Network Physics Triples Customer Base in 2004; New Product Capabilities, Expanded Channel and Strategic Partnerships Play Key Roles in Increased Revenues

Business Wire, Feb 8, 2005

MOUNTAIN VIEW, Calif. -- Network Physics, the leader in managing application infrastructure integrity, today announced that the company tripled its customer base in 2004. During the same period, the company enjoyed strong repeat sales from over one-third of its existing customer base with the successful rollout of its innovative NetSensory(TM) Enterprise Architecture in late 2004. The company's channel business grew by nearly 200 percent with the addition of channel partners in key geographic locations across Europe including Italy and the Nordics. Strategic partners, IBM and Capgemini, broadened their relationships with Network Physics as well, contributing positively to the company's bottom line. Companies making new purchases include Walmart.com, SBC SMARTpages.com, Turner Broadcasting System, Inc., and Hotwire.com.

Major customer wins in 2004 include multiple-system, enterprise-wide deployments in the financial services, healthcare, media/broadcasting, e-commerce, and retail/consumer product industries. Joining Network Physics' customer ranks are the world's largest insurer, AIG; the world's largest global electronic agency securities broker, Instinet; the UK's largest mortgage and savings provider, The Bank of Scotland; Sogei, S.p.A., IT solution partner for the Italian Ministry of Economy and Finance; Mizuho Securities Co. Ltd., the securities and investment banking arm of Japan's largest bank; and Le Groupe Credit du Nord, one of France's largest banks.

Many of the nation's leading healthcare organizations also deployed Network Physics systems, including Henry Ford Health System; The Robert Wood Johnson University Hospital; Spectrum Health; St. John Health; and Beth Israel Medical Center in Boston. Turner Broadcasting System, Inc., the leading major producer of global news, entertainment and programming products for the cable industry; Warner Brothers, Inc.; Hughes Network Systems, Inc. (HNS); and NOOS, the leading cable operator in France, successfully implemented Network Physics solutions. Continued expansion in the Internet commerce industry included customer wins at SBC SMARTpages.com, Hotwire.com (a leading Internet discount travel site); and Walmart.com. Joining the Henkel Group (a worldwide leader in consumer and household products) in the retail/consumer product markets are Apple Computer, Inc., and The Clorox Company.

"Customer demand is burgeoning because IT departments throughout the world are dealing with virtually the same challenge: how to improve end-users' experiences vis a vis faster, reliable application response times, while maintaining clear visibility into networks that are growing in complexity and coverage," said David Jones, president and CEO of Network Physics. "Customers are finding that literally within the first hour of installing NetSensory, they are able to identify network application problems they didn't even know existed. This visibility leads to faster troubleshooting and ultimately, more time for planning."

Additional 2004 milestones include:

--World-wide demand increasing: Sales in Europe in key areas such as the UK, France, Italy, Germany and the Nordics accelerated dramatically with a 500 percent increase in revenue.

--Strong channel contribution: New partnerships with leading global system integrators and high-value, network VARs including Selesta in Italy and Bemecon in the Nordics.

--Successful rollout of NetSensory Enterprise Architecture in late 2004: Nearly one-third of Q4 customers purchased this distributed architecture solution.

Expanding Channel and Partnerships

Network Physics is partnering with IBM across two major IBM technology programs, the Autonomic Computing initiative, and the Orchestration and Provisioning Automation Library (OPAL) initiative. Network Physics is the first network application infrastructure management vendor to be included in both IBM's Autonomic Computing and OPAL efforts. Network Physics also joined IBM's ISV Developers' Program. Several Network Physics appliances are implemented in IBM's Innovation Center in the San Francisco Bay Area.

About Network Physics

The Network Physics award-winning network application management solution helps enterprises ensure the integrity and security of the applications infrastructure by eliminating response-time problems across converging networks. The company's patented technology applies proven techniques from high-energy physics to assure the delivery of business-critical networked applications and services, and gives the IT staff unprecedented visibility into applications and services to better align IT operations with business priorities. This enables users to dramatically reduce the time and cost of new application and service delivery, improve service quality and uptime, align IT operations with business priorities, and reduce operating costs by finding and fixing problems faster. Network Physics was founded in March 1999, and its products are currently deployed at a wide range of Global 2000 corporations. For more information, please visit the company's web site at www.networkphysics.com.