Packeteer Introduces New Branch Office PacketShaper(R) 1400 WAN Optimization Systems; Best-in-Class Appliances Deliver Breakthrough Price/Performance and Scalability to Address Branch Office Sprawl.

CUPERTINO, Calif. -- Packeteer(R) (NASDAQ:PKTR), the global leader in WAN Application Optimization, today announced the introduction of two new entry-level PacketShaper(R) models that establish an aggressive price/performance benchmark specifically designed for branch office and network edge deployments. The PacketShaper 1400 models meet the WAN application optimization needs of distributed branch office enterprises by combining a high capacity appliance with built-in scalability that fits a branch office budget and resources. The new models offer customers the flexibility of a software key upgrade path to enable traffic shaping, application acceleration and compression options to deliver configurable WAN optimization solutions that protect existing network infrastructure investments.

"What Packeteer has done with the introduction of the PacketShaper 1400 product line is set a new price/performance threshold for the industry," said Peter Sevcik, president of NetForecast in Charlottesville, VA. "The new low water mark for office access bandwidth is now at least 2 Mbps. Competing branch office solutions can be up to three times more costly and not match the full range of functionality offered by Packeteer. The 1400 permits leveraging the new low cost bandwidth alternatives available on the marketplace. This demonstrates Packeteer's ability to deliver a consolidated WAN optimization solution for every location, even the cost-sensitive, small branch environment."

The new PacketShaper 1400 Lite and 1400 models are Packeteer's second generation of branch office appliances and succeed the current PacketShaper 1200 and 1550 systems. Positioned for small branch locations such as retail environments that typically run fewer business critical applications, the 1400 Lite can handle up to 64 application classes while tracking network and server delay and other application response time metrics. Positioned for larger branches such as banks or remote offices, the PacketShaper 1400 features onboard reporting and enables customers to identify, report and measure the performance characteristics of up to 256 application classes. Each model has expanded processing and memory capacity for future features and the 1400 Lite can be easily upgraded to the 1400 via a software key. The new PacketShaper 1400 models will be carried through Packeteer's distribution and reseller channels worldwide.

"These new models will help customers provision great application performance at every branch location," said David Puglia, vice president of marketing for Packeteer. "We know that IT organizations have differing budgets and unique needs which is why we are committed to delivering the right solution at the right price point to fit the need of any enterprise."

"The new PacketShaper 1400 models make it very easy to match customer requirements with the right system," said Don Swanson, president of dcVast (www.dcvast.com), a Packeteer channel partner and leading building of IT infrastructure. "In addition, the combination of low cost and scalability coupled with the ability to easily add new functionality with the simplicity of a software key upgrade makes this a very attractive channel solution that we expect will trigger significant demand."

PacketShaper 1400 Series Details

The PacketShaper 1400 Lite and 1400 systems are 1U rack-mountable appliances. The 1400 Lite appliance supports up to 64 application classes and the 1400 supports up to 256 classes. Each of the new 1400 models feature two pairs of interfaces to accommodate the growing number of branch offices with dual links. The PacketShaper 1400 Lite leverages Packeteer's ReportCenter or third-party reporting applications to track utilization, performance and application SLAs. The 1400 has the ability to query and build reports via the appliance or through ReportCenter and third party reporting applications.

Each system can support link speeds up to 2 Mbps with full compression. Each of the PacketShaper 1400 series appliances use the same software and firmware functionality as existing PacketShapers and ship with release 7.4 of the PacketWise operating software.

The PacketShaper 1400 models comply with the European Union (EU) Restriction of Hazardous Substances (RoHS) directive that is a requirement for all companies selling products within or into the EU. The RoHS directive, designed to provide environmental safeguards eliminating the use of toxic materials, applies to electrical and electronic products and their component parts offered for sale in the EU after July 1, 2006.

Pricing and Availability

The new PacketShaper 1400 models are available immediately and pricing starts at $1,500 US MSLP.

About Packeteer

Packeteer, Inc. (NASDAQ:PKTR), is the global market leader in WAN Optimization and 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 website 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, but are not limited to, express or implied statements regarding future revenues, revenue growth and profitability, spending levels by existing and prospective customers, the markets for our products, 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, 2006, and Packeteer's Form 10-Qs and other reports filed from time to time with the Securities and Exchange Commission.

Packeteer, PacketShaper, PacketShaper Express are trademarks or registered trademarks of Packeteer, Inc. All other products and services are the trademarks of their respective owners.