Prague , 22 nd of September 2004

1. Prague , 22nd of September 2004

2. Protects and accelerates key business applications Contains malicious, recreational, and other non-business traffic Maximizes network and application investments Packeteer… Optimizes WANs and the Internet for business applications Our intelligent appliances deliver an Application Traffic Management system at the LAN/WAN interface that…

3. Business Critical Applications • No disruption to existing applications or network infrastructure • Align network resources and application performance with business needs Front Office Back Office Web Site Supply Chain ERP Email Optimize Application Traffic Over Existing Networks “The technology division’s goal and J. Walter Thompson’s overall goals are unified now.” Jose Cedillo, Systems Director, J. Walter Thompson A WAN Optimization “Overlay” Application Traffic Management System

4. Global Presence • Proven effectiveness with hundreds of business-critical applications • Over 32,000 units shipped to over 5,000 customers • 700+ sales partners in 90+ countries • 24x7 global support • Partnerships • IBM Global Services, HP Services, AT&T, Equant, France Telecom, NTT, Telecom New Zealand, Samsung, Citrix, Extreme Networks, Polycom, Concord, BMC, Avaya… • Dozens of product awards worldwide

5. Profitable $90M cash reserves 240+ employees Packeteer founded PacketShaper 8500 $46.7M $41.1M $7.2M 1996 1998 2001 2002: Ranked by Forbes as the 5th fastest growing technology company based on 5-year growth 2003: Named to the Deloitte Technology Fast 500 for 661% growth during the previous 5 years Financially Sound IPO NASDAQ: PKTR PacketShaper Xpress $72.7M $55.0M $18.4M $1.4M 1997 1999 2000 2002 2003 PacketShaper 1000, 2000, 4000 PacketShaper 1500, 2500, 4500, 6500, PolicyCenter ReportCenter, PacketSeeker

6. Market Share Worldwide WAN Optimization Management Revenue by Vendor, 2003. (source IDC, 2004) “Others” comprise of vendors with 1% market share or less: Ipsum networks Packet design Proficient Rocksteady And other un-named companies with less than 1% market-share each

7. 30 Of The Global 50 Use Packeteer

8. More Packeteer Enterprise Customers

9. Communications & Service Provider Customers

10. DriscollCHILDREN'S HOSPITALCHILDREN'S MEDICAL CENTER OF SOUTH TEXAS Healthcare Payees/Suppliers Providers Universities

11. International Education Japan EMEA ASPAC

12. Business Depends On Networked Applications • Increasing IP-based application dependence on the WAN and Internet Business Analytics Transaction Processing ERP • Responsive applications are critical to success • Increasing application performance problems due to congestion at the LAN/WAN edge Sales Force Automation Data Warehousing CRM Document Management Supply Chain Automation Email

13. Broadband, Dialup Small Office Cellular, WiFi Mobile User Business applications must work for all users The LAN/WAN Mismatch Corporate Office Branch Office Frame Relay, Fractional T1, T1, MPLS, etc. Oracle Internet PeopleSoft High Speed LAN SAP Siebel

14. Web Email Voice and Video over IP Malicious and Recreational Traffic Oracle PeopleSoft SAP Siebel Malicious and Recreational Traffic • Even well designed networks are subject to attacks and congestion • Worms and viruses • Major software updates • Web traffic from major news events • Rich/streaming media and P2P • Internet radio • Large file transfers and email attachments

15. Temporary Ineffective Initial and recurring costs May not be possible Applications will consume all available bandwidth Bandwidth will not go to critical applications The WAN is the single largest recurring IT cost Higher speed links are not always available A Typical Response – Add More Bandwidth

16. A Typical Use Of Bandwidth Total Budget: $26.6M 14% of bandwidth is “business critical” (Oracle, Citrix, & TN3270) Email 20% / $5.3M File Transfers 9% / $2.4M Oracle 7% / $1.8M Streaming Media 8% / $2.1M Citrix 5% / $1.3M P2P 12% / $3.2M TN3270 2% / $500K Other 4% / $1M Internet Gaming 5% / $1.3M Web Browsing 28% / $7.5M 53% of bandwidth being used by recreational applications

