Packeteer 7.1 Delivers New Adaptive Response Security Capabilities; New Software Release Provides Automated Tools to Maintain Application Availability During Network Attacks.

CUPERTINO, Calif. -- Packeteer(R), Inc. (Nasdaq:PKTR), the pioneer and global leader in WAN Application Traffic Management, today announced the availability of Packeteer 7.1. The new software release is designed to keep enterprise networks running even under the most debilitating attacks by proactively identifying -- and correcting -- wide area network (WAN) performance issues caused by denial of service (DoS) attacks, spoofing hosts, infected machines, and other malicious traffic.

According to the 2004 CSI/FBI Computer Crime and Security Report, DoS attacks and malicious traffic caused by viruses and worms continues to cause serious issues on enterprise networks, and has outpaced the former top cost, the theft of proprietary data. The report estimates losses from DoS and virus attacks are more than 50% of the direct losses of security breaches overall. The new capabilities in 7.1 combat these threats by enabling enterprise users to more effectively monitor and control the increasing amount of malicious traffic on their WANs, resulting in reduced IT administration time and cost, and ensuring WAN and application resources maintain their desired performance levels.

"As applications and data resources of increasing value are made available through the network, the importance of providing effective asset protection increases, and the ability to do that with traditional network perimeter schemes decreases," said Peter Christy, principal of Internet Research Group. "Having industry-leading awareness of application flows on the network gives Packeteer a strong and differentiated capability. Building on that base capability, the adaptive response capabilities offered with Packeteer enable enterprises to greatly increase their network visibility and automate many of the crucial security functions that have brought so many networks to their knees."

The new capabilities build on Adaptive Response, introduced by Packeteer in November, which enables Packeteer appliances to automatically adapt to rapid changes in network and application conditions. Packeteer has added:

--New agents to automatically detect spoofing hosts, Syn attacks, and virus infected hosts. Adaptive response can be configured to automatically quarantine these hosts.

--New workflows for easily finding hosts with most connections, and most failed connections, which may signify an issue.

--Intelligent dropping of malicious traffic during traffic floods caused by denial of service attacks and large numbers of infected hosts, allowing the entire network to remain healthy.

"The cost of security breaches and downtime can be staggering," said David Puglia, vice president of marketing at Packeteer. "To mitigate losses, enterprises need to be able to address issues in real-time to ensure attacks or other malicious traffic are dealt with quickly and effectively. Packeteer 7.1 allows them to do this by enabling automated responses to changing WAN application traffic."

Packeteer 7.1 software will be available March 1, and is available at no charge to customers under current service contracts.

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.

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 5, 2004, and Packeteer's Form 10-Qs and other reports filed from time to time with the Securities and Exchange Commission.