Peribit Boosts Branch Office WAN Application Performance With New Low-Cost Sequence Reducer Platform

New SR-15 Leverages PeriSphere™ Architecture and Updated PeriScope™ Management Software to Address Fast-Growing Remote Site Market Opportunity

SANTA CLARA, CA – October 25, 2004 - Peribit Networks, the leader in application delivery over the WAN, today announced the introduction of the SR-15 Sequence Reducer™ platform. The SR-15 sets the industry benchmark for entry-level pricing and improves application performance for branch offices and remote sites that suffer from limited WAN bandwidth and high latency. Peribit also delivered a major new version of its PeriScope™ Central Management System™ software that automates deployment and centralizes the configuration, management, and monitoring of all Peribit platforms throughout an enterprise’s branch offices and data centers.

In conjunction with today’s announcement, Peribit is announcing a joint technology and marketing partnership with iDirect, the leading developer of satellite-based broadband access solutions for enterprise, government, carrier and educational customers as well as satellite network operators. iDirect specializes in providing those businesses with fast, flexible, and geographically dispersed two-way IP-based network services. The two companies will combine the newly introduced Peribit SR-15 with the iDirect iFINITYseries™ to accelerate application performance over satellite services. The combined solution provides customers with faster application response times, automated deployment, and Quality of Service features for prioritizing critical applications – all in an economical package.

Please See Today’s Accompanying Annnouncement Regarding The Peribit/iDirect Partnership.

According to market research firm InStat/MDR, more than two million remote offices exist in the United States, and analysts at JMP Securities estimate that another two million branch offices exist internationally. Most of these remote offices are serviced by WAN connections slower than 1 Mbps, a bandwidth level that causes application performance to suffer. “With 58% of enterprise employees working remotely at branch offices, enterprises need a way to deliver important enterprise applications with LAN-like performance levels without increasing the budget for WAN services,” says Jef Graham, President and CEO of Peribit Networks. “These sites have a considerable productivity requirement that has to be addressed.”

New SR-15 platform opens new market opportunities; sets industry-leading entry price

Peribit meets the needs of these far-flung branch offices with the SR-15, enabling enterprises to more tightly integrate those locations into their global processes. The SR-15 is the industry’s first WAN optimization platform to offer a 64 Kbps license with an industry-leading entry price of $1,895. With the addition of the SR-15, Peribit’s product family now provides the broadest support of WAN circuits, from remote office 64 Kbps links to data center 155 Mbps OC-3 circuits.

The SR-15 accelerates application performance for branch offices by taking full advantage of the Peribit PeriSphere architecture, which integrates interdependent technologies including next-generation compression, latency reduction, bandwidth management, path optimization, and visibility.

PeriScope CMS 5 enables auto-deployment and centralized management

The full range of SR products can be centrally managed by the upgraded PeriScope Central Management System software. PeriScope 5.0 enables IT managers to automate the deployment of and centralized the control and monitoring of as many as 2,000 distributed Peribit platforms, without the need for IT staff at each site.

The My Peribit™ portal in PeriScope 5.0 provides IT with a customizable view into WAN and application performance. IT staff can define which reports and which Peribit devices to view in this unique portal, which provides summary data about application and business operations across the WAN. IT can receive at-a-glance status about system health and key applications such as SAP, Exchange, Citrix, and web-based applications .

iDirect Partnership

The iDirect iNFINITI series TM based off of the company’s currently successful NetModem II+ remote and hub product line includes the 3000, 5000 and 7000 series of remote Very Small Aperture Terminal (VSAT) routers supporting different levels of user requirements as well as a family of line cards enabling network operators to support SCPC, Mesh and Star networks to multiple satellites all from a single hub chassis. The hub solutions built from the iDirect iNFINITI series TM platform will allow for scalability to multiple thousands of remote sites. To manage the entire network, operators will be able to use both the PeriScope Central Management System software and the iDirect scalable Network Management System (NMS) architecture to support global network customers with a single NMS manager for worldwide implementation.

Pricing and Availability

The SR-15 will ship in November and pricing will start at $1,895. PeriScope CMS 5 is available immediately and pricing starts at $5,000.

About Peribit Networks

Peribit improves customer business efficiencies by resolving the technical limitations of WANs, increasing available bandwidth, and accelerating applications. Peribit .s PeriSphere architecture is the industry .s only integrated WAN optimization framework that enables application rollout and webification, data center consolidation, and improves disaster recovery/backup and regulatory compliance for enterprise IT organizations. Peribit's Sequence Reducer and Sequence Mirror platforms combined with Peribit's SRS Software System and PeriScope CMS Central Management System provide significant, measurable return on investment within months of deployment. A privately held company, Peribit is funded by top-tier investors Accel Partners, Foundation Capital, and Mayfield. Headquartered in Santa Clara, California, Peribit has operations throughout North and South America, Europe, Middle East, Africa and Asia. For more information, please visit the company's website at www.peribit.com.

Peribit, the Peribit logo, PeriSphere, PeriScope, Molecular Sequence Reduction, MSR, Network Sequence Mirroring, NSM, Packet Flow Acceleration, PFA, Policy-Based Multipath, PBM, Sequence Reducer, SR, Sequence Mirror, SM, Sequence Reduction System, SRS, Central Management System, CMS, and My Peribit are trademarks or registered trademarks of Peribit Networks. All other products and services are trademarks, registered trademarks, service marks or registered service marks of their respective owners. © 2004 Peribit Networks, Inc. All rights reserved.