CacheFlow Fortifies Pacific Rim with Sumisho Electronics and Lidcam Technology; Reseller Giants Sign Distribution Agreements with Caching Leader.

PALO ALTO, Calif.--(BUSINESS WIRE)--June 24, 1998--CacheFlow Inc, the leader in high performance network caching, today announced increased international channel distribution with the addition of Australia's Lidcam Technology Pty. Ltd. and Japan's Sumisho Electronics, a division of Sumitronics Co., Ltd., a group company of Sumitomo Corporation. The partnerships further strengthen CacheFlow's ability to meet growing demand from international markets requiring caching appliances that deliver fast end user response times while leveraging bandwidth gains.

"CacheFlow's Active Caching architecture is the superior choice for the Australian networking market." said Scott Lidgett, managing director of Lidcam Technology. "The combination of leveraged bandwidth gains and fast end user response time mirrors Lidcam's focus of providing Internet Service Providers and Enterprises with best of breed networking products."

"Our partnership with CacheFlow allows us to deliver a caching solution uniquely suited to the needs of the Japanese market." said Mr. Ken Fuji, General Manager, Business Solution No. 2 Division of Sumisho Electronics. "CacheFlow delivers much needed bandwidth gains and fast end user response times in an easy to administer appliance."

"Both Sumisho Electronics and Lidcam understand the complex needs of the networking markets they service, and both have long standing reputations of excellence with their respective customer bases," said Bill Warner, vice president of sales for CacheFlow. "We are excited to partner with such premium resellers."

The demand for network caching products has grown quickly over the past 12 months. According to a recent study by Collaborative Research, the market for caching products is exploding to a multi-billion dollar marketplace by 2002(1). The competitive Internet Service Provider market is swiftly adopting caching to improve their subscribers' Internet experience and reduce bandwidth consumption. In addition, a recent Forrester Report claims that by 1999 all Fortune 1000 companies will depend on network caches to keep their Intranets running smoothly(2).

Today's announcement of the Lidcam and Sumisho Electronic agreements follows other recent announcements of CacheFlow's world-class channel partnerships. They include Canada's Dynavar Networking, Inc; US-based Solunet, StarCom (a division of Arcom) and Source Technology; and Japan's Nissho Electronics.

CACHEOS(TM) -- THE HIGHEST HIT RATIO

Embedded within each CacheFlow product is CacheOS(TM), a patent-pending operating system designed specifically for network caching. The industry's first Active Caching technology, CacheOS serves as the foundation of the highest-performance network caching products in the world.

CacheOS improves user response time by achieving hit ratios of up to 75%, which means as few as 25% of user requests are delayed by round trips to distant servers. CacheOS also reduces unnecessary network traffic, providing bandwidth gains of 30-50%.

With CacheOS embedded in each CacheFlow appliance, there is no general -purpose operating system to administer. Adaptive algorithms within the CacheOS are self-tuning, minimizing administration requirements. The browser based administration console, native to CacheOS, is powerful and easy to use.

ABOUT LIDCAM TECHNOLOGY PTY. LTD.

Established in 1989 and privately held, Lidcam Technology Pty. Ltd. is a distributor of premium quality computer networking products and services for Local and Wide Area Networks. It distributes its products and services through a network of resellers, VARs and Systems Integrators throughout Australia. Lidcam Technology can be contacted at Level 5 499 St Kilda Road Melbourne VIC 3004 Australia. Telephone: [phone]. Fax: [phone]. www.lidcam.com.au. Email: [e-mail].

ABOUT SUMISHO ELECTRONICS

Sumisho Electronics, a division of Sumitronics Co. Ltd., a group company of Sumitomo Corporation is a Japanese distributor of Computers, Network, Application Software, Semiconductor Equipment, and CG/Image Processors. Since 1985, Sumitronics has served as a bridge for trade between the United States and Asia, specializing in the export and import of computer, communications and other high technology products. Sumisho Electronics can be contacted at Sumitronics, Inc. 2900 Patrick Henry Drive, Santa Clara, CA 95054 U.S.A. Telephone: [phone], or at www.sumitronics.com.

ABOUT CACHEFLOW INC.

CacheFlow Inc. is a privately held corporation focused exclusively on delivering the world's highest performance network caching appliances. Founded in March 1996 by Michael Malcolm, previous founder and CEO of Network Appliance, CacheFlow products contain the patent-pending CacheOS(TM) embedded software. Located in Palo Alto, California, CacheFlow can be contacted via telephone: [phone], fax: [phone], email: [e-mail] and the Internet: http://www.cacheflow.com.

(1) Collaborative Research,The 1998 Internet Caching Report, February

1998 (2) Forrester, Network Strategies, Analyzing the Impact of New

Networks on the Global 2000, October 1997

    CONTACT: CacheFlow Inc.
              Austin Edgington, 650/849-1917
              [e-mail]