Packeteer Intelligent Service Assurance Solution Drives Network Efficiencies

PacketShaper, Supported by Datacraft, Provides Granular Control and International Reporting, Increasing Bandwidth Efficiency by 5-10% at New Zealand ISP and Fibre Optic Backbone Provider. Packeteer® (NASDAQ: PKTR), the global leader in WAN application performance solutions, today announced that FX Networks, which supplies high performance Internet services via its New Zealand-wide fibre optic data network, has implemented Packeteer's PacketShaper® solution to gain more granular control over its international bandwidth to better tailor its services to meet customer needs and increase the yield on its network by 5-10 percent.

The increase in yield comes from the ability of Packeteer's Intelligent Service Assurance™ solutions to ensure higher levels of service for more customers on premium plans than was previously possible, without increasing international bandwidth. Packeteer's PacketShaper provides more granular control over FX Networks' international bandwidth than its previous solution while Packeteer's IntelligenceCenter™ offers more detailed reporting and statistical analysis.

"With Packeteer we can provision more precisely and better tailor our services to meet different customer requirements," said Jamie Baddeley, general manager, sales for FX Networks. "We can offer more premium grade services without necessarily increasing the amount of bandwidth, which gives a better yield on the infrastructure. If we can get 60Mbps more out of a 600Mbps pipe at a premium service level—and we figure we can get 5-10 percent better utilization—at our scale that is really meaningful."

Packeteer's solution, supported by reseller partner Datacraft, replaces a router-based traffic shaping solution that had reached its capacity limits and needed upgrading or replacing. The new solution needed to handle 300Mbps to 600Mbps of load within the short term, and 1Gbps in the medium term, at FX Networks' trans-Pacific Internet gateway.

FX Networks' engineering team rigorously evaluated four competing solutions, including a router-based solution from Cisco Systems and a network performance optimization and monitoring system from Exinda Networks, using actual customer data in a realistic test environment. They established nine critical criteria and ranked competing vendors from "one" to "four" in each. The criteria including load capability, seamless integration with a customer self-service portal, integration with automatic service provisioning, failsafe capability, time-of-day based traffic shaping, in-country technical support, dual upstream and downstream capabilities, size of deployed customer base and track record with comparable customers. Packeteer ranked number one in seven of the nine categories, scoring 11 overall, by far the lowest and best score.

"It wasn't about the business suiting the technology, it was about the technology suiting our business. We could just apply the Packeteer solution to the business as it stands with no impact to the customers," said Baddeley. "Not only that but Packeteer enabled significant architectural benefits. We have three primary product lines in the ISP area, tailored for small-to-medium businesses and large enterprises, and other ISPs in particular. Each has different attributes. Some are cheaper, while others offer bullet-proof international capacity. Packeteer allows us to maintain good service levels for our basic customer plans, while implementing appropriate superior grades of service for our premium plans, to make sure everyone gets what they pay for."

Packeteer also provides an upgrade path that will offer FX Networks additional economies of scale as its business continues to grow. "When your international bandwidth gets to the 622Mbps mark—the magic level for an ISP in the Pacific—then you need to start considering a US-based node," said Baddeley. "Then we will look at having another PacketShaper in the US and optimizing traffic across the trans-Pacific link. That is where you get the real yield benefits."

"FX Networks is a great example of an independent telecommunications provider which exploits new technology to provide high-performance, cost-effective customer services," said Phil Goodwin, solutions marketing manager for Datacraft NZ, which provides a range of integration and support services to FX Networks. "The new solution from Packeteer has the scale and capability to precisely tailor bandwidth to customer SLAs, providing economies to support FX Networks' continuing rapid growth."

VoIP Performance Management Survey Reveals Use of Wan Optimization Tools to Enable Best-In-Class VoIP Service

Companies Deemed Best-in-Class Twice as Likely to Deploy Network Monitoring and Prioritization to Address the Impact of Other Applications on VoIP Performance. In March 2008, Aberdeen Group surveyed 159 organizations to identify best practices for managing Voice-over-IP performance.

