Companies Want Corporate Video Delivery and Management Included in WAN Optimization

Business Wire,  May 5, 2008  

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Demands for Internal Video Distribution as Part of WAN Optimization Increase by 50% over Last Year; Now Required by 30% to 40% of Customers

SUNNYVALE, Calif. -- Blue Coat Systems, Inc. (Nasdaq:BCSI), the leader in WAN Application Delivery and Secure Web Gateway, today announced that internal studies it has conducted show that there has been a 50% increase in the number of prospective WAN optimization customers that now want corporate video delivery and management or "enterprise content delivery network" (eCDN) capabilities integrated with its WAN optimization solution. Now 30% to 40% of customers insist that the management and distribution of their own on-demand and live video to employees in branch offices be accomplished by the same WAN optimization appliance.

Enterprises and organizations are using on-demand video for safety and compliance, training and for purposes of company morale and education in increasing numbers. Major industry analyst firms have reported a marked increase in inquiries from enterprise clients about the proper deployment of corporate video. Companies also want to provide live video feeds of corporate events or addresses by top executives to their employees.

"With the popularity of YouTube and other Internet video, enterprises and organizations understand that short video segments make powerful and effective communications tools," said Bethany Mayer, senior vice president of Worldwide Marketing, Blue Coat Systems. "The big issue has been how to deploy video to branch office employees without overloading the Wide Area Network. Blue Coat believes that corporate video delivery and management should be an integral part of WAN optimization to provide quality video services that are cost-effective."

Blue Coat([R]) ProxySG([R]) appliances can deliver on-demand videos to branch offices during off-hours and save it for future viewing by a process called "pre-population." ProxySG appliances can also "cache" or save video requested from the headquarters location by a user in a branch office and store it locally for use by subsequent viewers. In the case of live video broadcasts, Blue Coat appliances can take a single stream of video and then split it locally into enough streams to serve all local viewers. The appliances can also "record" live video for future playback. The appliance's ability to identify individual users also enables the company to track which employees have watched required videos.

The same Blue Coat ProxySG appliances used for video delivery also provide WAN optimization to accelerate enterprise applications and file access in branch offices. In addition, the appliances stop malicious content from traversing the WAN and can control unauthorized applications. Blue Coat ProxySG appliances also protect data, users and applications from direct contact from the Internet and the introduction of viruses, spyware and other malware while providing granular control over the use of streaming media, peer-to-peer (P2P) file sharing, instant messaging (IM) and general Web surfing.

About Blue Coat Systems

Blue Coat secures Web communications and accelerates business applications across the distributed enterprise. Blue Coat's family of appliances and client-based solutions - deployed in branch offices, Internet gateways, end points, and data centers - provide intelligent points of policy-based control enabling IT organizations to optimize security and accelerate performance between users and applications. Blue Coat has installed more than 40,000 appliances worldwide. Blue Coat is headquartered in Sunnyvale, California, and can be reached at (408) 220-2200 or www.bluecoat.com.

FORWARD LOOKING STATEMENTS: The statements contained in this press release that are not purely historical are forward-looking statements, including statements regarding Blue Coat Systems' expectations, beliefs, intentions or strategies regarding the future, and including statements regarding the capabilities and expected performance of Blue Coat Systems' products. All forward-looking statements included in this press release are based upon information available to Blue Coat Systems as of the date hereof, and Blue Coat Systems 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. These and other risks relating to Blue Coat Systems' business are set forth in Blue Coat Systems' Form 10-K for the year ended April 30, 2007, and Form 10-Q for the quarter ended January 31, 2008, filed with the Securities and Exchange Commission.

Note: Blue Coat and other applicable product names are trademarks or registered trademarks of Blue Coat Systems, Inc. in the United States and other countries. All other trademarks, trade names or service marks used or mentioned herein belong to their respective owners.

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