Flag Bank Selects Reflex Security for Intrusion Prevention and Anti-Virus Protection

ATLANTA -- May 17, 2004 -- Reflex Security, the technological leader in Intrusion Prevention solutions, today announced that Flag Bank, a subsidiary of Flag Financial Corporation (NASDAQ:FLAG), has selected Reflex Security's Interceptor^TM solution for state-wide deployment within Georgia.

The Reflex Interceptor is an Automated Intrusion Response (AIR)^TM system that identifies, analyzes and responds to internal and external network security threats in real-time, minimizing the need for human intervention. As such, Flag Bank has found a cutting-edge solution to automatically defend against cyber threats to their computing environment.

"Reflex Security is a pioneer and leading provider of counter-offensive network and host security solutions," said Dan Speight, vice chairman and chief financial officer of Flag Bank. "We chose Reflex Security's solution because of its flexibility and because it's the only available product set that will accomplish intrusion prevention and anti-virus in real-time, with minimal operational infrastructure requirements on one appliance."

"By identifying, analyzing and preventing attempted cyber and virus attacks and intrusions, our solution will provide multiple locations of Flag Bank with automatic threat detection and prevention from internal and external malicious activity including viruses," said Jim Watson, chairman and CEO of Reflex Security, Inc. "We are delighted that Flag Bank has become the latest addition to our blue-chip customer base."

Recently cited by Gartner as a "pure play" Intrusion Prevention solution, Reflex Security is viewed as an industry visionary in the development of Intrusion Detection and Prevention Systems. "We believe we are well positioned to take advantage of this recent shift in the IT security marketplace, where today's IT security customers not only want to detect attacks and viruses, but want to proactively prevent them," said Watson.

About Flag Financial Corporation
Headquartered in Atlanta, Flag Bank is a wholly owned subsidiary of Flag Financial Corporation, a bank holding company. The Flag Financial Franchise consists of 20 offices, including 15 full-service banking offices and four mortgage/loan production offices, in 11 counties in Georgia. For more information, visit www.flagbank.com.

About Reflex Security, Inc.
Reflex Security is a leading provider of counter-offensive network and host security technology solutions. The company's flagship product, the Reflex Interceptor^TM, is an Automated Intrusion Response (AIR)^TM system that identifies, analyzes and responds to internal and external network security threats and viruses in real-time, without the need for human intervention. Headquartered in Atlanta, Georgia, Reflex Security has a network of channel partners in North America and Asia. For more information, visit Reflex Security at www.reflexsecurity.com or call 888-872-7555

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