Music service Spotify hooks up with Ford in first vehicle foray






(Reuters) – Streaming music service Spotify has partnered with Ford Motor Co to allow its subscribers to listen to music in more than one million Ford vehicles in North America.


Owners of Ford models with SYNC AppLink can access Spotify’s catalog of more than 20 million songs through voice activation using its smartphone app.






The deal, announced by both companies on Monday, is Spotify’s first collaboration with an automaker.


Spotify is a free on-demand streaming music service that also offers a subscription package that allows listeners to hear music without interruptions from commercials and gain access to play lists and preferences from any device anytime.


Spotify says it has 20 million active users worldwide, with 25 percent of them paying for subscriptions.


Music services like Spotify and Pandora Media Inc


are striking partnerships with automakers to make their music available to drivers, especially as Internet access improves in vehicles.


Pandora is available in 75 vehicle models and has deals with automakers like General Motors Co , Ford, BMW and Chrysler Group LLC , allowing drivers to plug in their Pandora-enabled mobile devices and use car dashboards to control the service.


More than 1 million people have used Pandora’s dashboard integration, it said.


Separately on Monday, GM said it was switching to AT&T Inc from Verizon Wireless to provide high-speed wireless service for its 2015 vehicle models.


(Reporting by Jennifer Saba in New York; Editing by Jeffrey Benkoe)


Internet News Headlines – Yahoo! News





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FDA approves new targeted breast cancer drug


WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.


The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.


Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.


"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."


Cobleigh helped conduct the key studies of the drug at the Chicago facility.


The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.


The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.


Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.


FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.


Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.


FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer


Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.


Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.


Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.


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Gloomy Italians vote in election crucial for euro zone


ROME (Reuters) - Italy voted on Sunday in one of the most unpredictable elections in years, with many voters expressing rage against a discredited elite and doubt that a government will emerge strong enough to combat a severe economic crisis.


"I am pessimistic. Nothing will change," said Luciana Li Mandri, 37, as she cast a ballot in the Sicilian capital Palermo on the first of two days of voting that continues on Monday.


"The usual thieves will be in government."


Her gloom reflected the mood across Italy, where many voters said they thought the new administration would not last long, just the opposite of what Italy needs to combat the longest slump in 20 years, mounting unemployment and a huge public debt.


The election is being closely watched by investors whose memories are fresh of a debt crisis which forced out scandal-plagued conservative premier Silvio Berlusconi 15 months ago and saw him replaced by economics professor Mario Monti.


"I'm not confident that the government that emerges from the election will be able to solve any of our problems," said Attilio Bianchetti, a 55-year-old building tradesman in Milan.


Underlining his disilluion with the established parties, he voted for the 5-Star Movement of comic Beppe Grillo.


An iconclastic, 64-year-old Genoese, Grillo has screamed himself hoarse with obscenity-laced attacks on politicians that have channeled the anger of Italians, especially a frustrated young generation hit by record unemployment.


"He's the only real new element in a political landscape where we've been seeing the same faces for too long," said Vincenzo Cannizzaro, 48, in Palermo.


Opinion polls give the centre-left coalition of Pier Luigi Bersani a narrow lead but the result has been thrown open by the prospect of a huge protest vote against Monti's painful austerity measures and rage at a wave of corruption scandals.


A weak government could usher in new instability in the euro zone's third largest economy and cause another crisis of confidence in the European Union's single currency.


Television tycoon Berlusconi, showing off unrivalled media skills and displaying extraordinary energy for a man of 76, has increased uncertainty over the past couple of months by halving the gap between his centre-right and Bersani.


"I am pessimistic. There is such political fragmentation that we will again have the problem of ungovernability" said Marta, a lawyer voting in Rome who did not want to give her family name. "I fear the new government won't last long."


Another Roman voter, lab technician Manila Luce, 34, said: "I am voting Grillo and I hope a lot of people do. Because it's the only way to show how sick to the back teeth we are with the old parties."


Voting continues until 10 p.m. (4 p.m. EST) and resumes on Monday at 7 a.m. Exit polls will be published shortly after polls close at 3 p.m. on Monday. Full official results are expected by early Tuesday.


Snow in the north was expected to last into Monday and could discourage some of the 47 million eligible voters. Authorities said they were prepared for the weather and in the central city of Bologna roads were cleared of snow before voting started.


