Tumbleweed Communications Corp. Reports Q4 1999 Financial Results

REDWOOD CITY, CA - January 19, 2000 - Tumbleweed® Communications Corp. (Nasdaq:TMWD), a leading provider of Internet infrastructure for business messaging, today reported results for the fourth quarter and fiscal year ended December 31, 1999. Total revenue for the quarter was $2.39 million, a 449% increase over fourth quarter 1998 revenue of $435,000, and a 41% increase over third quarter 1999 revenue of $1.69 million. Revenue for fiscal year 1999 totaled $5.78 million, an increase of 221% over revenue of $1.80 million in 1998 (excluding $220,000 from the one time sale of technology in 1998).

"The strong quarterly results reflect our rapidly expanding marketshare in key vertical and international markets," said Jeffrey C. Smith, chairman, president and CEO of Tumbleweed Communications Corp. "In addition, we saw another 43% quarter over quarter growth in our transaction revenue, indicating positive growth within our customer base. We are changing how corporations communicate with their customers and business partners. Business-critical communications are moving on line."

For the fourth quarter of 1999, Tumbleweed reported a net loss of $4.29 million, or $.20 per basic share, excluding the amortization of stock compensation expense. The net loss for the fourth quarter of 1999, including the amortization of stock compensation expense, was $5.40 million or $.25 per basic share.

For the fiscal year 1999, Tumbleweed reported a net loss of $12.92 million, or $.60 per outstanding share and $1.14 per basic share, each of which excludes the amortization of stock compensation expense. The net loss for the fiscal year 1999, including the amortization of stock compensation expense, was $16.42 million. The net loss per basic share for the fiscal year 1999 was $1.44.

About Tumbleweed Communications Corp.
Tumbleweed is a leading provider of solutions for managing secure communication and collaboration to enable the business Internet. Tumbleweed's robust policy-based framework empowers organizations to safely share and protect critical information, increase customer loyalty and privacy and dramatically reduce costs. Tumbleweed is trusted by 1,000 blue-chip customers including American Express, Chevron, Datek Online, the European Union's Joint Research Council, First Union Wachovia, John Deere, Merrill Lynch, Nike, Northern Trust, NTT, Salomon Smith Barney, Travelers and US Food and Drug Administration. One hundred of the Fortune 500 are Tumbleweed customers. Tumbleweed Communications was founded in 1993 and is headquartered in Redwood City, Calif., with offices around the world.

Except for the historical information contained herein, the matters discussed in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected, particularly with respect to the security features of Tumbleweed's products and the activities of any third party. In some cases, forward-looking statements can be identified by terminology such as "may," "will," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. For further cautions about the risks of investing in Tumbleweed, we refer you to the documents Tumbleweed files from time to time with the Securities and Exchange Commission, particularly Tumbleweed's Form 10-K filed March 30, 2001 and Form 10-Q filed November 13, 2001. Tumbleweed assumes no obligation to update information contained in this press release.