Preliminary Analyst Report Ranks NetScaler Among Top Three Revenue Leaders in High-Growth Application Acceleration Market

NetScaler, Inc., the global leader in high performance application delivery systems, today announced that it now ranks among the top three revenue leaders in the market for advanced network equipment platforms designed to accelerate enterprise applications. The new ranking comes as part of a preliminary market statistics report(1) by Gartner, which estimates 2004 revenue for this segment at $220 million, measured as part of an overall Application Acceleration market that reached approximately $1 billion last year. The Gartner report also noted that growth in this segment is being driven by innovators who are taking market share from traditional load balancing and content switching vendors.

"NetScaler has consistently been first to market with innovative solutions that dramatically enhance the performance of real-world enterprise applications," said B.V. Jagadeesh, president and CEO at NetScaler, Inc. "We are pleased that NetScaler has grown to become a dominant force in this high-growth space and that Gartner has recognized application acceleration as a mainstream enterprise market."

In Gartner's latest report, "2004 Preliminary Market Statistics: Application Acceleration Equipment Worldwide," the leading IT analyst firm projected that the innovative advanced platform market grew by more than 40 percent in the second half of 2004, nearly four times the rate of the traditional Layer 4 through 7 content switching market, which increased by just over 10 percent. The report noted that the overall Application Acceleration Equipment market will likely exceed $1 billion in 2004 and that strong growth is forecast for 2005 as well.

"This segment is populated by a number of innovative companies (both established and emerging) and is poised for continued rapid growth as customers seek to lower operating expenditure through data center consolidation," said Joe Skorupa, principal analyst, Gartner.

About NetScaler

NetScaler provides networking systems that enable the fast and secure delivery of applications by integrating a unique suite of optimization, security and switching capabilities. NetScaler's 9000 Series application delivery systems provide improved application performance and hardened security for many of the world's largest enterprises, content providers and e-commerce vendors, while greatly reducing total cost of ownership.

NetScaler headquarters are in San Jose, California. For more information, visit http://www.netscaler.com.

NetScaler is a trademark of NetScaler, Inc. in the United States and other countries. All other companies and products mentioned herein may be trademarks of their respective holders.

(1) Joe Skorupa, "2004 Preliminary Market Statistics: Application Acceleration Equipment Worldwide," Gartner, January 2005.

Contact: Stephanie Xavier NetScaler, Inc. (408) 678-1725 sxavier@netscaler.com Rachel Kim/Casey Lewis LEWIS PR for NetScaler, Inc. (415) 277-5400 NetScaler@lewispr.com