recent annual report on Form 10-KSB, as well as other subsequent

filings with the Securities and Exchange Commission. We assume no

obligation and do not intend to update these forward-looking statements.