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Peribit And iDirect Partner To Deliver Bandwidth And Application Performance-Enhancing Solutions For Satellite Connections

Joint Solutions Combine Peribit’s New SR-15 Sequence Reducer with iDirect’s iFINITY™ Platforms

SANTA CLARA, CA – October 25, 2004 -- Peribit Networks, the leader in application delivery over the WAN, today announced 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. The two companies will combine the newly introduced, Peribit SR-15 Sequence Reducer product with the newly launched iDirect iNFINITI seriesTM hub and remote satellite networking products to accelerate application performance over satellite services that can now be auto-deployed in remote sites with no IT resources, including environmentally hostile locations.

Today, Peribit introduced the new entry-level SR-15 platform specifically designed for branch offices and remote sites in need of boosting application performance over links with limited bandwidth and high latency as commonly found on satellite links. 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.

See Today’s Announcement On Peribit’s Launch Of The SR-15 Sequence Reducer Platform.

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

By combining the Peribit and iDirect systems, network service operators and customers have a complete solution for increasing application performance over satellite links that is cost effective and simple to install.

“The Peribit/iDirect solution is closing the performance gap between satellite and land-based WAN services such as lease line Frame Relay and IP VPN,” says Warren Brown, vice president of marketing with iDirect. “We’re seeing two-to-four fold increases in bandwidth and considerable increase in application performance. This is slashing response times of ERP/CRM, database, office automation, email and storage applications including remote data replication and backup and disaster recovery.”

"We have direct experience integrating the Peribit SR and iDirect products," said Paul Wright, Vice President for Operations at Network Enterprise. "We performed compatibility testing between the two company's platforms and testing in a data center replication environment enabled us to deliver a 4-times bandwidth increase."

The SR-15 takes full advantage of the Peribit PeriSphere™ architecture which integrates interdependent technologies that feature Molecular Sequence Reduction™ (MSR™), a patent-pending next-generation compression technology to increase satellite bandwidth capacity by up to four times, without the need for a network upgrade. It also supports latency reduction through Peribit’s Packet Flow Acceleration to overcome the impact of latency on TCP-based applications, which is especially important to remote sites connected via satellite-based WAN links. In addition, the SR-15 is based on the PeriSphere bandwidth management capabilities which apply essential Quality of Service and bandwidth allocation services. These integrated technologies work in concert with the iDirect platform to deliver the most complete solution to enable remote sites to improve their application performance levels dramatically on existing satellite links while keeping costs in check.

The Peribit services can be centrally managed by the Peribit PeriScope™ Central Management System™ software which was also introduced today. PeriScope Version 5.0 enables IT managers to configure, manage and monitor data center-based, as well as remotely deployed, Peribit Sequence Reducers distributed across an enterprise. The iDirect iNFINITI series TM equipment can all be managed by iDirect’s iMonitor TM and iBuilder TM scalable network management system (NMS) which enables network operators to manage multiple networks from a single NMS.

"Today’s partnership with iDirect opens new opportunities for Peribit in the satellite market while increasing the value of the iDirect iNFINITI seriesTM products,” says Mike Banic, vice president of corporate marketing with Peribit. “Joint iDirect/Peribit customers will be the beneficiaries of a dramatically improved WAN infrastructure that actually simplifies their network operations while saving money on recurring link costs."

About iDirect Technologies

iDirect Technologies designs, develops, and markets satellite-based broadband access solutions targeted at the enterprise, government, carrier and educational sectors that have the need for fast, flexible, and geographically dispersed two-way internet/intranet access. The company has developed technology solutions that combine high performance, worldwide availability, and ease of installation, high reliability, and low cost to end customers. In addition, iDirect solutions offer unprecedented efficiencies, increased revenue opportunities and higher per customer gross margins to satellite network operators. iDirect was included in the 2003 and 2004 Inc. 500 list of the country’s fastest growing entrepreneurial firms, as well as the Deloitte & Touche Technology Fast 500 list of the fastest-growing U.S. technology companies and one of Virginia’s top 50 fastest growing technology companies for both 2003 and 2004. iDirect operates its corporate headquarters in Herndon, Virginia and has regional offices in Europe, Asia, and covering Latin America. Additional information is available on the company website at www.idirect.net.

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.