* Three key performance criteria were used to distinguish best-in-class companies: 1) average improvement in VoIP service quality; 2) average improvement in VoIP service availability; 3) improvements in ability to troubleshoot issues with VoIP performance in a timely manner.

* Best-in-class organizations reported 93% improvement in VoIP service quality; 95 percent average improvement in VoIP service availability; all improved their ability to troubleshoot VoIP performance issues expeditiously.

* Survey results show that firms enjoying best-in-class performance share common characteristics:

o Twice as likely to have tools in place for troubleshooting call failures compared to "laggards"

o Four-times more likely to be measuring call quality on a per-call basis as compared to laggards

o Four-times more likely to have the ability to assess the impact of other business applications on VoIP performance as compared to laggards

o The survey concludes that key enablers for "laggard" and "industry average" organizations to achieve best-in-class VoIP performance include:

o Tools for prioritization of network traffic

o Tools for troubleshooting call failures

o Alerts for issues with VoIP performance

o Unified platform for managing VoIP and overall network performance

o Tools for auto discovery of VoIP configuration changes

PACKETEER® RESPONSE

* With a new generation of mature, reliable solutions, VoIP is once again building market momentum. As vendors and customers begin to implement strategies to move from a traditional TDM- based circuit-switched PBX to a converged IP voice and data network, an increasing number of enterprise organizations are trying to understand how their existing network can handle the convergence of voice and data traffic without compromising performance and reliability.

* There are many variables that can impact VoIP quality and reliability, including the networking equipment used to carry voice and data traffic, the amount of bandwidth available to all sites and users, and the total amount of traffic moving across the network. The most significant point of congestion and potential compromise to voice quality is at the LAN/WAN boundary where voice and data transmissions are far more bandwidth-constrained. Packeteer® is focused on carefully controlling traffic at this congestion point with Intelligent Service Assurance™ (InSA)-based application delivery systems that enable companies to ensure optimal performance of voice and data applications across the WAN.

* WAN application delivery leader Packeteer provides all of the tools described in the Aberdeen survey to enable organizations to achieve best-in-class VoIP performance. More information on Packeteer's voice and video solutions is available at http://www.packeteer.com/solutions/voip.cfm.

MULTIMEDIA SUPPORT

For a summary of the Aberdeen report, titled "Benchmarking VoIP Performance Management," go to www.packeteer.com/aberdeenVoIPbenchmark. For the full report go to http://www.aberdeen.com/summary/report/benchmark/4657-RA-voip-performance-management.asp.

KEY WORDS

VoIP performance management, VoIP troubleshooting, VoIP service quality

Blue Coat to Acquire Packeteer to Offer Comprehensive Solution for WAN Optimization

Acquisition Extends Leadership in WAN Optimization Market. Blue Coat Systems, Inc. (Nasdaq: BCSI), the leader in WAN Application Delivery and Secure Web Gateway, today announced that it has signed a definitive agreement with Packeteer, Inc. (Nasdaq: PKTR), a leader in WAN optimization and WAN traffic prioritization technologies, under which Blue Coat will acquire Packeteer for $7.10 per share in cash, or approximately $268 million. The acquisition is expected to be accretive on a non-GAAP basis in the second full quarter of combined operations.

The acquisition is expected to deliver the following strategic benefits to Blue Coat:

* Blue Coat's ability to incorporate key Packeteer® technologies into the Blue Coat® ProxySG® family of appliances to provide increased application understanding and traffic prioritization capabilities

* Additional revenue from the sales, support and development of the PacketShaper product

* Increased penetration of the WAN optimization market with the addition of Packeteer's well-developed global sales distribution channel to Blue Coat's existing channel

* Expansion of Blue Coat sales opportunities through cross-selling to newly added Packeteer customers

* Extended leadership for Blue Coat in the WAN optimization market

* Significant cost savings and revenue synergies through organizational economies of scale

"WAN optimization is the starting point for adding the next layer of intelligence to the corporate network," said Brian NeSmith, president and chief executive officer, Blue Coat Systems. "The acquisition of Packeteer will enable us to extend our leadership in solving branch office application performance challenges and addressing security threats by adding an extensive, experienced sales channel, integrating our sales organizations and by reinvigorating the well-regarded PacketShaper product and adding it to our solution set. At the same time, we will begin to aggressively integrate Packeteer technologies with our own to continue building the next critical layer above the router."

