NetScaler Attracts $20 Million from Leading Investors in Oversubscribed Expansion Round

Focus Ventures and Granite Global Ventures Join Existing Blue-Chip Investors as Company Continues Expansion into Enterprise and Internet Properties

HostReview.com
Tuesday, March 16, 2004; 12:00 AM

SANTA CLARA, CA (March 16, 2004) - NetScaler, Inc., a pioneer in application delivery systems, today announced that it has raised $20 million in an expansion round of funding. Led by Focus Ventures, this oversubscribed round also included Granite Global Ventures as well as existing investors Sequoia Capital, Goldman Sachs & Co., Gabriel Venture Partners, and Bay Partners.

"We feel fortunate to have found a rare company such as NetScaler that combines all of the business and technology ingredients needed for success in today's highly competitive, sometimes uncertain marketplace," states James H. Boettcher, general partner, Focus Ventures. "NetScaler's highly disciplined management team has led the company to a solid, sustained growth path by focusing on the long-term success of its stellar base of enterprise and public web site customers, while taking advantage of its highly differentiated technology through strong, continued innovation."

NetScaler achieved a record year for new bookings in calendar year 2003 with year-over-year growth in net revenues soaring to over 400 percent. The company is addressing and defining the market for application delivery, a rapidly emerging new category that represents the next generation of secure traffic management devices and for which market opportunity will exceed $2.2 billion by 2005 and approach $3.6 billion by 2007 according to market research firms IDC and Infonetics Research. Over the past year alone, NetScaler has reached significant company milestones, including:

· More than doubling of its worldwide customer base, with strong penetration into the enterprise sector;
· Expansion of product family to address full market opportunity, from SMBs (small-to-medium sized businesses) to Global 2000 enterprises;
· Addition of key feature sets such as SSL VPN to extend its leadership in bringing to market an integrated application delivery platform;
· Winner of both the application-layer content switching group test and the industry’s most comprehensive SSL VPN group test independently commissioned by Light Reading;
· Gartner lists company in the visionary quadrant of its Magic Quadrant for Web-enabled Application Delivery pointing to its ability to "now deliver strong solutions to optimize enterprise applications."

"We continue to see very strong demand both domestically and internationally for application delivery products," says B.V. Jagadeesh, president and C.E.O., NetScaler. "This late stage funding will primarily serve to support our continued success in penetrating Global 2000 enterprise accounts by further solidifying our already strong financial position and accelerating our plans to expand globally."

NetScaler is a late stage, privately-held networking company backed by a stellar list of some of Silicon Valley's most respected venture capitalists. The company has received considerable attention from both press and analyst communities for its technology innovation and success at large-scale deployments with high-profile customers such as Google, Amazon.com, 7-Eleven, MLB Advanced Media LP (site of Major League Baseball), ShopNBC, and many more.

NetScaler's customer base represents three of the top five Internet properties in the world and approximately 75 percent of all domestic (U.S.) Internet searches run through NetScaler 9000 Series products, according to CyberAtlas. NetScaler's demonstrated leadership in accelerating and securing application delivery for content providers and e-commerce operations has been a significant factor in attracting major enterprise customers from all vertical markets.

About Focus Ventures:
Focus Ventures is the leading expansion stage venture capital firm that invests in emerging market leaders in the software, semiconductor and communications industries. Focus Ventures currently manages $570 million, having closed its first fund in October 1997 and Focus Ventures II in December 1999. Focus Ventures offers its portfolio companies access to high quality partners in Asia and an extensive network of resources focused specifically on driving top line revenue growth through customer introductions and by establishing distribution channels, joint ventures and licensing arrangements. Since the firm's inception, Focus Ventures has invested in 75 companies and has had 20 IPOs and seven acquisitions by public companies. A select number of portfolio companies that have gone public include: Active Software, Agile Software, Alteon WebSystems, BroadBase Software, Chordiant Software, Commerce One, Copper Mountain Networks, Corio, CoSine Communications, Interwoven, Loudcloud, Niku, Pixelworks, and Verisity. For more information on Focus Ventures, visit www.focusventures.com or call 650.325.7400.

About Granite Global Ventures
Granite Global Ventures is a leading expansion stage investor focused on information technology and healthcare investments and was founded in partnership with Venrock Associates to bring differentiated value to entrepreneurs. Operating from offices in Menlo Park, CA, Singapore and Shanghai, Granite Global Ventures has created a strong global network to provide business development assistance to its portfolio companies. For more information, visit the Granite Global Ventures Web site at http://www.ggvc.com.

About NetScaler
NetScaler provides networking systems that enable the fast and secure delivery of applications by integrating a unique suite of optimization, security and switching capabilities. NetScaler's 9000 Series products deliver improved application performance and hardened security for many of the world's largest enterprises, content providers and e-commerce vendors while greatly reducing total cost of ownership.

NetScaler headquarters are in Santa Clara, California. For more information, visit http://www.netscaler.com.

Contact NetScaler Contact: John Oh NetScaler, Inc. (408)987-8712 joh@netscaler.com NetScaler, Request Switch and Request Switching are trademarks of NetScaler, Inc. in the United States and other countries. All other companies and products mentioned herein may be trademarks of their respective holders.