TOPLESS FEMINISTS


Several bare-breasted women protested against Berlusconi when he voted in Milan. They were bundled away by police.


The four-time premier, known for off-color jokes and a constant target of feminists, is on trial for having sex with an underage prostitute during "bunga bunga" parties at his villa.


Most experts expect a coalition between Bersani and Monti to form the next administration, but whatever government emerges will have to try to reverse years of failure to revitalize one of the most sluggish economies in the developed world.


The widespread despair over the state of the country, where a series of corruption scandals has highlighted the stark divide between a privileged political elite and millions of ordinary Italians struggling to make ends meet, has left deep scars.


"It's our fault, Italian citizens. It's our closed mentality. We're just not Europeans," said voter Li Mandri in Palermo.


"We're all about getting favors when we study, getting a protected job when we work," she said. "That's the way we are and we can only be represented by people like that as well."


ECONOMIC AGENDA


Even if Bersani wins as expected, Analysts are divided over whether he will be able to form a stable majority that can force through sweeping economic reforms.


His centre-left is expected to have firm control of the lower house, thanks to rules that give a strong majority to whichever party wins the most votes nationally.


But a much closer battle will be fought for the Senate which is elected on a regional basis and which has equal law making powers to the chamber.


Berlusconi has clawed back support by promising to repeal Monti's hated new housing tax, the IMU, and to refund the money. He relentlessly attacked what he called the "Germano-centric" policies of the former European Union commissioner.


Think-tank consultant Mario, 60, said on his way to vote in Bologna that Bersani's Democratic Party was the only group serious enough to repair the economy: "They're not perfect," he said. "But they've got the organization and the union backing that will help them push through structural reforms."


Despite Berlusconi's success, Grillo has tapped into the same public frustration as the conservative tycoon and pollsters say his 5-Star Movement of political novices could overtake the centre-right to take second place in the vote.


Rivals have branded Grillo a threat to democracy - a vivid image in a country ruled by fascists for two decades until World War Two. Several voters who spoke to Reuters said Grillo was not the answer because of his lack of concrete policies and the inexperience of those who will sit in parliament for 5-Star.


"Grillo is a populist and populism doesn't work in a democracy," said retired notary Pasquale Lebanon, 76, as he voted for Bersani's Democratic Party in Milan.


"I'm very worried. There seems to be no way out from a political point of view, or for being able to govern," said Calogero Giallanza, a 45-year-old musician in Rome as he also voted for Bersani.


"There's bound to be a mess in the Senate because, as far as I can see the 5-Star Movement is unstoppable."


(Additional reporting by Cristiano Corvino, Lisa Jucca, Jennifer Clark, Matthias Baehr, Jennifer Clark and Sara Rossi in Milan, Stephen Jewkes in Bologna, Wladimir Pantaleone in Palermo, Stefano Bernabei and Massimiliano Di Giorgio in Rome; Writing by James Mackenzie and Barry Moody; Editing by Alastair Macdonald)



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Live Twitter surgeries hit with hospitals, public






HOUSTON (AP) — Amy Shireman logged into Twitter early Wednesday to join thousands of people from 60 countries watch live something she had experienced but never seen: a baby boy delivered by cesarean section, in all its graphic imagery.


The live Twitter broadcast brought to viewers by Houston’s Memorial Hermann Health System was the medical institution’s latest foray into a growing trend to gain exposure by showing the world via social media routine procedures that happen daily in operating rooms.






While the Internet and social media have been a part of the medical industry for years, hospitals and doctors are now using it to gain leverage in a competitive market. And what better way to do that than provide people with an authentic online version of the kinds of surgeries they’ve been watching for years on fictional TV shows such as “Grey’s Anatomy,” ”House” and “ER?”


“It’s fascinating to pull back the curtain on the mystery of the OR,” said Natalie Camarata, the social media manager at Houston’s Memorial Hermann Hospital who helped broadcast Wednesday’s C-section as well as two other procedures, including a brain surgery done by Dr. Dong Kim, who gained notoriety when he treated former U.S. Rep. Gabrielle Giffords after she was shot in the head in 2011.


Through a variety of matrices that help track online activity, Camarata estimated that 72,000 watched the C-section live on Twitter, while an additional 11,000 viewed it in another format. The viewers were from 60 countries, she said, with the most international followers coming from Germany, Norway and Israel.


