SOURCE: Procera Networks

August 21, 2006 12:55 ET

Procera Networks Completes Acquisition of Netintact AB

LOS GATOS, CA -- (MARKET WIRE) -- August 21, 2006 -- Procera® Networks, Inc. (OTCBB: PRNW), a pioneering developer of application-driven converged network platforms, announced that it has completed its acquisition of Netintact AB. The acquisition enables Procera to broaden its product line and add highly qualified technical personnel. Procera will immediately increase its revenue stream and customer base with Netintact's PacketLogic product line, a powerful suite of flow-based IP mission-critical traffic and service management solutions.

Netintact has more than 150 medium and large reference customers in Scandinavia, Europe, Asia-Pacific and Latin America servicing broadband service providers such as telcos, ISPs, higher education and hospitality. Procera's sales team has been enjoying strong initial customer acceptance of the PacketLogic product in the U.S. and worldwide.

As announced upon the signing of a definitive agreement with Netintact on June 29, 2006, Doug Glader will remain President and CEO of the combined company, while Sven Nowicki will serve as the Executive Vice President and General Manager of Procera's new Netintact/PacketLogic division and join Procera's Board of Directors. Procera been selling the PacketLogic product for the past eight weeks and expects to report revenue from those activities as well as from the other worldwide Netintact customers in the third quarter ending on October 1, 2006.

Under the terms of the agreement, Procera issued and delivered approximately 16 million shares of common stock and approximately 700,000 warrants to purchase Procera common stock to Netintact shareholders. In exchange, Netintact shareholders tendered 100 percent of the issued and outstanding shares of Netintact to Procera. An additional 1.8 million shares of Procera common stock were issued and are being held in escrow for the next 12 months, and 2.8 million shares of Procera common stock may be issued if certain performance milestones are achieved in the next 12 months.

The transaction is accounted for in accordance with generally accepted accounting principles. The Netintact/PacketLogic division will operate as a wholly owned subsidiary of Procera Networks.

About PacketLogic

PacketLogic™ is a flow-based intelligent network traffic and service management system. The core of the product suite is the identification engine DRDL™ (Datastream Recognition Definition Language) that provides the most accurate network traffic identification available today. DRDL performs deep flow inspection (DFI) to aggregate granular flow properties. The data from DRDL is utilized by the five PacketLogic modules -- Surveillance (real-time traffic monitoring), Traffic Shaping (bandwidth management), Firewall (granular Layer 7 filtering), Statistics (traffic analyzing) and the Service Management module NetAccess. PacketLogic was launched in October 2001 and is currently deployed at more than 150 service providers (xSPs) and telcos worldwide.

About Procera Networks

Founded in 2002, Procera Networks, Inc. is a global provider of networking infrastructure equipment. Procera's OptimIP™ family of intelligent network appliances enables businesses to dramatically reduce the total cost associated with networking, security and compliance. With Procera appliances, an enterprise can improve the efficiency of mission-critical applications (QoS), control how and what data is transported through the network, and determine which employees or workgroups can access data or specific applications. Procera's new OptimANA™ Convergence Platform Series enables systems developers to easily integrate wire-speed, application-oriented intelligence to extend the market reach of their existing server-based software, security gateways and network appliances. For more information, visit http://www.proceranetworks.com.

NOTE: Procera is registered trademark and OptimIP, OptimANA, PacketLogic and DRDL are trademarks of Procera Networks. All other names are or may be trademarks of their respective owners.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the "Act"). In particular, when used in this press release, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, the parties agreeing and entering into a final agreement for the proposed transaction, the ability of Procera and Netintact to successfully combine their respective operations and products, Netintact receiving shareholder approval for the transaction, the ability of Procera and Netintact to commercialize the applicable technology and introduce products and the acceptance of those products by the market, market conditions, the general acceptance of Procera's and Netintact's products and technologies, competitive factors, timing and other risks described in Procera's reports and filings with the SEC (Securities and Exchange Commission) from time to time. Procera assumes no obligation to update any forward-looking statement.

Contact Information

  • Contact:
    Jeff Gigoux
    Procera Networks, Inc.
    408.354.6736
    Email Contact

    John Liviakis
    (Investor Relations)
    Liviakis Financial Communications Inc.
    415.389.4670

    Steven Beedle
    ZNA Communications
    831.425.1581
    Email Contact