New Dynamic Data Compression Software from Packeteer Raises the Bar for WAN Optimization.

LAS VEGAS -- ICNA Algorithm Plug-in Improves Data Compression of E-Mail Traffic in the Enterprise Offering Users the Ability to Achieve Compression Performance Gains of up to 80%

Packeteer(R), Inc. (Nasdaq:PKTR), the pioneer and global leader in WAN Application Traffic Management, today announced the availability of a new compression algorithm plug-in dubbed ICNA. The new ICNA algorithm builds upon the significant improvements of the CNA algorithm introduced by Packeteer last May. The CNA and ICNA algorithms are part of Packeteer's dynamic compression architecture that includes over six different application specific compression methods for WAN application acceleration.

The performance improvements possible from ICNA compression target some of the most used applications in the enterprise. Offering industry-leading compression results, ICNA improves e-mail traffic in typical enterprise environments by enabling up to 80% compression gains. ICNA builds on CNA by adding extra capabilities that allow for better gains due to variable match lengths. The most common lengths of matches are represented in fewer bits, resulting in better gains on highly textual data types, particularly e-mail, including SMTP, POP3, and Notes.

"Application-level compression is critical to the enterprise, and an important element to WAN Application Traffic Management," said David Puglia, vice president of marketing for Packeteer. "Applications are different and need to be treated differently. Our solutions dynamically adapt to each application to ensure the enterprise can optimize their bandwidth to receive the maximum benefit from their WAN."

Packeteer provides deep visibility into traffic running on the network, industry leading bandwidth management capabilities, and advanced compression in a single integrated platform. Advanced compression capabilities ensure that Packeteer's solution applies algorithms selectively to certain traffic types, pulling from an extensive library into which users can install algorithms as "plug-ins" as they are developed and released.

The new software is available immediately to Packeteer customers with existing service contracts, and available for download at: http://www.packeteer.com/support/.

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 408-873-4400 or visit the company's web site at www.packeteer.com.

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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.

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