Network Physics' Partner Program Grows 125 Percent in Two Months under Exclusive Channel Strategy; Record First Quarter for Application Performance Insight Leader.

MOUNTAIN VIEW, Calif. -- Network Physics, the leader in application performance insight, today announced that its Gold Partner reseller program has grown 125 percent since its commitment to an exclusive channel sales strategy, publicly announced on January 31, 2006. Fueled by this phenomenal growth, the company says it will continue to aggressively recruit and enable additional qualified reseller partners. Further, the privately held company attributed record-breaking first quarter sales (up 170 percent from Q1 '05) to its successful channel strategy.

The company has inked deals with reseller networking experts located around the world, including Acclaim Networks; Apsera Tech, Inc.; BostonNetSource; Comm Solutions Company; CORSTAR Communications; Data Access DataPatch, Inc.; Data Technology Systems; HarrisNaS; Intelligent Technology Systems, Inc.; Layer 3, Inc.; Management Communication Services, Inc.; NetStone Communications, Inc.; Nextgen Networks; P4 Performance Management; Rapid Access Communications Enterprises, Inc.; Scientific NetIP Communications, a division of Scientific Devices; Solution Canvas; Starnet Data Designs; Technology Deployment Research; and TGS-Telonic GmbH.

Voicing what appears to be a consensus among the partners, Starnet's President Steve Marks notes, "The NetSensory product line, with the NP-2000 Professional in particular, are a solution provider's dream come true. I can install the NP-2000 Professional in a customer's network in less than half a day and identify within hours the one or two areas where improvement is possible. This allows me to easily identify what solutions I can offer. What's more: within a week, I'll have a detailed overview of the network that would have taken me months to determine using any other product--and quite honestly, most of that time would have been spent installing and configuring the tool. The NetSensory appliance not only sells itself, it sells many other products and solutions that I can deliver, at the time of the initial engagement, and going forward after the sale."

Starnet's Marks cites an example of how using the Network Physics solution enabled him to offer the right solution to a customer. "One of my customers had a P.O. ready with another reseller for an expensive, probe-based solution. I brought in the NP-2000 NetSensory Professional and within one day, the customer decided it was a better fit: it showed him more information than the more expensive alternative. I've already identified a couple of other sales opportunities in his infrastructure based on what the NetSensory box has shown me--and he's got the money to spare for them because he saved so much going with Network Physics."

Marks also praises the Network Physics reseller program. "They understand that the best way to build a relationship with a reseller partner is to put yourself in his place, and deliver the goods: high margin, a strong value-add proposition, an opportunity to improve your positioning with your customer, and, most importantly, honesty and integrity. Network Physics' total commitment to a 100 percent channel sales model is apparent in the extensive support I'm getting from their sales team and the quality of the leads they're funneling to me."

When Network Physics announced its exclusive channel sales strategy that ran counter to the traditional direct sales strategy commonly deployed by network management tool vendors, it also introduced its NP-2000 NetSensory Professional with Insights. This application performance insight solution is priced at under $10,000, providing channel partners with network application solutions designed for the needs of both large enterprise users and medium-sized enterprise IT staffs.

According to AMI Partners, there are 100,000 medium-sized enterprises in the United States alone, and 500,000 worldwide. These companies--with revenue in the $100 million to $2 billion range--typically have smaller budgets and a smaller IT staff that must fulfill many roles; yet, they face the same types of application performance problems as their counterparts at much larger enterprises. As a result, they depend on their resellers for expertise to help solve their application performance problems.

President and CEO of Network Physics, Kenny Frerichs, sums up the large response the company has seen since its public commitment to sell exclusively through its channel partners. "We're pleased to welcome all of our new Gold Partner resellers. The ground-breaking services that they are building on top of the Network Physics technology are just the beginning of a major wave of revenue-generating, high-value service products that are in high demand, but low supply. We're excited to partner with these visionary resellers to broaden the reach of application performance insight around the world."

About Network Physics

Network Physics' NetSensory(TM) application performance insight appliances enable enterprise IT staff to defend the network against "the network is slow" complaints, and deliver the fastest time to value in the industry with the unique NetSensory Insights, which enable the company's rapidly-growing network of solution and channel partners to quickly adapt the user interface to customers' specific needs. The company's patented technology delivers over 60 real-time metrics in their business context, giving IT staff a unique "barometer" of application performance for early detection of problems and an understanding of their business impact. Although the easily-installed, non-intrusive NetSensory appliances require no agents, they can monitor end-to-end performance across the largest and most complex networks, allowing enterprises to audit, baseline, troubleshoot, secure, and optimize their application infrastructure to assure its integrity and security. Network Physics products are currently deployed at hundreds of mid-size and Global 2000 organizations, including world leaders in the financial, health care, manufacturing, media, and retail sectors. For more information, please visit the company's web site at www.networkphysics.com.