Arbor Networks Ends 2005 with Record Growth; Industry Awards, Increased Revenue, Executive Appointments, and Global Fingerprint Sharing Alliance Highlight 2005.

LEXINGTON, Mass. -- Arbor Networks(R), a leader in network security, today announced that it closed a record year in 2005 by increasing revenues by 50 percent over 2004, growing its employee base by 30 percent, and expanding its presence into 48 countries.

Highlights of Arbor Networks' 2005 performance include:

--Inc. 500 Award - Arbor Networks was named the 9th fastest-growing private company in the United States and honoured with the Inc. 500 Award for three-year growth of over 4,651%.

--Active Threat Feed (ATF) - Arbor Networks launched the first and only enterprise Active Threat Feed (ATF) security service in 2005, which gives network operators an instant identification of emerging threats that are targeting their company's network. Arbor Networks is the only company to provide enterprises with a threat response service that automatically updates corporate customer networks with behavioral fingerprints of new cyber threats.

--Fingerprint Sharing Alliance - In 2005, Arbor Networks founded the first and only global Fingerprint Sharing Alliance to help service providers worldwide automatically share cyber attack fingerprints, enabling them to stop worldwide Internet attacks faster and closer to their source. To date, the Alliance has doubled in size to include 32 members, some of which are: Cisco Systems, MCI, British Telecom, Cable & Wireless and China Netcom.

"Arbor Networks has finished another record year," said Jack Boyle, CEO for Arbor Networks. "Not only did we increase revenues significantly in 2005, we also took a leadership role in organizing the global Fingerprint Sharing Alliance, which helps service providers worldwide to collaboratively thwart global Internet attacks. In 2006, we are looking forward to growing our product line, as well as increasing our channel distribution, our partnerships and our market share."

Other highlights for 2005 include:

Product Advancements

The company continued to enhance its portfolio of Arbor Peakflow appliances by introducing advancements including Arbor Peakflow User Tracking, which allows security professionals to see where anomalous traffic patterns and cyber attacks originate on the network, down to the employee.

Industry Research

Having completed its first worldwide Internet Service Provider (ISP) security study, Arbor anticipates that it will be able to better assist ISPs as they make decisions on how to protect their mission-critical infrastructure. A comprehensive study, the report uncovered service providers' greatest security worries and illuminated some of these security challenges that take place behind the scenes.

Key Executive Appointments

Building upon existing internal leadership, Arbor made two strategic appointments in 2005, CEO Jack Boyle and Vice President of Marketing Tina Stewart. A seasoned executive, Mr. Boyle has successfully led high growth companies and small start-ups as well as multi-national enterprises and has brought to Arbor more than 30 years of expertise in the networking, service provider and enterprise industries. A security, telecommunications and networking industry veteran, Ms. Stewart came to Arbor Networks with nearly 20 years of expertise in the network security and network management markets. Together their leadership will drive Arbor Networks to the next level.

Industry Awards

Arbor Networks was honored with several prestigious awards in 2005, including a No. 9 overall ranking on Inc. Magazine's Inc. 500 list, Red Herring's Top Ten Companies to Watch and the Deloitte Fast 50 Rising Star. Arbor Networks customer, American Water, was listed on the InfoWorld 100 for its use of Arbor Peakflow X, the company's enterprise network intrusion prevention appliance. Additionally, Arbor founder Dr. Farnam Jahanian, received the first annual Governor's University Award for Commercialization Excellence (U-ACE) in recognition of successful commercialization of technology stemming from the research and entrepreneurial efforts of researchers at Michigan's public universities.

About Arbor Networks

Arbor Networks ensures the security and operational integrity of the world's most critical networks. Arbor's solutions are based on the proven Peakflow platform, intelligent technology for network-wide data collection, analysis, anomaly detection, and threat mitigation. Arbor Peakflow provides real-time views of network activity enabling organizations to instantly protect against phishing, botnets, DDoS attacks, worms, insider misuse, and traffic and routing instability, as well as segment and harden networks from future threats. Arbor Peakflow successfully prevents costly downtime, network cleanup, and loss of customer confidence. Arbor Networks is headquartered in Lexington, MA, with a research and development office in Ann Arbor, MI and overseas headquarters in London and Beijing. For more information, go to www.arbornetworks.com.

Note to Editors: Arbor Networks and Peakflow are registered trademarks and the Arbor Networks logo and ArbOS are trademarks of Arbor Networks, Inc. in the USA and other countries. All other trademarks are the property of their respective owners.