Barracuda Networks Announces Investment from Sequoia Capital and Francisco Partners.

MOUNTAIN VIEW, Calif. -- Barracuda Networks, Inc., the leading provider of enterprise-class spam firewall solutions, today announced that after shipping product for two years it has closed its first outside investment of $40 million from Sequoia Capital and Francisco Partners. Sequoia Capital, which has provided financing to Cisco Systems, Google, Netscreen, and Yahoo!, is widely viewed as the world's preeminent venture capital firm. Francisco Partners, whose founders include technology investment banking pioneer Sandy Robertson, is a leading private equity firm with tremendous experience in financial and deal structuring.

"Sequoia Capital and Francisco Partners have a wealth of experience from their hundreds of successful companies that will be valuable as we take Barracuda Networks to the next level," said Dean Drako, president and CEO of Barracuda Networks. "We look forward to working together as we continue to grow Barracuda Networks by providing the best security products to protect our customers from spam, viruses, spyware and other threats."

"Barracuda Networks' delivery of powerful and easy to use security solutions to over 30,000 customers, while maintaining profitability, made partnering an easy decision for us," said Sameer Gandhi of Sequoia Capital. "We look forward to the many successes that are sure to come as Barracuda Networks continues to provide comprehensive security solutions."

"Barracuda Networks has quickly emerged to a market leading position in the rapidly growing security appliance market," said David Golob of Francisco Partners. "We are delighted to be partnering with the company as it continues to expand into adjacent markets."

Barracuda Networks flagship product, the Barracuda Spam Firewall leverages a powerful combination of open source spam and virus solutions in conjunction with ten defense layers to provide complete email protection. Prior to the Barracuda Spam Firewall launch in 2003, businesses seeking spam protection were reliant upon complex software or third party filtering services that were expensive and often challenging to manage across the network. The Barracuda Spam Firewall revolutionized the market by providing an affordable appliance-based solution that reduced the load placed on the email server by off-loading both spam and virus filtering.

Barracuda Networks also provides the Barracuda Spyware Firewall, the first true comprehensive anti-spyware and Web filtering gateway appliance, and the Barracuda IM Firewall, the only all-in-one instant messaging appliance. Both product lines illustrate Barracuda Networks' unwavering commitment to providing its customers with effective solutions for the growing number of security threats.

About Barracuda Networks, Inc.

Barracuda Networks is the leading provider of enterprise-class spam firewall solutions for comprehensive email protection. Its flagship products, the Barracuda Spam Firewall and Barracuda Spam Firewall-Outbound, provide spam and virus protection for over 30,000 customers around the world, including Adaptec, Barnes & Noble, Caltrans, CBS, Georgia Institute of Technology, IBM, NASA, Pizza Hut, Union Pacific Railroad Company, and the U.S. Treasury Department. Barracuda Networks is a privately held company with headquarters in Mountain View, California. Barracuda Networks has offices and distributors in over 43 countries. More information is available at www.barracudanetworks.com.

About Sequoia Capital

Since 1972, Sequoia Capital has provided startup venture capital for very smart people who want to turn ideas into companies. As the "Entrepreneurs Behind the Entrepreneurs," Sequoia Capital's Partners have worked with innovators such as Sandy Lerner and Len Bozack of Cisco Systems, Jerry Yang and David Filo of Yahoo!, Gaurav Garg of Redback Networks, Larry Page and Sergey Brin of Google, Dan Warmenhoven of Network Appliance, Max Levchin and Peter Thiel of PayPal (eBay), T.J. Rodgers of Cypress Semiconductor, Lou Tomasetta of Vitesse Semiconductor, Steve Jobs of Apple Computer and Larry Ellison of Oracle. To learn more about Sequoia Capital visit www.sequoiacap.com.

About Francisco Partners

With $2.5 billion of committed capital, Francisco Partners is one of the world's largest technology-focused private equity funds. The firm was founded to pursue structured investments in technology companies undergoing strategic, technological, and operational inflection points. Francisco Partners targets majority and minority investments in private companies, public companies, and divisions of public companies, with transaction values ranging from $30 million to $2.0 billion. The principals of Francisco Partners have a proven track record, having invested in excess of $3.0 billion of equity capital in over 50 technology companies. For additional information, visit www.franciscopartners.com.