Array Networks Secures $12.5 Million In Second Round of Venture Financing.

Business Editors

CAMPBELL, Calif.--(BUSINESS WIRE)--Oct. 23, 2002

US Venture Partners and H&Q Asia Pacific Lead Investment

to Propel Array Networks on Fast Track to Profitability

Array Networks, The Web Traffic Company(TM), announced today that it has received $12.5 million in its second round of institutional funding, bringing the company's total private equity investment to $43.6 million. US Venture Partners (USVP) and H&Q Asia Pacific participated in the funding. Both blue-chip investors participated in Array's previous round of venture financing. The company expects to achieve profitability in 2003 due to the continued strong sales of its Application Networking Architecture (ANA) product families.

The company will use this investment to expand worldwide sales and marketing and accelerate development of new Web optimization devices. Array Networks' products include the Array SP series of secure Web traffic management solutions, the Array TM series of multi-function Web traffic management platforms and the forthcoming Array SR Web traffic analyzer. Over 250 customers and partners, including Microsoft, Hitachi, NEC, Harris, nVidia, Texas Health Resources and ChinaCache have deployed Array products since its first customer ship in fall 2001.

With a 20+-year tenure as a visionary Silicon Valley executive, Donald J. Massaro, President and CEO of Array Networks, is known for his pioneering leadership at companies including Shugart Associates, Xerox Corporation, Metaphor Computer Systems, and Silicon Gaming. Lawrence Lu, Chief Technology Officer of Array Networks, founded Array in April 2000. Lu was responsible for building several engineering teams at Alteon Web Systems, where he dramatically improved the performance of the company's switches and developed advanced Layer 7 switching technology. Previously, Lu managed Cisco Systems' PIX firewall development team, the world's leading firewall product.

"Led by Don Massaro and Lawrence Lu, Array Networks is proving that a well-managed startup armed with next-generation technologies can successfully challenge networking giants such as Cisco Systems, Nortel Networks and F5 Networks," said David E. Liddle, Ph.D., General Partner of USVP and a member of Array Networks' Board of Directors. "Array customers and partners have embraced the company's breakthrough approach to reducing the cost of ownership and accelerating the return on investment associated with enterprise networking equipment."

"Particularly in today's environment, a significant component of our investment strategy involves funding established companies with the ability to leverage and target international opportunities. Array Networks, with its revolutionary Application Networking Architecture products, strong and continuous growth, and the proven leadership of its executive team, is well on its way to becoming a global market leader in next-generation, Web optimization infrastructure products," said Ta-lin Hsu, Chairman and founder of H&Q Asia Pacific and a member of Array Networks' Board of Directors. "We are excited to continue working closely with the Array team on strategic and operational fronts here in the U.S. and also helping Array to showcase their strong competitive advantages over other technology offerings through our extensive network in the Asia Pacific."

"This latest financing round from blue-chip investors validates the viability of our approach to delivering secure Web traffic management platforms that provide a compelling alternative to load balancers, caches, SSL accelerators, VPNs, and other standalone networking devices," said Donald J. Massaro, President and CEO of Array Networks. "This investment funds our plans to build our leadership in the growing market for Web optimization infrastructure, develop innovative new products and achieve profitability in 2003."

The Array Application Networking Architecture is a highly integrated, exceptionally scalable architecture for secure Web traffic management platforms that can direct, accelerate, secure and analyze all internal and external Web traffic. Array ANA platforms utilize Array's SpeedStack(TM) network processing technology to provide tightly coupled integration of IP services, Web security and network performance.

About Array Networks

Array Networks, the pioneer in directing, accelerating, securing and analyzing all internal and external Web traffic, develops the industry's first fully integrated Web traffic management and security platforms. Headquartered in Campbell, California with sales offices in the U.S., Europe, Asia Pacific and Latin America, Array Networks engineers and manufactures its products in the Silicon Valley and sells through direct and value-added channels. Array Networks has raised $43.6 million in venture funding from blue-chip investors U.S. Venture Partners and H&Q Asia Pacific. Comdisco Ventures and individual investors have also invested in the company. For more information, visit www.arraynetworks.net or call [phone].

About US Venture Partners

Since its inception in 1981, USVP has raised more than $2.5 billion in eight funds, including a $1 billion fund that closed in January 2001. To date, over $1.1 billion has been invested in more than 271 companies. Many of these companies where USVP was the "founding" lead investor, such as Sun Microsystems, New Focus, Check Point Software Technologies, Nuance Communications, Blue Martini Software, AMCC, MMC Networks, Centillium Communications and Stratacom/Cisco have become the leading companies in their respective fields.

About H&Q Asia Pacific

H&Q Asia Pacific, based in Palo Alto, Calif., is a premier private equity firm that invests in Asia and the United States. It was founded in 1985 by Ta-lin Hsu as a division of investment banking firm Hambrecht & Quist and is now an independent firm with assets of more than $1.8 billion in 17 funds. It invests in a variety of high-growth sectors, including technology, branded consumer products and financial services. The firm has a total of 10 offices in all principal Asian markets and in the Silicon Valley.

Array Networks is a registered trademark, and SpeedStack and the Web traffic company are trademarks of Array Networks.