Packeteer is a pioneer in network traffic prioritization and shaping and holds an extensive patent portfolio in these areas. Its technologies enable the identification of specific applications over the WAN and will enrich existing Blue Coat application intelligence technology. Packeteer has over 10,000 customers worldwide and an installed base of over 50,000 units. By acquiring Packeteer, Blue Coat will add 50 additional sales teams and over 1,400 channel partners to extend its reach into the WAN optimization market.

"Blue Coat has a proven history of efficiently and effectively integrating technologies and organizations, and can expeditiously add valuable Packeteer assets to Blue Coat solutions and operations upon closing the transaction," said Dave Côté, president and chief executive officer of Packeteer. "We believe our customers and channel partners all benefit from this move which results in having a more comprehensive solution for solving the application delivery challenges through advanced application discovery and the intelligent prioritization, security and control of business traffic across the WAN."

Added NeSmith, "Given the size of our respective global organizations and the complementary nature of our businesses, we will achieve substantial cost reductions and significant economies of scale almost immediately. Adding Packeteer's technology, expertise, channel partners and customer base will give Blue Coat a decisive competitive advantage that will help drive future business."

The acquisition will be effected through a tender offer for all of the outstanding shares of Packeteer, followed by a merger between Packeteer and a subsidiary of Blue Coat. The transaction is subject to customary conditions and is expected to close in the second quarter of calendar 2008.

Blue Coat will fund the acquisition through a combination of available cash and an $80 million convertible notes financing.

Merrill Lynch & Co. acted as exclusive financial advisor to Blue Coat in connection with the transaction. Davis Polk & Wardwell served as legal counsel to Blue Coat. UBS Securities acted as the exclusive financial advisor to Packeteer in the transaction, and DLA Piper US LLP served as legal counsel.

Conference Call and Webcast

Blue Coat will host a conference call to discuss the acquisition and related funding today at 8:00 a.m. Eastern time (5:00 a.m. Pacific time). A live Webcast of the call will also be available at http://www.bluecoat.com/aboutus/investor_relations. The live conference call can be accessed by dialing 1 (800) 947-5265 with the passcode 44648746.

Packeteer Offers Industry's Highest Performance Wan Optimization for AutoCAD 2008

Packeteer iShared and iShaper Solutions Enable 20x WAN Speed Improvements for Latest Versions of AutoCAD Applications with No User Performance Issues Reported. Packeteer, the global leader in WAN Application Delivery, today announced that it is able to deliver WAN performance improvements for AutoCAD versions 2007 and 2008 of 20x, surpassing competitive solutions which offer as little as 1.3x improvements. With Packeteer's iShared® and iShaper™ solutions, branch users do not suffer any performance degradation when upgrading from AutoCAD version 2004 to version 2007/2008. Users of other WAN Optimization solutions, such as those from Riverbed, have experienced problems with AutoCAD WAN file transfers after upgrading to the latest version of AutoCAD while Packeteer users are not reporting such issues.

"With Packeteer's iShaper and iShared solution the transition from earlier versions of AutoCAD to AutoCAD 2008 was seamless and trouble-free," said Vaughn Silar, president & CEO of Paragon Engineering Services, Inc. "In optimizing our AutoCAD 2008 files across the WAN between multiple offices, Packeteer was able to deliver the same high performance application visibility, acceleration and intelligent service assurance for which we have come to depend on them."

