Acme Packet Growth Reaches New Peaks in 2005; Acme Packet extends leadership in session border control category; revenue grows 133% over 2004.

BURLINGTON, Mass. -- Acme Packet(R), the leader in session border control solutions, today announced that 2005 was a record year in all dimensions of its business. Highlights of Acme Packet's 2005 growth over 2004 include:

--Revenue: 133% increase

--Unit shipments: 72% increase

--Service provider customers: 176% increase; added over 130 new customers, including 40 tier 1 service providers, bringing the total customer count to 210 in 46 countries

--Distribution partners: extended global reach with 10 new distribution partners, bringing the total to 28 distribution partners that now market, sell and support Acme Packet

--Employees: 52% increase; moved into larger corporate headquarters in Burlington, MA and expanded presence to 25 cities in 17 countries

In 2005, Acme Packet also extended its leadership in the areas of customer quality, vision, product capabilities and industry recognition:

--Customer leadership: announced tier one customer wins including BT 21st Century Network, China Unicom, Earthlink, Hanaro, Telefonica de Espana, Telefonica Moviles, and Telefonica International, Telenor and Telstra

--Vision & product leadership: led the industry in defining and delivering SBC security requirements including DoS/DDoS protection, outlined SBC roles and functions in next-gen IMS/ETSI TIPSAN architectures, delivered lawful intercept capabilities and policy server integration and introduced the Net-Net 9000 next-gen SBC platform

--Industry leadership: awarded Frost & Sullivan's 2005 Award for Market Leadership and 2006 Award for IP Communications Carrier Infrastructure Company, recognized in Infonetics Research's survey as the leading SBC vendor installed and being evaluated, named to the pulver 100 list for the fourth straight year and named to the Red Herring 100 Private Companies of North America 

"Acme Packet had a banner year in 2005," declared Andy Ory, president and CEO, Acme Packet. "Our growth numbers reflect a number of great trends--the rapid roll-out of many types of VoIP services worldwide, high-levels of customer acquisition by our service provider customers and by Acme Packet, increased project sizes requiring higher capacity SBCs and increased employee productivity. All these indicators reflect our ability to satisfy a burgeoning market opportunity."

"Since session border control functionality is a key part of all next generation IP architectures including IMS, PacketCable and ETSI TISPAN, we expect the SBC market to reach $1.2 billion worldwide in 2008," said Brian Partridge, Senior Analyst with Yankee Group. "We view Acme Packet as the SBC market leader in terms of both market share and the innovation and performance found in their Net-Net family of products."

According to Bob Hower, General Partner at Advanced Technology Ventures, "With Acme Packet's vision, management team, distribution partners and market-leading Net-Net product family, the company continues to set the pace in the session border controller market. Their customer list is second to none, as service providers look to Acme Packet when they need to deliver trusted, high quality interactive IP communication services."

About Acme Packet

Acme Packet, the leader in session border control solutions, enables service providers to deliver premium, interactive communications--voice, video and multimedia sessions--across IP network borders. Our Net-Net family has been selected by 210 service providers, including 21 of the top 25 wireline and wireless providers in the world, to satisfy critical security, service assurance and regulatory requirements in wireline, cable and wireless networks. These deployments support all applications--from VoIP trunking to hosted enterprise and residential services; all protocols--SIP, H.323, MGCP/NCS and H.248; and all border points--interconnect, access network and data center. For more information, contact us at +1 781.328.4400, or visit www.acmepacket.com.