Packeteer and Compaq Team to Provide WAN Application Performance Solution for Exchange Customers

Business Wire, August 7, 2000

Business Editors/High-Tech Writers

CUPERTINO, Calif.--(BUSINESS WIRE)--Aug. 7, 2000

Compaq Selects Packeteer(R) As Best-of-Breed Provider

for Business Solutions for Exchange Program

Packeteer(R), Inc. (Nasdaq:PKTR), a leading provider of Internet application infrastructure systems, today announced a partnership with Compaq (NYSE:CPQ), the leading integrator of Microsoft(R) Exchange(TM) in the enterprise market, through their Business Solutions for Exchange (BSE) program.

The Compaq BSE program chooses best-in-class partners to help customers enhance efficiency, improve workflow, and realize greater productivity in their Exchange environment. As a BSE partner, Packeteer offers Compaq's Microsoft Exchange customers the first comprehensive solution for ensuring application performance over wide-area networks (WAN) through its PacketShaper(R) product family, which is targeted at enterprise and Internet Service Provider (ISP) customers. PacketCare(TM), the company's new customer service and support program, is also included in the BSE program.

"The BSE program is a key element of Compaq's Knowledge Management & Messaging strategy, enabling us to provide best-of-breed solutions from our key partners," stated Lex Dekkers, Compaq's director for Knowledge Management & Messaging Solutions Group. "Packeteer's PacketShaper and PacketCare will enable us to offer more complete solutions for the Microsoft Exchange messaging platform to support mission-critical applications."

"This strategic partnership with Compaq showcases the market-leading technology and competitive value add of our application infrastructure solutions and services," stated Craig Elliot, president and CEO of Packeteer. "As a BSE partner, Packeteer brings application performance to Compaq's extensive customer base, who depend on them to provide reliable business solutions."

Packeteer's PacketShaper product series and PacketCare will be available immediately to Compaq customers through Compaq Global Services organization.

About PacketShaper and PacketCare

The PacketShaper family of bandwidth management solutions optimizes application performance over WANs and the Internet. PacketShaper discovers and classifies applications on the network, analyzes traffic patterns and measures response times, enforces policy-based bandwidth allocation and implements service-level agreements (SLAs), and generates reports on application behavior.

The PacketShaper product family includes the 1500 series, which supports up to 2 Mbps; the 2500 series, a modular platform that supports up to 10 Mbps; and the 4500 series, a high-availability and modular platform that supports up to 45 Mbps. The 4500 with factory-installed ISP Edition software is available for service providers.

Packeteer's new customer service and support program, PacketCare offers flexibility with a choice of two service packages or individual service offerings including software subscription, advance replacement, and/or extended warranty. Additionally, customers have the choice of coterminous contracts, simplified registration, fulfillment, and renewal processes.

About Packeteer

Packeteer (Nasdaq:PKTR) is a leading provider of Internet application infrastructure systems designed to enable businesses and service providers to ensure the quality of experience for networked applications and application services. Packeteer's advanced PacketWise(TM) software, the foundation of the company's innovative PacketShaper and AppVantage(TM) systems, integrates application discovery, analysis, control and reporting technologies that are required for proactive application-performance and bandwidth management.

Packeteer's products are deployed today by leading Fortune 1000 companies and service providers worldwide through an established network of more than 100 VARs, distributors and system integrators in more than 50 countries. In addition, PacketWise software is licensed by major communications industry partners who integrate the software into specific strategic networking solutions. For more information, contact Packeteer at 408/873-4400, fax 408/873-4410; or visit the Packeteer Web site at www.packeteer.com.

Safe Harbor Act Clause

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding Packeteer's expectations, beliefs, intentions, or strategies regarding the future. Forward-looking statements include express or implied statements regarding future revenues. All forward-looking statements included in this press release are based upon information available to Packeteer as of the date hereof, and Packeteer assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. See the risk factors described in the Company's form 10K filed with the SEC on March 23, 2000 and its Form 10-Qs and other reports filed from time to time with the Securities and Exchange Commission. Packeteer assumes no obligation to update the forward-looking information contained in this press release.