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F5 Networks Announces Results for Third Quarter of Fiscal 2007

Board of Directors Approves Two-for-One Forward Stock Split

F5 Networks, Inc. (NASDAQ: FFIV) - For the third quarter of fiscal 2007, ended June 30, F5 Networks announced revenue of $132.4 million, up 4 percent from $127.6 million in the prior quarter and 32 percent from $100.1 million in the third quarter of fiscal 2006. Net income was $21.8 million ($0.51 per diluted share), compared to $20.0 million ($0.47 per diluted share) in the prior quarter and $17.0 million ($0.41 per diluted share) in the third quarter a year ago.

Representing the company's 18th consecutive quarter of sequential revenue growth, results were within the company's guided revenue range and above its published earnings target. According to F5 president and chief executive officer, John McAdam, bookings outpaced revenue during the quarter, resulting in a positive book-to-bill at quarter-end.

In addition to solid revenue and earnings growth, the company continued to strengthen its balance sheet during the third quarter. Deferred revenue, principally from service maintenance contracts, grew 11% compared to the prior period to $83.2 million. Cash flow from operations was $38.2 million, and the company ended the quarter with $633 million in cash and investments.

Commenting on the current quarter, McAdam said he believes F5 is positioned for a strong finish to fiscal 2007. "For a variety of reasons, including seasonal strength in North America, Japan and the U.S. Federal market, Q4 is typically our strongest quarter. We also expect to begin seeing a significant return on the investments we made in expanding our sales organization during the first half of the year."

For the fourth quarter of fiscal 2007, ending September 30, McAdam said management has set a revenue goal of $142 million to $144 million with an earnings target of $0.53 to $0.55 per diluted share.

Two-for-One Forward Stock Split

F5 also announced today that its Board of Directors has approved a two-for-one forward stock split of the Company's common stock. This stock split will be effected by the issuance of a dividend of one share of F5 common stock for every share of its common stock issued and outstanding as of the record date of August 10, 2007. New shares of F5 common stock resulting from the stock split will be issued by F5 transfer agent, American Stock Transfer, and F5 common stock will begin trading on the Nasdaq Global Select Market on a split-adjusted basis on August 20, 2007. Following the stock split, F5 will have approximately 84.2 million shares issued and outstanding, based on the number of shares outstanding as of July 23, 2007. Reflecting the effect of the stock split, management's earnings guidance of $0.53 to $0.55 per diluted share referenced above translates to $0.27 to $0.28 per diluted share on a post-split basis. In addition, F5 will amend its articles of incorporation to increase its authorized number of shares of common stock from 100 million shares to 200 million shares concurrent with the stock split.

If a shareholder is contemplating a sale of F5 shares between the record date and the payment date, he or she should consult a broker regarding entitlement to the split shares.

About F5 Networks

F5 Networks is the global leader in Application Delivery Networking. F5 provides solutions that make applications secure, fast and available for everyone, helping organizations get the most out of their investment. By adding intelligence and manageability into the network to offload applications, F5 optimizes applications and allows them to work faster and consume fewer resources. F5's extensible architecture intelligently integrates application optimization, protects the application and the network, and delivers application reliability - all on one universal platform. Over 10,000 organizations and service providers worldwide trust F5 to keep their applications running. The company is headquartered in Seattle, Washington with offices worldwide. For more information, go to www.f5.com.

Forward Looking Statements

Statements in this press release concerning the continuing strength of F5's business, sequential growth, the target revenue and earnings range, demand for application delivery networking and other statements that 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: customer acceptance of our new traffic management, security, application delivery and WAN optimization offerings; the timely development, introduction and acceptance of additional new products and features by F5 or its competitors; competitive pricing pressures; increased sales discounts; F5's ability to sustain, develop and effectively utilize distribution relationships; F5's ability to attract, train and retain qualified product development, marketing, sales, professional services and customer support personnel; F5's ability to expand in international markets; and the unpredictability of F5's sales cycle.

F5 has no duty to update any matters discussed in this press release. More information about potential risk factors that could affect F5's business and financial results is included in the company's annual report on Form 10-K for the fiscal year ended September 30, 2006, and other public filings with the Securities and Exchange Commission.

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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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