In tests using 80ms round trip latency over T1 lines, Packeteer found that an 8MB AutoCAD 2008 file took 140 seconds to save across the native WAN while that same file took only seven seconds to save with the iShaper solution, a performance improvement of 20x. Packeteer's iShaper solution performance was also not affected by ISP changes that Autodesk 2008 utilizes to optimize the size of the AutoCAD files upon file saves and which negatively impact the performance of other WAN Optimization solutions.

These results can be attributed to Packeteer's CIFS acceleration which employs a superior WAFS architecture that ensures local file server-like performance and is future-proofed against any protocol or file format changes for CIFS applications. With a combination of streaming, file object caching and byte data reduction technologies, the WAFS technology built into Packeteer's iShared and iShaper solutions always deliver the fastest user response times on file opens and saves.

"The success that Packeteer's customers have had with AutoCAD 2008 is testimony to our future-proof WAFS architecture and our ability to execute ahead of the curve to assure the high performance delivery any of any application to any user no matter where they are located," said Dave Côté, president and CEO of Packeteer. "We are proud of our ability to serve our many engineering, architecture and construction customers with the highest level of WAN Optimization for AutoCAD 2008 or any application that is critical to their business."

For more information on Packeteer's AutoCAD testing results or to find out more about Packeteer's iShared and iShaper solutions, contact info_cad@packeteer.com or call +1.408.873.4400.

Packeteer's iShaper Appliance Proclaimed "The New King Of CIFS" in Infoworld Lab Test

Packeteer's Unique Combination of Intelligent WAN Accelerator and Traffic Shaping is "Second to None" in Speed of CIFS Transfers; Declared Leader in Overall Performance. Packeteer , the global leader in WAN Application Delivery, today announced its iShaper™ 400 appliance has achieved an "Excellent" rating by InfoWorld Magazine's Test Center. Rating 8.8 on a scale of 10, the iShaper 400 excelled at performance, protocol support, reporting and value, scoring "9" in four out of the five respective categories.

Reviewer Keith Schultz said in his April 3, 2008 review, "Packeteer's iShaper is at its best optimizing CIFS traffic and shaping traffic on the WAN. Its overall optimization and acceleration is right there with the best of them; its CIFS performance is the best I've tested. Reporting too is top notch, and the single point of administration makes it easy to manage the appliance."

The complete product review can be read at: http://www.infoworld.com/article/08/04/03/14TC-packeteer-ishaper_1.html

iShaper is part of Packeteer's suite of Intelligent Service Assurance solutions, and is the only branch office services platform to combine intelligent acceleration, application classification, WAFS and native Microsoft file services in a single appliance. iShaper replaces acceleration-only and other point products with a unified device that optimizes data, voice and video traffic, and addresses customer demand to centralize data and storage and consolidate branch office server infrastructure.

"The iShaper's stellar product review in InfoWorld is a significant validation of Packeteer's technology leadership in the branch office application delivery market," said Dave Côté, president and CEO of Packeteer. "With the continuing growth of distributed organizations worldwide, there is a corresponding need to deploy best-in-class solutions that support application delivery to any user, anytime, anywhere. Our iShaper appliance is playing a vital role in fulfilling this global need."

For a live demonstration of Packeteer's iShaper product, visit Packeteer in the Microsoft Storage Partner Pavilion, Kiosk #9 at Storage Networking World 2008, Rosen Shingle Creek Resort, Orlando, Florida.

Packeteer Enables FS-Elliott to Centralize IT Operations

Leading Air Compressor Manufacturer Deploys iShaper and iShared Solutions to Optimize VoIP and Intelligently Speed WAN Application Delivery. Packeteer FS-Elliott, a leading manufacturer of air compressors and control systems, is deploying iShaper™ and iShared® systems to intelligently improve and assure application and service performance over their existing enterprise WAN, while consolidating remote servers into a centralized datacenter.

