SUNNYVALE, Calif. -- Juniper Networks, Inc. (Nasdaq:JNPR - News) has signed an agreement to acquire NetScreen Technologies, Inc. (Nasdaq:NSCN - News), in a stock for stock merger transaction. Based upon Juniper Networks closing stock price of $29.47 on February 6, 2004, the deal has an approximate value of $4 billion. Juniper Networks stock will be exchanged for NetScreen Technologies stock at a fixed exchange ratio of 1.404 shares of Juniper Networks common stock for each outstanding share of NetScreen Technologies common stock. The combined company will provide customers with mission critical networking requirements, including security, reliability and performance, each simultaneously without compromise.

The acquisition is expected to close in the second quarter of calendar year 2004 and is subject to customary closing conditions, including approval by the stockholders of both companies and regulatory approvals. Upon closing, the transaction would be accretive to Juniper Networks on a non-GAAP basis, excluding purchase accounting adjustments.

"This is a combination of two strong companies. Both Juniper and NetScreen have proven their ability to execute separately, and together we will accelerate our ability to serve an expanded market with complementary best in class solutions," said Scott Kriens, chairman and CEO of Juniper Networks. "Our collective customers have told us security, reliability and performance are mission critical to their network users, and together we will deliver a compelling response to their needs."

"The NetScreen Technologies team is excited to be a part of the Juniper Networks franchise," said Robert Thomas, president and CEO, NetScreen Technologies. "Our delivery of purpose built security solutions complements Juniper Networks IP networking market leadership."

Juniper Networks Inc.

NetScreen Technologies Inc.