Speedera Networks Cash Flow Positive, Doubles Revenue in Fiscal 2003.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 22, 2003

Fastest Growing Company in the Content Delivery Network Industry

Continues to Thrive as Signs of Economic Recovery Grow

Speedera Networks, the emerging leader in global content delivery services, today announced that it was cash flow positive for the fourth quarter of the fiscal year ended June 30, 2003. The company also doubled revenues for the full fiscal year. The company ended the year with strong momentum as sales in June alone rose 12% over the previous month. Speedera laid claim to increased market share as it notched its twelfth quarter in a row of sequential revenue growth since the launch of the company in 2000.

Speedera, with more than 200 customers, inked deals with a record number of new customers during the fiscal year, with organizations such as American Eagle Outfitters, NASA, Fox Broadcasting, Sony Music Entertainment, the National Hockey League, AtomShockwave, and many other well-known media and entertainment companies, Internet retailers, online marketers, high technology firms, and Federal Government agencies. A large number of new customers were previously customers of rival service provider, Akamai Technologies (Nasdaq:AKAM). Customers cited Speedera's stellar customer service, greater flexibility, superior patented technology, and lower total cost of service as reasons why they selected Speedera.

"We are debt-free, our revenue is growing, our market share continues to expand, and we're profitable. This is an astounding accomplishment under any circumstances, but particularly in the current economic environment," said Ajit Gupta, president and CEO of Speedera Networks. "While our shareholders and employees are elated with our results, I think the more important point is that our customers are extremely satisfied with the quality, manageability, price/performance, and service level of Speedera's offering. That's why we are profitable and why we will be here for the long haul to service their growing Web infrastructure needs."

Citing the early signs of renewed tech spending, Gupta said the quality of customers moving to Speedera for its outsourced services is proof that the market is healthy and growing. Moreover, he attributes rising demand for CDN services to more companies opening the spigot for tech spending, so long as it helps reduce their Web infrastructure and operating costs. One of the clearest signs of this growth, according to Gupta, is that Speedera's network traffic more than tripled during fiscal 2003.

"We foresee continued growth in the industry, particularly with the expansion of service offerings well beyond traditional CDN services, which used to consist of delivering cached graphical objects on Web pages. The CDN industry now includes a plethora of new and enhanced services, such as security, site monitoring, Web analytics, testing tools, and extensions of edge processing," said Gupta. "With rising market share and expanding market opportunities from new services, we look forward to an even better fiscal year ahead in 2004."

Speedera Rides Tide of Success as the Emerging Market Leader

During fiscal 2003, Speedera managed to do what most technology companies failed to do -- consistently grow its revenue and move quickly towards profitability. Speedera intensified efforts to meet growing customer demand by adding new features and functions to its SpeedSuite family of services. The company continued to cement its technology prowess throughout the year and was granted its second patent in November of 2002, which covers a service-based system for traffic management and content distribution over a worldwide network of computers.

In May, the company launched SpeedEye Access Manager, a new role-based security solution that provides Web site administrators with enhanced security capabilities for managing Speedera's services through its SpeedEye management portal. The new service is already being used by organizations with complex site administration needs, such as Intuit, Rediff, and Kino Digital, as well as resellers and aggregators who must manage multiple customers.

In June, Speedera also introduced a new policy-based management service enabling companies to place the hottest, most popular content on servers closer to users so that they can optimize their use of both centralized and edge storage, thus slashing operations costs while improving delivery quality, availability and performance.

Speedera also leveraged relationships during the year with such key channel partners as AboveNet (OTC:MFNXQ.PK) and Internap(R) Network Services Corporation (Nasdaq:INAP). Internap, the leading provider of performance-based routing services over the Internet, is now selling and marketing Speedera's Content Delivery Network (CDN) services across all markets in the United States. The two companies have already closed more than 25 customer deals through this relationship.

Fiscal 2003 At-A-Glance

           Key Customer Win Announcements: KQED, Satyam (Sify),
           Microsoft.
 FQ1 2003  Partnerships: Announces streaming media support for
           Microsoft Windows Media 9 Series platform.
           Financial News: Speedera FIRST pure play CDN to reach
           operating profitability.
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           Key Customer Win Announcements: American Eagle, Mind &
           Media / US National Guard, Hoover's, Handspring, Network
           Associates.
           Partnerships: TrueSpectra provides core technology for
 FQ2 2003  Speedera to offer unique Dynamic Imaging web service.
           Awards: Forbes 'Best of the Web' recognition.
           Financial News: Secures $6.5M in funding, eliminates
           all debt.
           Technology: Wins 2nd patent on core technology.
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           Key Customer Win Announcements: Fox Broadcasting (American
           Idol), Upromise, FDfn.
           Partnerships: Internap channel partnership results in
 FQ3 2003  flurry of new joint customers.
           Financial News: Company celebrates achieving operating
           profitability in Q1 - all employees are sent on a
           Hawaiian vacation as a reward for meeting this goal.
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           Key Customer Win Announcements: NASA, NHL, Times of India,
           Bluefly.com, AtomShockwave.
           Financial News: Company becomes cash flow positive;
           records twelfth consecutive quarter of revenue growth;
           doubles revenue for the full year.
           Technology: Introduced SpeedEye Access Manager, a new
 FQ4 2003  role-based security solution that provides Web site
           super-administrators with enhanced security capabilities
           for managing Speedera's services through the SpeedEye
           management portal. Speedera also introduced a new
           policy-based edge management service enabling companies
           to optimize the use of centralized and edge storage and
           bandwidth for best performance and availability at lowest
           total cost.
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Speedera Networks is financially backed by Banc of America Securities, a unit of Bank of America Corp. (NYSE:BAC), Balanced Growth Fund, Continuum Group, Deutsche Bank AG, Hewlett-Packard (NYSE:HWP), Industry Ventures, Oracle Corp. (Nasdaq:ORCL), Palo Alto Investors, and Trinity Ventures.

About Speedera Networks

Speedera Networks, Inc. is the emerging leader in content delivery services. The company provides global, on-demand services that cost-effectively solve the performance, scalability, availability and security problems of delivering web sites. Speedera's edge delivery network is deployed in the Americas, Europe and the Asia-Pacific region, with connectivity to over 1000 carrier networks. Speedera SpeedSuite services include a comprehensive set of next generation streaming, content delivery, failover, global load balancing, security and management services, all based on a common global traffic management infrastructure and patented technology. Customers include leading organizations such as American Eagle Outfitters, DoubleClick, Fox Broadcasting, Macromedia, Microsoft, NASA, Network Associates, Sony Music Entertainment, Univision. The company's investors include Banc of America Securities LLC, Continuum Group Ltd, Deutsche Bank AG, Hewlett-Packard Company, Oracle Corp., Industry Ventures and Trinity Ventures, among others. Speedera Networks is located at 4800 Great America Parkway, Santa Clara, CA, USA 95054-1227. For more information about Speedera, please call [phone], visit http://www.speedera.com or email [e-mail].