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F5 Networks Announces Record First Quarter Results

F5 Networks, Inc. (NASDAQ: FFIV), a leading provider of integrated Internet traffic and content management solutions, today announced financial results for its first quarter of fiscal 2000, which ended December 31, 1999.

Revenue for the first quarter of fiscal 2000 increased to $19.2 million from $2.7 million in the first quarter of fiscal 1999, representing an increase of 611%. Net income for the first quarter of fiscal 2000 was $4.2 million, or $0.18 per diluted share compared to a net loss of $2.2 million, or $(0.36) per diluted share for the comparable period one year ago.

First quarter highlights include:

  • F5 Networks announced an expanded alliance agreement with Exodus Communications (Nasdaq: EXDS). Under this agreement, F5 Networks will provide fully managed load balancing services to customers located in the Exodus global network of Internet Data Centers.
  • At the end of the first quarter, F5 Networks had 1,175 customers, up from 750 customers at the end of the previous quarter.
  • A strategic agreement was signed with 3Com Corporation (Nasdaq: COMS) which will provide F5's full suite of Internet Traffic Management products to 3Com's enterprise customers.
  • F5 Networks received the prestigious "Editor's Choice" award for its 3DNS® Controller from Network Computing Magazine. The 3DNS Controller is a high availability, intelligent load balancing solution for geographically distributed Internet sites and data centers.
  • At the Fall Internet World '99, F5 Networks received the "Best of Show" award for its global/SITE™ Controller, a operating system-independent appliance that manages the publishing, distribution, synchronization and replication of file-based content and applications to local and geographically distributed Internet sites.

"We are very pleased with our strong sales growth and profitability," said Jeffrey S. Hussey, Chairman, President and Chief Executive Officer of F5 Networks. "The sustained worldwide growth of business-to-business Internet communications and e-commerce continues to drive our market. To meet our customers' rapidly evolving requirements, we continue to develop the F5 product portfolio and enhance the performance of our products. We also continue to broaden our strategic relationships to expand our distribution channels and provide best-of-breed Internet traffic and content management products and services."

About F5 Networks

F5 Networks is a leader in Internet Traffic and Content Management products. The Company's integrated suite of high-performance products automatically and intelligently manage Internet traffic and content to improve the availability and performance of mission-critical Internet servers and applications. F5 Networks helps companies avoid the risk of being burdened with ill-performing networks that do not meet end user expectations, while enabling network administrators to boost the control and predictability of their infrastructure. F5 Networks' products are designed to provide a new level of fault tolerance by shielding users from system failure; optimizing response times to user requests and data flow; and cost-effectively managing an organization's Internet infrastructure. The company is headquartered in Seattle, Washington, and has offices in Atlanta, Boston, Chicago, Dallas, Columbus, Los Angeles, New York, San Francisco, Toronto, Washington, D.C., Australia, Hong Kong, Japan, The Netherlands, Singapore, Sweden and the United Kingdom. F5 Networks is located on the web at www.f5.com.

Statements in this press release concerning future activities under F5's strategic alliance agreements, continued development of F5's product portfolio and future enhancements to F'5 products, continued growth in the market for Internet traffic and content management solutions, and other statements which are not historical facts are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: the company's limited operating history; variability of the company's operating results; market acceptance of the company's Internet traffic and content management products; the company's timely development of new products and features; the company's ability to manage its growth; the company's ability to maintain and develop distribution relationships; competition in the Internet traffic and content market; the company's ability to expand in the international markets; unpredictability of the company's sales cycle and other risk factors referenced in the company's public filings with the Securities and Exchange Commission (SEC). In particular, see the section entitled "Risk Factors" in the company's annual report on Form 10-K filed with the SEC on December 28, 1999.

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This press release may contain forward looking statements relating to future events or future financial performance that involve risks and uncertainties. Such statements can be identified by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of such terms or comparable terms. These statements are only predictions and actual results could differ materially from those anticipated in these statements based upon a number of factors including those identified in the company's filings with the SEC.

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