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Procera, Netintact Merge

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LOS GATOS, Calif. -- Procera(R) Networks, Inc. (OTCBB: PRNW), a pioneering developer of application-driven converged network platforms, announced the completion and signing of the definitive agreement for the company's merger with Netintact AB, a privately held developer of mission-critical network traffic and service management solutions with headquarters in Sweden.

Netintact's core product suite PacketLogic(TM) is a proven technology with a substantial reference base of more than 150 high-end customers worldwide. Netintact has sold and deployed PacketLogic primarily to large telcos and highly specialized broadband service providers in Scandinavia and Europe, as well as Asia-Pacific and Latin America. The PacketLogic product suite is available immediately through Procera Networks' sales team and the worldwide resellers of both companies. The first product jointly developed by the two companies, Procera's OptimANA(TM) CP3603 converged traffic management platform, was introduced at the recent Interop Tokyo 2006 where it was named as a finalist for the Best of Interop award. This purpose-built system blocks and controls the invasive Asian applications SoftEther and Winny.

Doug Glader, the CEO of Procera Networks will continue to serve as CEO of the merged company. Sven Nowicki, formerly the CEO of Netintact, will serve as Executive Vice President and General Manager of Procera's Netintact division. As a part of the merger, Nowicki will also join the Procera Networks' Board of Directors."We are excited about the new combination of Procera Networks and Netintact," said Doug Glader. "Netintact has extensive reference accounts and enjoyed strong revenue growth through 2005 and 2006. We expect that growth to continue and believe that the merger with Procera will further accelerate that growth. Our expanded product line will allow our service provider customers to take actions to optimize the utilization of bandwidth, apply fairness policies, increase security and postpone unnecessary network investments, while simultaneously increasing revenue by offering a broader range of service options to customers."

"The new Procera Networks with its global organization is much better suited to exploit the tremendous strengths of the PacketLogic line of products," said Sven Nowicki. "I believe that the merged company will give us the ability to penetrate the U.S. market and give us the capability to win and manage the largest accounts across North America and worldwide.

"The PacketLogic product suite is based on DRDL(TM), a Netintact-developed deep flow inspection (DFI) engine, which is the most accurate, port-independent network traffic identification system available today. DRDL data is used in PacketLogic to monitor network traffic in real time, perform bandwidth management, apply granular Layer 7 filters and analyze traffic patterns. PacketLogic also has the capability for xSPs to differentiate their broadband services based on, for example, bandwidth rate, access or denial of applications and/or volume of delivery.

Procera Networks

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