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F5 Networks Revises Fiscal Second Quarter Guidance

F5 Networks, Inc. (NASDAQ: FFIV), today announced that the company expects to post revenue of $27.1 million for the second quarter of fiscal 2002, ended March 31. This was below management's target range of $27.5 million to $29 million and essentially flat with revenue in the first quarter. The company also expects to post a loss of $0.06 to $0.08 per share versus a loss of $0.08 in the prior quarter and a targeted range loss of $0.04 to $0.06 per share. Actual results for the quarter will be announced on April 24 at the close of the market.

President and chief executive officer John McAdam said the revenue shortfall was due to a weakness in enterprise spending during March, resulting in lower than expected revenue from North America and its OEM partnership with Nokia Internet Communications. "We believe that the enterprise market will improve, but current results in North America reflect a cautious capital spending environment in uncertain economic times," McAdam said.

Although revenue was disappointing, McAdam said the company continued its focus on tightly managing expenses to improve its operating model and strengthen its balance sheet and expects positive cash flow from operations with sequential improvement in gross margin for the quarter.

McAdam said the company will discuss the results of its second fiscal quarter in detail and provide updated guidance for fiscal 2002 at its regularly scheduled conference call on April 24.

The company will hold a conference call today at 6:00 a.m. Pacific Time (9:00 a.m. Eastern) to provide additional information and answer questions about the quarter. A replay of the call will be available for 24 hours beginning at 9:00 a.m. Pacific Time. Following is the information for the call and replay:

Live Dial In Info:

US/Canada # = 800-489-8621
International # = 706-634-0855

Call Leader = John McAdam
Conference ID = 3770517

Replay Dial In Info:

US/Canada # = 800-642-1687
International # = 706-645-9291

Conference ID = 3770517

About F5 Networks

F5 Networks is the leader in Internet Traffic and Content Management (iTCM), and delivers application aware networks through its open Internet Control Architecture. F5 features the industry's leading set of integrated products and services that manage, control and optimize Internet traffic and content. Our solutions automatically and intelligently deliver the best possible Internet performance, availability and content distribution for service providers, enterprises and e-businesses. Our products remove bandwidth congestion and optimize the availability and speed of mission-critical Internet servers and applications, including web publishing, content delivery, e-commerce, caching, firewalls and more. Our solutions are widely deployed in large enterprises, the top service providers, financial institutions, government agencies, healthcare, and portals throughout the world. The company is headquartered in Seattle, Washington, and has offices throughout North America, Europe and Asia Pacific. F5 Networks is located on the web at www.f5.com

Forward Looking Statements

Statements in this press release concerning F5's expected revenue and earnings (loss) per share for the second quarter of fiscal 2002, improvement in the enterprise market, improved operating model, strengthened balance sheet, positive cash flow from operations and improvement in gross margin for the quarter 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, competitive pricing pressures, increased sales discounts, the introduction of new products by F5 or its competitors or other factors; F5's ability to sustain or develop distribution relationships; F5's ability to timely develop new products and features; F5's ability to attract, train and retain qualified marketing and sales and professional services and customer support personnel; F5's ability to expand in the international markets and the unpredictability of F5's sales cycle. 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 10K for the fiscal year ended September 30, 2001, 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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