Network Physics Partners Program Grows 214 Percent; Application Performance Insight Leader Attributes Record Second Quarter to Strength of Partner Program and Increased Demand for Its Industry-Leading Technology

Business Wire, July 18, 2006

MOUNTAIN VIEW, Calif. -- Network Physics, the leader in application performance insight, today announced that its Gold Partner reseller program has grown 214 percent since the company first committed to an exclusive channel sales strategy in January. The company says it will continue to aggressively recruit qualified reseller partners, and that it is expanding its sales and marketing programs to further promote the success of its reseller partners. As a result of this phenomenal growth and the increased demand for its industry-leading technology, the privately held company realized record-breaking second quarter bookings of 250 percent over same quarter bookings in 2005. Current quarter performance represents substantial shippable backlogs for the first time in the company's history.

The company has inked deals with reseller networking experts located around the world, including All Trade, APPTEKS (formerly ATS, Advanced Technology & Solutions), Aspera Technologies, Aspire Technology Partners, CA Business Partners, Connecting Point, Datec Inc., DDS Daten und Diagnose Systeme GmbH, Heavy Water, Interview Network Services, Network Plus, NextiraOne, OSS Services Ltd., Phoenix Datacom, Pomeroy IT Solutions, ShoreGroup, Structured Communication Systems Inc., Success Group International (SGI), Syscom Technologies, TELECOMERS, Tiered Network Solutions and Unique Digital.

During the quarter, the company's partners made several of the largest sales transactions in the company's history to several major Fortune 100 enterprise and large government agencies. The company's newly expanded presence in the mid-tier market, where the company predicts it will see the most robust growth in the future, delivered sales to state/local governments, school districts/universities, medical, manufacturing, financial services, legal, public utilities, network services among other vertical segments.

"The NetSensory product line is an easy sell to medium-sized businesses," says David Yandry, CEO of Texas-based reseller, Acclaim Networks, LLC. "Mid-sized companies have the strongest need for more advanced application performance insight solutions, but they typically find enterprise-class products require lengthy deployments, are frequently too complex, and pricey."

Network Physics reported that many of the quarter's transactions were won in head-to-head contests with key competitors including NetScout Systems, Inc. (NTCT). "NetSensory has a significant advantage in price and performance over competitive legacy systems, and customers are recognizing the difference," says Scott Safe, vice president of Marketing at Network Physics. "Customers no longer need to deploy probes everywhere, which require constant upgrades as the network fabric changes. More importantly, as network managers are focusing more on improving the application end-user experience, they are choosing Network Physics. Customers view our Gold Partners as heroes, which helps build brand loyalty and profits for our partners at the same time."

Network Physics also announced several additions to its already successful Partners program. First, the company introduced a new Partner Portal, enabling deal registration, lead management and sales tools as key components of interactions with Gold Partners. "Being successful with a product requires close collaboration with the vendor," says Yandry. "The Network Physics partner portal is already a key driver for our close working relationship with Network Physics' sales, marketing and technical staffs. We can inform each other of our progress with each client -- tracking status, competitive issues, and customer requirements -- in a timely and effective manner." The Partner Portal is available to all Network Physics Gold resellers at no charge. In addition, the company now offers additional incentives as part of its innovative demonstration unit program that doesn't require upfront investment, to enable resellers to more rapidly grow their businesses.

When Network Physics announced its exclusive channel sales strategy, which runs counter to the traditional direct-sales strategy commonly used by network management tool vendors, it also introduced its NP-2000 NetSensory Professional with Insights. This application performance insight appliance is priced below $10,000, providing channel partners with network application solutions designed for the needs of both large enterprise users and medium-sized enterprise IT staffs.

About Network Physics

Network Physics' NetSensory(TM) application performance insight appliances enable enterprise IT staff to defend the network against "the network is slow" complaints, and deliver the fastest time to value in the industry with the unique NetSensory Insights, which enable the company's rapidly-growing network of solution and channel partners to quickly adapt the user interface to customers' specific needs. The company's patented technology delivers over 60 real-time metrics in their business context, giving IT staff a unique "barometer" of application performance for early detection of problems and an understanding of their business impact. Although the easily-installed, non-intrusive NetSensory appliances require no agents, they can monitor end-to-end performance across the largest and most complex networks, allowing enterprises to audit, baseline, troubleshoot, secure, and optimize their application infrastructure to assure its integrity and security. Network Physics products are currently deployed at hundreds of mid-size and Global 2000 organizations, including world leaders in the financial, health care, manufacturing, media, and retail sectors. For more information, please visit the company's web site at www.networkphysics.com.