FS-Elliott is headquartered in Export, Pa., with sales and service offices in Houston, London, Los Angeles and Singapore. All engineering, marketing and administrative functions are centralized in the company's datacenter in Export. In an attempt to improve WAN performance at its satellite offices, FS-Elliott implemented a centralized Citrix solution for all Microsoft Office and email applications. But the performance gains in FS-Elliot's London office were insufficient and the company was forced to install a remote file server which meant that FS-Elliot would have to deviate from the centralized infrastructure management philosophy that allows them to manage a global IT footprint with very minimal staff.

"We quickly found out that Citrix really offers no performance gains in a distributed environment, especially with the additional latency involved between the U.S. and the U.K.," explained Jason Vanzin, IT manager at FS-Elliott. "Our London users struggled with the application sluggishness, and complained constantly."

Part of the problem was that the London office was also using Skype for all voice over IP (VoIP) communications, which was competing for the relatively low bandwidth over the DSL connection. Faced with a costly upgrade in WAN bandwidth, FS-Elliott began investigating WAN optimization solutions and contacted Packeteer. After recognizing the problem, Packeteer offered to install an iShared system for evaluation, and the company experienced an immediate boost in performance. Packeteer recommended installing iShared appliances at the satellite locations, with the iShaper solution installed at the headquarters. By caching content at the satellite offices and utilizing Packeteer's acceleration, optimization and bandwidth shaping technology, FS-Elliott was able to assure application performance with far better response times for Microsoft Office, Skype and other applications determined to be business critical. According to Vanzin, "Tasks that used to take minutes to complete before with Microsoft Office or email can now be performed in seconds with the Packeteer solution installed."

iShared's Wide Area File Services (WAFS) is a true distributed file system that combines file integrity features, such as read-ahead and file differencing, with WAN bandwidth optimization features, including application-intelligent caching, TCP acceleration and data reduction through wide-dictionary compression. iShared's technology provides real-time, read/write access in native modes for both the Common Internet File System (CIFS) and the Network File System (NFS) via the WAN, enabling seamless operation with challenging applications like Citrix.

"I'm impressed with what we've been able to accomplish so quickly and with so little effort. We're now fully centralized, VoIP quality has improved dramatically, and we managed to do all of that without being forced to upgrade our WAN links," Jason said. FS-Elliott's IT department consists of only two people charged with maintaining the company's network and all applications. "We expect to tap the full potential of the iShaper and iShared systems over time, but the initial investment is already well on the way to paying for itself with fewer help desk calls from irate users and improved productivity for all users."

Packeteer Board Rejects Elliott Offer

Recommends Stockholders not Tender Shares and Adopts Limited Duration Stockholders Rights Plan. Packeteer, Inc. the global leader in WAN application performance solutions, today announced that its Board of Directors, after a thorough review with the assistance of its financial and legal advisors, unanimously determined that the $5.50 per share unsolicited conditional cash tender offer from Elliott Associates, L.P. ("Elliott"), is contrary to the best interests of the Company's stockholders. Accordingly, the Board recommends that stockholders reject the Elliott offer and not tender any of their shares to Elliot. The basis for the Board's unanimous decision and recommendation is set forth in the Company's Schedule 14D-9 filed today with the Securities and Exchange Commission.

The Company also announced that the Board had adopted a stockholders rights plan ("Rights Plan") with a one year duration. Under the Rights Plan, stockholders of record at the close of business on April 14, 2008 will receive one share purchase Right for each share of Packeteer, Inc. Common Stock held on that date. If any person or group acquires 15% or more of Packeteer, Inc.'s Common Stock without prior Board approval, there would be a triggering event causing significant dilution in the voting power of such person or group. The Rights Plan, which is similar to the rights plans of many other public companies, will continue in effect until March 31, 2009, unless earlier redeemed or terminated by Packeteer, as provided in the Rights Plan.

The Board also confirmed that it was exploring alternatives to maximize value for stockholders, which may include a business combination with third parties or with Elliott, remaining independent, or other strategic or financial alternatives that could deliver higher stockholder value than the current Elliott tender offer. The Company has received indications of interest from, and conducted discussions with, various third parties both prior to and following announcement of the Elliott tender offer, as further described in the Company's Schedule 14D-9.

