Blue Coat Completes Acquisition of NetCache Assets from Network Appliance

Blue Coat Press Release

Monday, September 11, 2006
Blue Coat Newsroom

Blue Coat Completes Acquisition of NetCache Assets from Network Appliance

SUNNYVALE, Calif., September 11, 2006 -- Blue Coat® Systems, Inc. (Nasdaq: BCSI), a leader in secure content and application delivery, today announced that it has completed the acquisition of assets of NetCache™ business from Network Appliance (NASDAQ: NTAP). On June 23, 2006, Blue Coat announced the execution of an asset purchase agreement to acquire the assets of the NetCache business. The final consideration for the transaction included approximately $23.9 million in cash and 360,000 shares of Blue Coat common stock. The cash proceeds were funded with a portion of the proceeds from the investment by Francisco Partners and Sequoia Capital in June 2006.

Blue Coat and Network Appliance have also entered into transition services agreements to continue product availability and support for NetCache customers, including continuing manufacturing services as well as sales, service and support. In connection with the close, Blue Coat received information that will enable the Company to provide updated revenue guidance in early October 2006, including the impact of the NetCache acquisition.

“Blue Coat, along with Network Appliance, is committed to continuing to serve NetCache customers, while providing a seamless transition to the Blue Coat platform,” said Brian NeSmith, president and chief executive officer of Blue Coat Systems. “The addition of the NetCache customers further strengthens our ability to be successful in the emerging application delivery infrastructure industry.”

Conference Call & Webcast
The Company will host a conference call on October 2, 2006 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to provide updated revenue guidance. Participants should call (612) 332-0820 with the passcode: 841803. A replay of the call will be available starting Monday, October 2, 2006 at 5:30 p.m. Pacific Time (8:30 p.m. Eastern Time), and can be accessed by calling (320) 365-3844 with the passcode: 841803. An audio Webcast of the call will also be available at http://www.bluecoat.com/aboutus/investor_relations.

About Blue Coat Systems

Blue Coat Systems is a leading provider of Web security and WAN optimization solutions. Blue Coat offers solutions that provide the visibility, acceleration and security required to optimize and secure the flow of information to any user, on any network, anywhere. This application intelligence enables enterprises to tightly align network investments with business requirements, speed decision making and secure business applications for long-term competitive advantage. Blue Coat also offers service provider solutions for managed security and WAN optimization, as well as carrier-grade caching solutions to save on bandwidth and enhance the end-user Web experience. For additional information, please visit bluecoat.com.

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