Here is the memo from DHS:

Department of Homeland Security

(UPDATED) ADVISORY

Potential For Significant Impact On Internet Operations
Due To Vulnerability In Microsoft Operating Systems 

July 30, 2003

SYSTEMS AFFECTED: Computers using the following operating systems:

Microsoft Windows NT 4.0 
Microsoft Windows NT 4.0 Terminal Services Edition 
Microsoft Windows 2000 
Microsoft Windows XP 
Microsoft Windows Server 2003 
 

OVERVIEW
THIS IS AN UPDATE TO THE DEPARTMENT OF HOMELAND SECURITY (DHS) JULY 24,
2003 ADVISORY ON MICROSOFT OPERATING SYSTEMS. The DHS/ Information
Analysis and Infrastructure Protection (IAIP) National Cyber Security
Division (NCSD) is issuing this advisory in consultation with the
Microsoft Corporation to heighten awareness of potential Internet
disruptions resulting from the possible spread of malicious software
exploiting a vulnerability in popular Microsoft Windows operating
systems.

DHS expects that exploits are being developed for malicious use.
(UPDATE: SEVERAL WORKING EXPLOITS ARE NOW IN WIDESPREAD DISTRIBUTION ON
THE INTERNET. THESE EXPLOITS PROVIDE FULL REMOTE SYSTEM LEVEL ACCESS TO
VULNERABLE COMPUTERS.) Two additional factors are causing heightened
interest in this situation: the affected operating systems are in wide
spread use, and exploitation of the vulnerability could permit the
execution of arbitrary code. DHS and Microsoft are concerned that a
properly written exploit could rapidly spread on the Internet as a worm
or virus in a fashion similar to Code Red or Slammer. (UPDATE: NO WORM
CODE HAS BEEN REPORTED; HOWEVER, AN INTERNET-WIDE INCREASE IN SCANNING
FOR VULNERABLE COMPUTERS OVER THE PAST SEVERAL DAYS REINFORCES THE
URGENCY FOR UPDATING AFFECTED SYSTEMS.)


IMPACT
The recently announced Remote Procedure Call (RPC) vulnerability in
computers running Microsoft Windows operating systems listed above could
be exploited to allow the execution of arbitrary code or could cause a
denial of service state in an unprotected computer. Because of the
significant percentage of Internet-connected computers running Windows
operating systems and using high speed connections (DSL or cable for
example), the potential exists for a worm or virus to propagate rapidly
across the Internet carrying payloads that might exploit other known
vulnerabilities in switching devices, routers, or servers.

DETAILS
There is a vulnerability in the part of RPC that deals with message
exchange over TCP/IP. The vulnerability results from the handling of
malformed messages. This particular vulnerability affects a Distributed
Component Object Model (DCOM) interface with RPC, which listens on RPC
enabled ports. This interface handles DCOM object activation requests
that are sent by client machines (such as Universal Naming Convention
(UNC) paths) to the server. An attacker who successfully exploited this
vulnerability would be able to run code with local system privileges on
an affected system. The attacker would be able to take any action on the
system, including installing programs, viewing changing or deleting
data, or creating new accounts with full privileges.

RECOMMENDATION
Due to the seriousness of the RPC vulnerability, DHS and Microsoft
encourage system administrators and computer owners to take this
opportunity to update vulnerable versions of Microsoft Windows operating
systems as soon as possible. Microsoft updates, workarounds, and
additional information are available at
http://microsoft.com/technet/treeview/default.asp?url=/technet/security/
bulletin/MS03-026.asp

DHS and Microsoft further suggest that Internet Service Providers and
network administrators consider blocking TCP and UDP ports 135, 139, and
445 for inbound connections unless absolutely needed for business or
operational purposes. 


Advisories recommend the immediate implementation of protective actions,
including best practices when available. DHS encourages recipients of
this advisory to report information concerning suspicious or criminal
activity to law enforcement or a DHS watch office. The DHS Information
Analysis and Infrastructure Protection watch offices may be contacted
at:

For private citizens and companies - Phone: (202) 323-3205,
1-888-585-9078,
Email: [EMAIL PROTECTED]; 
Online: http://www.nipc.gov/incident/cirr.htm
For telecommunications industry - Phone: (703) 607-4950 
Email: [EMAIL PROTECTED]
For Federal agencies/departments - Phone: (888) 282-0870
Email: [EMAIL PROTECTED]
Online: https://incidentreport.fedcirc.gov

Recipients located in Northern Virginia/Washington, DC may report
information concerning suspicious or criminal activity directly to me.

DHS intends to update this alert should it receive additional relevant
information, including information provided to it by the user community.
Based on this notification, no change to the Homeland Security Advisory
System (HSAS) is anticipated; the current HSAS level is YELLOW.


-----Original Message-----
From: Erik Sojka [mailto:[EMAIL PROTECTED] 
Sent: Tuesday, August 12, 2003 4:05 PM
To: Exchange Discussions
Subject: RE: ISP/Exchange Question


I didn't see anything on whitehouse.gov or ready.gov, but my counterpart
in Facilities just forwarded a BOMA memo mentioning such a warning
coming from DHS.  

Hopefully we are all already on alert for this virus, and are already
protected.  It's an old issue that should have been eliminated a while
ago...

> -----Original Message-----
> From: Steck, Herb [mailto:[EMAIL PROTECTED]
> Sent: Tuesday, August 12, 2003 5:53 PM
> To: Exchange Discussions
> Subject: ISP/Exchange Question
> 
> 
> Has anyone heard of the Dept. of Homeland security putting
> out an anouncement to ISP's to block TCP/UDP ports 135, 137, 445?
> 
> 
> "The information transmitted is intended only for the person
> or entity to which it is addressed and may contain 
> proprietary, confidential and/or legally privileged material. 
> Any review, retransmission, dissemination or other use of, or 
> taking of any action in reliance upon, this information by 
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> prohibited. If you received this in error, please contact the 
> sender and delete the material from all computers." 
> 
> 
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