Reasons for the Board's Recommendation

In arriving at its decision regarding the Elliott tender offer, the Board of Directors considered numerous factors, including but not limited to the following:

* The Board has recently commenced a review of the Company's strategic alternatives, and believes that if the Board determines that a sale of the Company or a strategic business combination is in the best interests of the stockholders of the Company, the Company is well-positioned to negotiate a transaction with a value greater than the Elliott tender offer.

* If the Company's operating plan for fiscal 2008 is achieved, the Board believes that the Company's stand-alone operations will produce significantly greater value for the stockholders than that provided by the Elliott tender offer.

* The Elliott tender offer does not reflect the synergy value that may be obtained from a strategic combination.

* The Elliott tender offer is coercive to Packeteer stockholders and creates a liquidity risk for stockholders who do not tender.

* The Elliott tender offer is highly conditional.

UBS Investment Bank is acting as financial advisor to the Company and DLA Piper US LLP is acting as legal advisor.

In connection with the Elliott tender offer, the Company has filed with the Securities Exchange Commission a Solicitation/Recommendation Statement on Schedule 14D-9 (the "Schedule 14D-9"). The Company's stockholders should read carefully the Schedule 14D-9 (including any amendments or supplements thereto) prior to making any decisions with respect to the Elliott tender offer because it contains important information. Free copies of the Schedule 14D-9 and the related amendments or supplements thereto that the Company has filed with the SEC are available at the SEC's website at www.sec.gov.

Investor Contact:
David Yntema
Chief Financial Officer
408-873-4518
dyntema@packteer.com

Packeteer Solution Delivers Intelligent Application Optimization and Acceleration at Trade Me

Packeteer PacketShaper Provided by Hewlett-Packard Delivers Intelligent Service Assurance for 24x7 Business Continuity on New Zealand's Busiest Website. Packeteer, the global leader in WAN application performance solutions, today announced that Trade Me, New Zealand's leading ecommerce business, has accelerated and optimized the traffic between its New Zealand data centers using Packeteer's PacketShaper® solutions to more efficiently ensure business continuity.

With support from Hewlett-Packard New Zealand—a Packeteer Global Solutions Partner—Trade Me has deployed four PacketShaper® 10000 WAN optimization appliances. Using a combination of intelligent application optimization and acceleration the Packeteer solution has reduced the load on Trade Me's Auckland-Wellington link by 60-70 percent and halved the time taken to run the daily backup of its primary site from seven hours to 3.5 hours.

Trade Me operates New Zealand's busiest website. With around 1.1 million current listings and 1.9 million active members, it serves around 50 million pages to over 400,000 people each day to its sites, which are available 24 hours a day, seven days a week.

Trade Me maintains this high level of business continuity through the constant replication of data between its Auckland and Wellington data centers and daily backups of its core site. The company runs an active-active solution with external Web traffic shared equally between its Auckland and Wellington data centers. If one site becomes unavailable, the other continues to serve Trade Me traffic.

Prior to installing Packeteer's solutions, Trade Me's daily backup from its core site was taking seven hours, starting at 6:00 a.m. each morning and running through into the early afternoon. This placed an unacceptable load on the Auckland to Wellington link, which also carries transactional traffic such as site-to-site database queries and traffic related to data replication which ensures the two sites remain in synch.

Trade Me evaluated a number of different solutions to its data replication and backup problem, including increasing bandwidth, prioritizing traffic using network routers and deploying WAN optimization appliances.

Increasing bandwidth was ruled out because it would have increased ongoing operational expenditures, with no guarantee that the problem would not re-occur in the future as data volumes continued to increase. Router-based traffic prioritization was also rejected. It would not offer the same levels of application traffic visibility, reporting, acceleration and ease of use of a comprehensive WAN optimization solution.

