Packeteer Launches Highly Anticipated Operating Software Release Supporting Acceleration and Convergence; Release 8.0 Integrates New Application Acceleration Architecture; Adds Voice/Video Monitoring and Compression to Optimize Converged Networks.

CUPERTINO, Calif. -- Packeteer(R) (NASDAQ:PKTR), the global leader in WAN Application Optimization, today announced the next-generation operating software for its PacketShaper(R) appliances that now integrate application acceleration, visibility, control and compression in a single system. In addition, the new release 8.0 features strategic voice and video quality monitoring and real-time compression technologies that will enable customers with converged networks to handle increasing volumes of voice and video traffic between sites without the need to add costly bandwidth.

"As a distributed organization running so many customer-critical applications, we've encountered some significant performance slowdowns, especially with large file transfer and server backups," said Dr. Arun DeSouza, chief information security officer with Inergy Automotive Systems. "In addition, we've been deploying more web-based applications that also suffer from performance lags, especially those distributed across long distances. Consequently, Packeteer's acceleration technologies for TCP and HTTP/XML will play a vital role in optimizing the performance of our most strategic applications that will be felt on the bottom-line due to improved productivity gains and higher transaction volumes."

Release 8.0 seamlessly integrates a new acceleration architecture that operates in concert with Packeteer's market-leading classification and visibility, quality-of-service and compression technologies. This architecture includes a new capability called Xpress TCP acceleration that significantly improves the performance of business critical applications including large file transfers, database synchronizations, data center mirroring and distributed storage backups. The new acceleration module provides a high performance, transparent application gateway that allows PacketShapers to move client server responses to the local network, removing the impact that latency has on chatty protocols and opens up connection speeds to accelerate traffic.

The new application acceleration architecture also features Xpress HTTP and XML that greatly improves the performance of customer-critical enterprise applications such as SAP, PeopleSoft Enterprise, Oracle and intranet applications that utilize HTTP and XML to connect geographically dispersed employees worldwide. Xpress HTTP speeds Web and XML applications with fast connection setup, intelligent parsing, fetching and pre-caching of objects and content.

"By integrating advanced acceleration technologies as a module within Release 8.0, we're delivering a breakthrough platform that consolidates monitoring, shaping, compression and acceleration in a single system," said David Puglia, Packeteer's vice president of marketing. "The inter-relationship of these technologies will produce an additive effect in improving the quality of end-to-end application delivery. And this is significant, especially for large enterprises whose operational efficiency and productivity depends on the hundreds of business critical applications running over their networks."

Managing Migration to Converged Voice/Video/Data Networks

As enterprises continue to roll out data, voice and video networks handling increasing volumes of multimedia traffic, there is a growing need for quality-monitoring and bandwidth management to handle this network convergence. Release 8.0 features new voice and video quality-monitoring functions that examine Real Time Protocol (RTP) traffic for jitter, delay and packet loss. As a result, Packeteer is extending its suite of application service level agreement statistics to include IP telephony and IP video-conferencing applications.

In addition, release 8.0 features new real-time traffic compression to expand bandwidth capacity for increasing voice and video traffic loads. The new compression technique intelligently groups voice and video data packets into "superpackets" that allows the network to accommodate more calls or video sessions without the need to increase bandwidth. To free up additional bandwidth, customers can selectively employ PacketShaper compression on or restrict recreational applications to a smaller portion of the link.

Pricing and Availability

The Acceleration Module with Xpress TCP and Xpress HTTP/XML is available for PacketShapers on release 8.0 and starts at $250 US MSLP. Other release 8.0 features are available as free upgrades to customers with a PacketCare support contract. Packeteer's release 8.0 software will be generally available starting in May 2006.

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 408-873-4400 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 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, 2006, and Packeteer's Form 10-Qs and other reports filed from time to time with the Securities and Exchange Commission.