17. X Increase budget by 50% to $39.9M for more bandwidth Business critical applications still only get 14% Increase $14.1M to $21.2M for recreational applications Adding Bandwidth Does Not Help 14% of bandwidth is “business critical” (Oracle, Citrix, & TN3270) Total Budget: $26.6M Email 20% / $5.3M File Transfers 9% / $2.4M Oracle 7% / $1.8M Streaming Media 8% / $2.1M Citrix 5% / $1.3M P2P 12% / $3.2M TN3270 2% / $500K Other 4% / $1M Internet Gaming 5% / $1.3M Web Browsing 28% / $7.5M 53% of bandwidth being used by recreational applications

18. Gartner Research Agrees When application performance is the key concern, throwing more bandwidth at the problem is often the wrong response. It will be more economical for enterprises to improve WAN performance by using WAN optimization technologies, rather than adding bandwidth. Gartner Research Note: “Enterprises Will Waste Money on Bandwidth in 2004”, 2 December 2003 Mission-critical networks can't survive without some congestion control and application priority management for critical traffic. Gartner Research Note: “Optimize Your Broadband WAN”, 15 September 2003

19. The META Group Agrees As users wait for the mythical "free and unlimited bandwidth" promised by utopian press reports, they face hard choices on how to optimize increasingly congested wide-area network (WAN) bandwidth, given increasing demand and budget cutbacks. Before upgrading WAN links, users can achieve significant savings by exploiting edge optimization solutions appropriate for their particular application/protocol mix. META Group Report: “Bandwidth Compression and Optimization”, 3 September 2003

20. Ace Insurance Chose Packeteer • UK-based global provider of property and casualty products • Global MPLS network with two data centers, mix of frame and ATM traffic, VPN network in parallel. • Total of 50 WAN links serving 11,000+ users • Looked for improved performance of business-critical applications such as Oracle and email • Traffic generated by worms and viruses impacting the performance of critical applications • Packeteer now on all WAN connections • Guaranteed the performance of key applications… • …and saved 14% of global WAN budget

21. Beckman Coulter Chose Packeteer • Global medical instrument company • Offices in 130 countries around the world • Over $2B in revenues in 2002 • Up to 75% of their WAN bandwidth was being consumed by non-business critical traffic • Jeopardizing plans for an enterprise-wide PeopleSoft rollout • Packeteer’s solution aligned bandwidth utilization with business priorities • Ensured a successful ERP rollout

22. J. Walter Thompson Chose Packeteer • One of the world’s largest advertising firms • 11,000 employees in 168 offices around the world • As much as 95% of their WAN bandwidth was being consumed by non-business traffic • Delayed email delivery was costing them business • Packeteer enabled efficient, reliable WAN and email communication • Avoided $72K in planned bandwidth upgrade costs at one site alone

23. DSE Chose Packeteer • Australian Department of Sustainability and Environment • In 2003 deployed a converged wide area network supporting data and voice/video conferencing over IP at 34 sites • Key application performance dropped dramatically • Packeteer improved application response times for Oracle financials from 30-40 seconds to only 3-4 seconds • Better alignment of network with operational objectives • “When the wildfires struck, we could immediately increase the priority of fire suppression applications. We couldn’t possibly have responded with the same speed using a routing platform. The only way to get granular enough to manage each application individually is to use Packeteer.” Andrew Paynter, Senior Technical Manager, DSE

24. LandAmerica Chose Packeteer • The 3rd largest title underwriter in the US • 10,000+ employees at 700 sites connected via frame-relay connections, total bandwidth investment exceeds $1.5M/month • Financial applications were seeing transaction delays, help-desk calls were on the rise • Packeteer optimized existing WAN infrastructure • Avoiding an estimated $600K/year in additional bandwidth costs • Further benefit seen with upcoming VoIP delpoyment • “I plan to install a Packeteer solution for that entire network to control their voice traffic over IP. Packeteer’s ability to classify and control IP telephony traffic is unmatched anywhere in the industry — period.” Lou Prestipino, WAN Design Architect, LandAmerica