During the procedure, viewers tweeted questions, and doctors or staff responded. One viewer from Norway asked about the difference in how the umbilical cord is treated in a C-section. Several tweeted congratulations. In the two hours the hospital was live, it gained more than 600 followers, dozens of them in the first few minutes. Several noted the images were gory, joking they wouldn’t watch it over breakfast.


Shireman, a 35-year-old mother of two from Pittsburgh, was intrigued to see “what was happening beyond the curtain” after having two C-sections herself. While she had hoped the hospital would focus more on the risks, she said she would watch it again, and would consider watching other surgeries.


“The pictures of watching that baby come out of the womb were just amazing” Shireman said. “I know it was delayed a bit … but it did have that live feel like you were right there in the OR.”


Previously, when Memorial Hermann live tweeted a brain surgery, more than 235,000 watched, more than 280,000 viewed photos and video and the hospital gained 7,000 new followers. With each event, the hospital finds more and different people participating, Camarata said.


“When hospitals did it several years back, the online audience wasn’t fully engaged,” she said. “Now people are living Twitter, living Facebook. It’s part of their everyday life.”


Tyler Haney, the vice president of digital marketing at the University of Pittsburgh Medical Center, said his hospital system has not live tweeted a surgery but also has not ruled it out. For now, it is focusing on innovative things at the center, like providing the online audience an opportunity to interact with a brain computer interface, which increased traffic from social media outlets by 120 percent.


This trend — which the medical industry latched on to later than others — will only grow, he said, quoting statistics that found 57 percent of people saying a social media connection would have a “strong impact” on their decision to seek treatment at a given hospital.


The Mayo Clinic has been a leader in the field, said Lee Aase, the clinic’s social media director but has opted not to do live events from the OR, feeling that it is voyeuristic and does not provide additional benefits. The clinic has focused instead on question-and-answer sessions on specific topics.


“People are taking their social network connections with them wherever they go and we certainly are seeing building interest in this,” he said.


Dr. Anne Gonzalez, one of the surgeons who participated in the C-section and is affiliated with the system’s women’s hospital, said social media helps doctors navigate a competitive market.


“There’s a lot of challenges with trying to make patients understand what you think is best for them in a very non-paternalistic way, and I think Twitter helps with that,” she said.


Swedish Health Services, which has five hospitals and more than 100 clinics in the Seattle area, recently live tweeted an ear surgery, said Dana Lewis, manager of digital marketing and internal communications, using only words and photos to reach a hearing-impaired audience.


The hospital also live tweeted a patient going through a sleep clinic and had some 10,000 people follow it in the middle of the night, she said.


“It’s about reaching people where they are, so it doesn’t make sense to have a seminar in the afternoon about not being able to sleep. Why not do it in the middle of the night … when they can’t sleep and they want to find out more about how they can get help?” Lewis said. “That’s the beauty of social media.”


___


Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP


Social Media News Headlines – Yahoo! News





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Ian Ziering: Why My Pregnant Wife Pole Dances

Pregnancy does a body good. Then again, for Ian Ziering‘s expectant wife Erin, so does pole dancing.


The mom-to-be took up the sport following the birth of daughter Mia Loren, 22 months, when she found herself searching for a balance to all things baby.


“I think I got so wrapped up in the motherly world, I was looking for something to make me feel more womanly, more myself,” Erin tells The Bump.


After a night out with her friends, among them a pole dance instructor, the first-time mom — who was already pregnant with the couple’s second child — had her answer.


Ian Ziering Pregnant Wife Pole Dances
Courtesy Erin Ziering



“She was telling us that it will make you feel better about your body. It makes you feel more self-aware, and more confident, and that it helps with a lot of issues that happen after you have a baby,” Erin says, adding that while safe, she was still advised to check with her doctor first.


“It’s great exercise. I go once or twice a week, and it’s girl time with my friends. We go out to dinner afterwards,” she shares. “It’s been a great experience, and it kept me in great shape during my pregnancy with a lot of extra energy.”


But she’s not the only one seeing the results of her new talent; Former 90210 actor Ziering is also benefiting from the mama-to-be’s latest moves.


