Record Growth Propels NetScaler to No. 2 Market Share Position in New Analyst Report

NetScaler, Inc., the global leader in high performance application delivery systems, today announced that it is now ranked second in the rapidly growing market for Application Front End (AFE) products. This latest analysis was conducted by leading analyst firm APM Advisors as part of its recent report on the Application Front End market.(1) AFE products, which are often purchased to accelerate the speed of slow-performing business applications, represent integrated solutions that have evolved out of previous generations of server load balancers and Layer 4-7 content switches. Today's AFE systems -- also called Application Delivery systems by some industry observers -- are quickly being adopted as core application infrastructure solutions by major Global 2000 enterprises. As a result, this market is expected to grow by more than 75 percent in 2005, far outpacing the growth of traditional load balancing products.

According to the report, the Application Front End market moved solidly from the early adopter stage in 2003 to the mainstream growth stage in 2004, driven largely by the adoption of AFE products by large Global 2000 enterprises. This trend has also served to narrow the field of legitimate vendors competing for enterprise business. While the market initially included a wide range of smaller players, APM Advisors estimates that the top two vendors now command over 80 percent market share, with no other vendor holding more than a single-digit share. The current market leader, according to the report, is F5 Networks with 58 percent, while NetScaler is firmly entrenched in second at 24 percent, more than twice the share of its next nearest competitor.

"This report is yet one more indication that this market is exploding, and that the leading vendors are clearly beginning to break away from the pack," said B.V. Jagadeesh, president and CEO, NetScaler. "Today's demanding business applications must be delivered to users around the world with unparalleled speed, security and availability, a challenge that is often impossible with earlier generation traffic management equipment. NetScaler has continued to set the standard for accelerated application delivery on some of the world's most demanding high traffic networks. Today, our record growth is being driven by fast ramping demand from global enterprises which are seeking to improve the performance of critical business applications and ultimately, impact the bottom line."

"This highly competitive Application Front End market has matured over the past 18 months, and now we are finally seeing some real horsepower," said Lynn Nye, president of APM Advisors. "NetScaler has been in this from the beginning and we don't see any weaknesses in a market that is now growing at more than 75 percent year-over-year."

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 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) Perspective on the Application Front End Marketplace, APM Advisors, March 2005

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