Juniper Reduces Guidance, Headcount

SUNNYVALE, Calif. -- Juniper Networks, Inc. (Nasdaq: JNPR), a leading provider of next-generation IP infrastructure systems, today presented a revised outlook for its second quarter results for the period which will end June 30, 2001. Juniper Networks expects revenue for the second quarter of 2001 to be approximately $200-$210 million, down from original guidance of $300-$330 million. These forecasted results represent an increase of almost 80% from the same period last year. We expect pro forma earnings per share to be approximately $0.08-$0.09. Given the current market and service provider industry conditions, Juniper Networks is implementing cost cutting measures, reducing our headcount by approximately 8-9% and taking a one-time charge of up to $45 million, which includes costs associated with the reduced headcount and a revaluation of our investment portfolio to better reflect the reduced valuation in our private and public investments. These measures will not compromise Juniper Networks innovation, market creation, or product development. "Obviously we would prefer to be in markets that grow without hesitation or pause," said Scott Kriens, Chairman and CEO of Juniper Networks. "However, we remain committed to and capable of running the business profitably and successfully under all conditions, including this current period of absorption. Juniper Networks has proven its ability to focus and execute since inception and this will remain our priority independent of business cycles." Juniper Networks Inc.