Leading Global Analyst Firm Names Packeteer Market Leader in WAN Optimization for Second Year in a Row; IDC Report Shows Packeteer to Command Largest Market Share, Surpassing that of Next Four Competitors Combined.

CUPERTINO, Calif. -- Packeteer(R), Inc. (Nasdaq:PKTR), the pioneer and global leader in WAN Application Traffic Management, today announced that a May 2005 report from IDC titled "Worldwide WAN Optimization 

Management 2005-2009 Forecast and Analysis" showed Packeteer to have more than three times the market share of the nearest competitor and 2004 revenue and total market share that surpasses that of the four closest competitors combined. The report includes revenues and market share for 25 vendors.

IDC defines the WAN optimization market as hardware or software products that compress datastreams, monitor traffic flows, prioritize traffic via QoS policies, and/or manage applications from a protocol perspective. These tools analyze application traffic from an external WAN perspective that is generally delineated from the edge router out across the WAN to the user.

"The WAN optimization market continues to pick up momentum throughout enterprise IT organizations worldwide as everyone from CIOs to IT and network managers have begun to realize the needs, the viability, and the significant ROI value of network optimization solutions," said Vincent Lui, senior research analyst at IDC. "The intelligence and reporting that these products bring to the network makes the traditional approach of adding additional bandwidth to combat application performance issues a thing of the past. As the first vendor to offer products in this space, Packeteer offers mature, proven solutions and continues to dominate the market."

Packeteer delivers WAN Application Traffic Management via intelligent appliances at the LAN/WAN interface. This helps enterprises maximize IT investments by aligning network applications and resources with business needs, providing significant cost savings in the process. The Packeteer system protects and accelerates key business applications and controls malicious, recreational and other non-business traffic.

"We've continued to experience increased revenues and see significant opportunities for market growth as organizations standardize on our products throughout their networks," said David Puglia, vice president of marketing for Packeteer. "IDC's research findings validate our continued leadership and substantiate what we've been seeing for some time -- enterprise users are becoming more savvy and aware of their WAN optimization needs and of the available solutions."

Packeteer's Application Traffic Management solutions automatically detect more than 450 applications running on an enterprise WAN and allow users to set policies and partitions to ensure that critical applications get the network resources they need to perform optimally. With its multi-algorithm compression, Packeteer also ensures that each traffic type is compressed by the algorithm that enhances its performance most, with users seeing up to 10X compression on some traffic types. In addition, Packeteer SkyX products allow TCP and HTTP acceleration for better application response times in Web, data backup and recovery, engineering, oil and gas, and architectural applications, in all satellite and high latency WAN environments.

Copies of the report may be purchased from IDC at www.idc.com.

About Packeteer, Inc.

Packeteer, Inc., (Nasdaq:PKTR) is the global market leader in Application Traffic Management for wide area networks. Deployed at more than 7,000 companies in 50 countries, Packeteer solutions empower IT organizations with patented network visibility, control, and acceleration capabilities delivered through a family of intelligent, scalable appliances. For more information, contact Packeteer at [phone] or visit the company's web site at www.packeteer.com.

Safe Harbor Clause

The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, including statements regarding Packeteer's expectations, beliefs, intentions or strategies regarding the future. Forward-looking statements include express or implied statements regarding future revenues and profitability, spending levels by existing and prospective customers, new product development, liquidity and macro economic conditions. All forward-looking statements included in this press release are based upon information available to Packeteer as of the date hereof. Packeteer assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. Actual results may differ materially due to a number of factors including the perceived need for our products, our ability to convince potential customers of our value proposition, the costs of competitive solutions, continued capital spending by prospective customers and macro economic conditions. These and other risks relating to Packeteer's business are set forth in Packeteer's Form 10-K filed with the Securities and Exchange Commission on March 16, 2005, and Packeteer's Form 10-Qs and other reports filed from time to time with the Securities and Exchange Commission.