Of the WAN optimization vendors evaluated, Packeteer was chosen because of its Intelligent Service Assurance™ approach to WAN optimization which provides superior network application visibility, reporting and acceleration. Packeteer was able to document the performance of its solution and supplied evaluation units so Trade Me could pilot the solution prior to purchase. By identifying transactional and back up traffic and then applying compression, acceleration and bandwidth shaping techniques, Packeteer's PacketShaper solution ensured that Trade Me's data centers remained in sync while maintaining the high performance delivery of the traffic that is critical to the company's auction site.

"Packeteer simplifies the management of the solution. It shows all the traffic and breaks it down by application so you can apply a shaping policy," said Allister Maguire, network specialist for Trade Me's infrastructure team. "The GUI interface on the PacketShaper is a lot simpler than the command line interface on the router. Setting priorities for a particular application or user is a lot easier. It is so easy that anyone in the infrastructure team can be trained to do it."

For now, Trade Me has avoided the ongoing operational expenditure involved in increasing bandwidth on its Auckland-Wellington link. It will, however, have to upgrade bandwidth in the future. When it does, the Packeteer solution will scale to accommodate the increased bandwidth and guarantee that it is applied to the right applications in the right way at the right time to efficiently maintain Trade Me's business continuity.

"The solution we have will scale considerably without major changes which will be a benefit to us," said Maguire. "At some point we will have to increase bandwidth. With Packeteer, we can make the best use of whatever extra bandwidth we purchase. Our daily backups, for example, will be able to use all of the available bandwidth without affecting our other applications."

"Packeteer's WAN optimization solution was the best way to extend Trade Me's business continuity infrastructure," said Paul Howe, commercial account manager for Hewlett-Packard. "The solution provides excellent network visibility and reporting and adds a range of sophisticated acceleration and prioritization technologies without introducing a significant management overhead."

Packeteer Featured in Microsoft Heroes Happen Here Global Launch

Industry's First Windows-Based WAN Optimization Vendor Highlighted in Portrait Book and at Heroes Happen Here Launch Event. Packeteer, the global leader in WAN Application Delivery, today announced that it has been featured in the Windows Server 2008 Heroes Happen Here Global Launch Wave. This honor highlights companies that have partnered with Microsoft to create solutions and cutting-edge applications that keep global commerce and industry running.

"Packeteer's participation in the Heroes Happen Here Global Launch wave is indicative of our status as the industry's first Windows-based WAN Optimization solution," said Dave Côté, president and CEO of Packeteer. "This honor, along with Packeteer's growth in revenue from Microsoft-based products and joint marketing and product roadmap work are yet just a few examples of our continued close relationship with Microsoft."

"While we are honored to be selected to part of this global launch, Packeteer will surely not rest on its success with current Microsoft-based products," said Shirish Phatak, CTO WAFS technology, Packeteer. "Our close development plans with Microsoft include the release of a Windows Server 2008 based platform that entails integration with Compound TCP (CTCP)—the next generation TCP/IP stack, Version 2.0 of Server Message Block (SMB)—the evolution of Windows file sharing protocol, Hyper-V, the next generation hypervisor-based server virtualization technology, Read-Only Domain Controller (RODC) and Network Access Protection (NAP). These plans are ongoing and designed to further our position as the industry leader in Microsoft-based WAN Optimization products."

"With the Heroes Happen Here global launch, we're highlighting the outstanding work partners, IT professionals, and developers do every day to create solutions and cutting-edge applications that bring real business value to companies." said Joseph Landes, director of Window Server product management at Microsoft Corp." Microsoft is proud to work with companies like Packeteer who are dedicated to delivering high-quality solutions for ever-changing business needs."

