Juniper to Buy Peribit, Redline

SUNNYVALE, Calif. -- Juniper Networks, Inc. (Nasdaq:JNPR) today announced it has signed definitive agreements to acquire Peribit Networks, Inc., a leader in Wide Area Network (WAN) optimization technology, and Redline Networks, Inc., a pioneer in the development of Application Front End (AFE) technology. The Peribit Networks acquisition is valued at approximately $337 million in cash, stock and assumed stock options. The Redline Networks acquisition is valued at approximately $132 million in cash and assumed stock options.

These acquisitions further Juniper Networks' strategy to secure and assure the delivery and performance of applications over an IP network through best-in-class traffic processing. WAN optimization and Application Front End technologies are key elements in addressing the performance and security issues associated with an increasingly distributed and mobile enterprise. As applications become networked across distances, the ability for users to access them with security and assurance is compromised. WAN optimization technology enables distributed enterprises to deliver LAN-quality application performance over the WAN. Application Front Ends maximize the performance, flexibility and scalability of web-enabled enterprise data centers and sites. By combining these technologies with its best-in-class IP infrastructure and security solutions, Juniper Networks delivers a powerful and unique solution to address these issues head on. In doing so it has defined a new category - Application Assurance.

"Juniper Networks is capitalizing on its leadership position to redefine the networking market," commented Scott Kriens, chairman and CEO, Juniper Networks. "The addition of application acceleration technologies to Juniper Networks' best-in-class routing and security solutions is a natural extension of our traffic processing strategy. We are raising the bar on what users can and should expect from the network."

According to Gartner, Inc., "Business demand for application-acceleration solutions increased dramatically during the past two years. While a number of stand-alone market segments were developed to solve specific application performance issues, we are seeing a rapid consolidation of the market into a more comprehensive application-acceleration market in which multifunction platforms are the norm."*

Founded in early 2000, Peribit Networks develops WAN optimization appliances. Peribit Networks' platforms and software provide customers with increased WAN capacity, faster application performance, prioritized application delivery and systemwide visibility of network and application performance. Peribit Networks' solutions enable applications to run dramatically better over the WAN and their products have been installed in over 900 enterprise customers worldwide.

Also founded in early 2000, Redline Networks designs network solutions that maximize the performance, flexibility and scalability of web-enabled enterprise data centers and public web sites. The company's family of Application Front Ends, deployed within the boundaries of corporate data centers, enables users to control and customize any web-based environment while reducing infrastructure cost and complexity. Redline Networks has over 350 enterprise customers.

The Peribit Networks acquisition is expected to close in the third quarter of 2005 and is subject to certain customary closing conditions, including Hart Scott Rodino (HSR) approval. The Redline Networks acquisition is expected to close in the second quarter of 2005 and is subject to certain customary closing conditions.

The combined revenue for both Peribit Networks and Redline Networks was approximately $40M in 2004. The combined impact of Peribit Networks and Redline Networks, as well as Kagoor Networks, which is expected to close shortly, will be 1 to 2 cents dilutive to earnings per share in the second half of 2005 and accretive to earnings per share in 2006.

Juniper Networks Inc.

Peribit Networks Inc.

Redline Networks Inc.