25. Issues • Ensuring bandwidth for basic services • Scaling & traffic engineering with P2P • Containing virus and worm traffic • Building value (and the business): advanced services • VoIP, Video on demand streaming video and rich media content • Business services & differentiated service levels • Managing large subscriber bases • Sorting issues & managing across thousands of customers • Traffic Management Equipment • Effective testing & evaluation Bandwidth alone will not unleash the full economic potential of broadband, but it is a prerequisite for this. Carriers must ensure their budgets for network upgrades match their ambitions on the service side of the business, and should carefully consider how to obtain a defendable position in the broadband value chain. Gartner Group, Broadband Economics, December 5, 2003

26. Protect bandwidth & broadband economics Contain malicious traffic and P2P, minimize impact on shared resources Manage bi-directional nature of congestion Protect broadband economics to ensure sustainable and scaleable networks, fair access, and maintain reasonable costs Ensure critical traffic & enable new service revenues Provide QoS for voice and video traffic Protect important business applications Create multiple levels of service Simplify management of large subscriber bases and large installations Dynamically allocate & ensure bandwidth per POP with a few simple policies (not thousands) Centralize management for large unit installations Provide Visibility into Network Use and Application Performance Identify what traffic is running the network Identify users/abusers and top impacts Track utilization & provide detailed reporting Increase scalability Ensure effective traffic engineering Increase performance on VSAT network links Manage congestion Increase capacity with application-intelligent compression ‘Fast recovery’ mechanism for data lost in transmission Enhance security by providing in depth diagnostic, troubleshooting, and control Identify and contain virus and trojan traffic Protect network and performance, add to tiered security framework How Packeteer Applies

27. Web Application visibility provides knowledge Exchange Web Siebel Exchange Order Entry System Siebel Order Entry System Web Application control aligns network applications and resources with business needs Exchange Compression makes the network “bigger” and accelerates critical applications Siebel Order Entry System The Unique Value Of Packeteer’s System

28. “In two months of using Packeteer, the savings have already paid for the units.” Jose Cedillo, Systems Director, J. Walter Thompson “We’ve avoided unnecessary spending on bandwidth. More and more now, we are finding that we really can get everything we need with Packeteer.” Ron Van Dusen, Senior Network Systems Specialist, Beckman Coulter “Our current cost of WAN bandwidth is between $2.2 and $3 million per year right now. It would have cost us three times as much to solve some of the problems we were able to solve with the Packeteer solution.” Andrew Paynter, Senior Technical Manager, Australian Department of Sustainability and Environment ROI Justification • Align network usage with business priorities • Minimize business-critical application disruptions • Optimize application performance • Limit use of of recreational applications • Limit impact of malicious traffic • Avoid upgrading WAN and Internet connections • Reduce help-desk calls

29. Packeteer Complete Application Classification “Layer 7” Stateful Inspection Typical Network Device: Router, Probe, etc. Industry-Leading Application Discovery Applications Embedded in HTTP, Citrix, etc. Citrix, Oracle, VVoIP, SAP, KaZaA, etc. Applications HTTP/SSL, SMTP/POP3, FTP, etc. Dynamic Port 72280 Static Port 80 06/11 TCP/UDP IP 192.168.1.1 00D059B71F3E Link Layer

30. …industry-leading fine-grain application visibility • …industry-leading fine-grain application visibility, control • …industry-leading fine-grain application visibility, control and compression • All managed by our own central management platforms • All managed by our own central management platforms with integration into industry-standard platforms Industry-Leading Architecture • Industry-leading application intelligence yields…

31. Protects and accelerates key business applications Contains malicious, recreational, and other non-business traffic Maximizes network and application investments Packeteer… Optimizes WANs and the Internet for business applications Our intelligent appliances deliver an Application Traffic Management system at the LAN/WAN interface that…