Loyola College Deploys Packeteer Intelligence

PacketShaper10000 Enables Loyola to Balance Bandwidth-Intensive Academic and Recreational Traffic to Meet Faculty, Staff and Student Needs. Packeteer, the global leader in WAN Application Delivery, today announced that Loyola College in Maryland, a comprehensive university with campuses in Baltimore City and neighboring Baltimore and Howard counties, has migrated to Packeteer's top-of-the-line PacketShaper® 10000 in preparation for a major network upgrade that could quadruple bandwidth to as much as 500 Mbps. The college will rely on the PacketShaper 10000 and Packeteer's strategy of Intelligent Service Assurance™ to intelligently manage and assure performance for Loyola's increasingly complex mix of business-critical application services, including streaming media-based academic content, administrative functions and bandwidth-intensive recreational traffic.

Loyola has used PacketShapers for nearly a decade, adding capacity and taking advantage of the system's growth path as its network grew. The original PacketShaper was used primarily to get control of peer-to-peer (P2P) traffic. Recently, the college has prioritized its more critical applications for the faculty and staff and streaming media of academic content. The current migration to the PacketShaper 10000 was made in anticipation of an upgrade from the existing 150 Mbps WAN link to one with 400-500 Mbps. With a capacity of up to 400,000 concurrent flows and a maximum throughput of 1 Gbps, Loyola expects the PacketShaper 10000 will meet its needs well into the future. The addition of a LAN Expansion Module (LEM) will also enable the college to provide a redundant link to the Internet.

"The PacketShaper is an indispensable tool for managing and reporting the constant growth in bandwidth demand across our diverse set of applications," says Patrick Donohue, Loyola's network systems engineer. "With the deep visibility provided by the PacketShaper we know exactly which applications are running at any point in time, and can adjust priorities on the fly to deliver better performance for the most critical ones."

Loyola continues to hold all P2P traffic in check, while allowing other forms of recreational traffic, to avoid congestion on the network. Using the PacketShaper, top priority is given to web server traffic facing the outbound link as well as thresholds for designated critical inbound connections necessary to support the college's network identity. In addition to the traditional Web, email, instant messaging and administrative applications, the college also supports a student portal (the MyLoyola Blackboard), an online registration system, and centralized data storage for all students and faculty.


"Our network services department shares many of the same needs as an ISP as we serve a community with the population of a small city," Donohue said. The college has some 5,000 students with over 80 percent of the undergraduates residing on campus. The Residence Hall Network, or RezNet, provides a high-speed connection to both the campus LAN and the Internet for each student. Wireless Internet access is also available for students and faculty throughout the campus.


Donohue described the mission of the network services department as meeting the network technology needs of today for both academic and recreational applications. "The PacketShaper technology has enabled us to successfully achieve this mission," Donohue emphatically stated. "Students today not only want to study online, they expect to be able to get their entertainment online, particularly through interactive gaming, streaming media, and social networking. A modern collegiate network must be able to support work and play as many more traditional services, like cable TV and telecommunications, become converged onto an expanding data network with growing options of connectivity. The PacketShaper enables us to balance these and other competing demands very easily and cost-effectively."

Packeteer Advises Stockholders to Take No Action in Response to Elliott Associates Offer

CUPERTINO, Calif. - March 20, 2008 - Packeteer®, Inc. (NASDAQ: PKTR), the global leader in WAN application performance solutions, today announced that its Board of Directors recommended that Packeteer stockholders take no action at this time in response to the announcement by Elliott Associates, L.P. that it has made an unsolicited conditional tender offer to acquire all of Packeteer's outstanding shares of common stock for $5.50 per share in cash.


Consistent with its fiduciary duties, and in consultation with its independent financial and legal advisors, Packeteer will review and consider the Elliot Associates offer, and within 10 business days, will advise Packeteer's stockholders of the Board's position regarding the offer as well as its reasons for that position.


UBS Investment Bank is acting as financial advisor to Packeteer and DLA Piper (US) LLP is acting as legal advisor.


Investor Contact:

David Yntema

Chief Financial Officer

4088734518

dyntema@packteer.com


Investor Contact:
David Yntema
Chief Financial Officer
408-873-4518
dyntema@packteer.com