“I had some apprehension for Erin to be involved with that because, um, somehow in my past I’ve seen pole dancing, and I was concerned that a pregnant woman shouldn’t be doing those kinds of things,” he jokes.


Noting that her approach to the pole is “really from the workout perspective,” Ziering admits the pay off has been big in other areas as well. “It helps her get in touch with her sensuality, with her femininity, and with her sexuality, and this is great!” he explains.


“It helps her stay positive when she starts to feel [bad about her body]. Being like, ‘Yeah, I might be pregnant, but I’m making it look good!’ And on top of that, she just gets a little sexier! I think it’s great, and I’m really benefiting.”


With the couple’s second child due in May, Erin is ready for round two of baby bliss, determined to not let the anxiety of life with a newborn deter her from enjoying the experience.


“I felt like with Mia, I was always so nervous about everything, making sure I was doing everything perfectly and reading every book,” she says. “I think this time will be nice because I know what’s going on and I will be more relaxed.”


Ziering and Erin’s own childhoods allows the pair to be the perfect tag-team, although her medical background often tips the scale when it comes to making final decisions.


“We both benefit from growing up in very loving, nurturing environments. We come from similar upbringings,” he says. “Because Erin is a nurse, there’s a lot of credibility to her perspective of raising the baby that I really can’t argue with.”


He continues: “She’ll say, ‘I have looked into this,’ and explain it and I say, ‘Okay! You really have your finger on the heartbeat of child rearing,’ because she does. We go with it.”


Although he cherishes his recent role of a lifetime — dad! — fatherhood comes with its fair share of hardships. “I think the most challenging thing is keeping the stress level down during the times when the baby is inconsolable,” Ziering, 48, admits.


“But I understand that this is all a part of the work, and this is what I signed up for, and that it’s bond-building. I know that the view from the top is worth the climb.”


Joking that life with a toddler has left her less than prepared for the big arrival — “I could be pregnant longer, and it would be okay!” Erin says — she’s anticipating plenty of one-on-one time with baby after the birth.


“Mia will go to school for a couple of hours in the morning, and it will be a nice transition for her,” she explains. “She’ll be able to socialize, learn and be in a safe environment while I’m having bonding time with the new baby. We’re looking forward to that.”


Click here to read the full interview at The Bump.


– Anya Leon


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FDA approves new targeted breast cancer drug


WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.


The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.


Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.


"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."


Cobleigh helped conduct the key studies of the drug at the Chicago facility.


The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.


The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.


Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.


FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.


Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.


FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer


Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.


Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.


Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.


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Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.


Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.


Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.


"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.


Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.


But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.


National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.


"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.


OPTIONS BULLS TARGET GAINS


The spending cuts, if they go ahead, could hit the defense industry particularly hard.


Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.


Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.


"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.


The stock ended up 0.6 percent at $88.12 on Friday.


If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.


General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.


EYES ON GDP DATA, APPLE


The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.


U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.


Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.


Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.


On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.


(Additional reporting by Doris Frankel; Editing by Kenneth Barry)



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Egypt parliament election start moved to April 22


CAIRO (Reuters) - Egypt's parliamentary elections, previously scheduled to begin on April 27, have been brought forward to start on April 22, the presidential spokesman said on his Facebook page on Saturday.


Members of Egypt's Coptic Christian minority had criticized the planned timing of the elections because some voting would take place during their Easter holiday.


(Reporting by Alexander Dziadosz; editing by David Stamp)



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Mandiant goes viral after China hacking report






(Reuters) – Cybersecurity company Mandiant Corp won plaudits from its peers and made front-page news around the world this week when it published a report that purportedly traced a series of cyberattacks on U.S. companies to a Shanghai-based unit of the Chinese army.


But some hackers have turned the tables on the cyber-expert by creating malicious versions of its 74-page report that were infected with computer viruses. They emailed the tainted reports to their victims this week in a bid to wreak havoc under Mandiant’s name.






Though the episode was embarrassing, the company said its systems were not breached. “Mandiant has not been compromised,” the company said on its corporate blog.


Mandiant was founded in 2004 by Kevin Mandia, a former U.S. Air Force cyber-forensics investigator who co-authored an influential textbook on the subject. The company made its name by automating processes used to investigate computer breaches.


