SEATTLE -- F5 Networks, Inc. (NASDAQ:FFIV), the leading provider of Application Traffic Management products, today announced that it has signed a definitive agreement to acquire Swan Labs Corporation, a technology leader in the WAN (Wide Area Network) optimization and application acceleration market. The $43 million cash transaction for 100% of the equity of Swan Labs was signed on September 6, 2005 and, subject to customary closing conditions, including acceptance of employment with F5 Networks by certain employees of Swan Labs, is expected to close in the first quarter of F5 Networks' 2006 fiscal year. Swan Labs is recognized as a visionary in Gartner's latest Magic Quadrant for Web-Enabled Application Delivery, 2H04.

Swan Labs' WAN optimization and application acceleration technologies extend F5's market leading Application Traffic Management product portfolio. Upon integration, Swan Labs and F5 products together will provide a uniquely powerful enterprise-class solution that is expected to create the only integrated application delivery network to ensure superior performance, security, and availability for all applications -- across the WAN and within the LAN.

"The opportunity to acquire such powerful solutions that nicely round out F5's optimization portfolio was extremely attractive," said John McAdam, President and CEO of F5 Networks. "The acquisition will accelerate the execution of our strategy to deliver application acceleration and WAN optimization for all applications and users. A distinct competitive advantage for us is F5's advanced Traffic Management Operating System that creates a shared application and network services framework that will enable Swan Labs' solution to integrate well into F5's architecture. No other vendor in the market has this powerful capability."

Upon completion of this acquisition, F5 not only will have access to superior branch office-based and application-specific optimizations through Swan Labs' WANJet solution, but will also gain access to very advanced web application optimization technology in Swan Labs' WebAccelerator solution. When combined, Swan Labs' and F5's solutions will offer an integrated framework that extends application and network security, acceleration and availability to remote, branch, public and private users -- regardless of where they are coming from.

F5 Networks Inc.

Swan Labs Corp.