SUNNYVALE, Calif. -- Juniper Networks, Inc. (NASDAQ-JNPR) today announced the completion of the independent investigation related to Juniper Networks' historical stock option granting practices. This comprehensive seven-month review was conducted by Juniper Networks' Audit Committee, which was assisted by both independent counsel and forensic accountants. The investigation involved the review of more than 785,000 documents. Juniper Networks' Board of Directors has reviewed and adopted the Audit Committee's findings.

As previously announced, the Company reached a conclusion that the actual measurement dates for financial accounting purposes of numerous stock option grants issued in the past differ from the recorded grant dates of such awards. The Audit Committee determined that there were numerous instances in which grant dates were chosen with the benefit of hindsight as to the price of the Company's stock, so as to give favorable prices. In this regard, the Audit Committee identified serious concerns regarding certain former management. In addition, formal documentation often lagged the referenced grant date and there was insufficient exercise by management of responsibility for the stock option process. The Company currently anticipates that it will record additional non-cash charges for stock-based compensation expense of approximately $900 million, 99.9 percent of which relate to options granted between June 9, 1999 and December 31, 2003.

Juniper Networks' CEO, Scott Kriens, received two stock option awards with measurement date issues. However, both options were canceled unexercised in 2001. Kriens has not exercised any stock options since 1998, approximately a year before the Company's IPO.

The Audit Committee and the Board of Directors expressed their continuing confidence in Scott Kriens and the current management of the Company.

'As the leader of this company, I would like to express our regret, to everyone who relies on Juniper, for the difficulties this situation has caused for us all. In prior years, we should have had better stock option granting processes, controls and oversight in place, and we did not,' said Scott Kriens, Juniper's CEO. 'While we cannot undo the past, we will focus going forward on the filing of our financial statements, further improving the robustness of the Company's stock option granting procedures, the ongoing cooperation with government agencies and the continued execution of our business strategy.'

The Company intends to file its Form 10-Q for each of the quarters ended June 30, 2006 and September 30, 2006, and any other required financial restatements during the first quarter of 2007. Juniper received a written notification from the staff of The NASDAQ Stock Market that the NASDAQ Listing Qualifications Panel has granted the Company's request for continued listing on The NASDAQ Stock Market, subject to the conditions that the Company shall file on or before February 12, 2007 a written summary of the audit committee's finding and its Forms 10-Q for the quarters ended June 30, 2006 and September 30, 2006. It is our intent to come into compliance with the NASDAQ listing qualifications.

Juniper Networks Inc. (NYSE: JNPR)