Mandiant was largely unknown outside the computer security industry until Monday, when it fingered the People’s Liberation Army’s Shanghai-based Unit 61398 as the most likely driving force behind a Chinese hacking group known as APT1.


China’s Defense Ministry issued a flat denial of the accusations and called them “unprofessional.” But Mandiant won kudos for the unprecedented level of detail in its report, including the location of a building in Shanghai’s Pudong financial hub from which Mandiant said the unit had stolen “hundreds of terabytes of data from at least 141 organizations across a diverse set of industries beginning as early as 2006.”


Other security companies that have published reports on cyberattacks have shied away from so clearly identifying their perpetrators.


“It was a wonderful report,” said Michael Hayden, a former director of the CIA and National Security Agency, who is now with the Chertoff Group. “Everybody is saying ‘it’s about time.’”


The report did not identify the victims of APT1 or Mandiant’s customers, though the company says it has worked for about 40 percent of the Fortune 500.


When asked why he had decided to go public with this report, Mandia, 42, told Reuters, “There is mounting frustration in the private sector. Tolerance is shrinking. We also have a bunch of employees here who are ex-military who sense that frustration and said, ‘Let’s push this out.’”


The report comes ahead of next week’s annual RSA Conference on security in San Francisco, where Mandiant will showcase its products to help companies identify security breaches.


IPO IN THE CARDS?


Mandiant says it begins investigations by installing software it has developed that searches for infections by looking for evidence hackers leave behind. It refers to those digital signatures as Indicators of Compromise, or IOCs.


The proprietary database of those indicators makes up a critical part of the “special sauce” that automates the investigation process and, Mandiant says, enables investigators to root out attackers faster than rivals.


The company has thousands of IOCs in its database, which it is constantly expanding.


“We tend not to take the small jobs. We take the big ones – the ones you would love to read about in the paper, but we keep them out of the paper,” said Mandiant’s chief security officer, Richard Bejtlich.


Some investors have speculated that Mandiant is preparing for an initial public offering in the next year or so. On Friday, it named Mel Wesley to the post of chief financial officer. Wesley was CFO of publicly held OPNET, which was sold to Riverbed Technology in December for about $ 1 billion.


Mandia, who raised $ 70 million by selling stock to Silicon Valley venture capital firm Kleiner Perkins Caufield & Byers and One Equity Partners, the private investment arm of JPMorgan Chase & Co, said he is in no rush to go public. “I do not believe we need more capital,” he said.


Ted Schlein, a partner with Kleiner Perkins, declined to say if an IPO was in the works, but told Reuters: “They are certainly of the size and they certainly have the operating metrics to be a public company.”


Mandia said revenue soared 60 percent last year to about $ 100 million, and he expects it to climb at about the same clip this year on rising demand for Web-based services that help businesses identify when they have been attacked.


The New York Times and News Corp‘s Wall Street Journal recently disclosed that they hired Mandiant to investigate cyberattacks. The company has done similar work for Thomson Reuters Corp, parent of Reuters News, according to two sources with knowledge of the matter. A spokesman for Thomson Reuters declined to confirm it.


PREMIUM FEES


Mandiant declined to discuss its fees, though analysts say they are among the highest in an industry where rivals include much bigger companies such as Accenture, AT&T Inc, Deloitte, PwC and Verizon Communications Inc, which offer cyber-forensics alongside other services.


Mandiant consultants often bill at rates of $ 450 or more an hour, said a person familiar with the company. Teams of consultants investigate breaches for weeks and sometimes several months, typically ringing up bills of between $ 250,000 and $ 1 million.


John Pescatore, director of emerging security trends for the SANS Institute, says Mandiant can charge a premium partly because it gets strong recommendations from the government and other customers.


There is often a waiting list for its services.


“It’s supply and demand. You call Mandiant and Mandiant tells you when they can show up,” said the person familiar with the company, who was not authorized to publicly discuss its finances.


Mandiant also competes against CrowdStrike and Cylance, which are run by the founders of a company known as Foundstone, a pioneer in cyber-forensics that had hired Mandia away from the military. He left Foundstone in 2004 to start Mandiant.


(Reporting by Jim Finkle in Boston; Additional reporting by Joseph Menn in San Francisco and Deborah Charles in Washington; Editing by Tiffany Wu and Prudence Crowther)


Tech News Headlines – Yahoo! News





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