Peribit Networks Acknowledged As Silicon Valley’s Fastest Growing Private Company By California Assemblywoman Sally Lieber

WAN Optimization Leader Cited as Bellwether for Improving Silicon Valley Economy

Santa Clara, Calif. – December 13, 2004 - Peribit Networks, the leader in application delivery over the WAN, was cited as Silicon Valley’s fastest growing private company by California Assemblywoman Sally Lieber at a company function on December 6, 2004. Joining Ms. Lieber were Assembly member Gene Mullin, Chair of Select Committee on Biotechnology, Santa Clara County Supervisor Jim Beall, and Santa Clara Mayor Patricia Mahan, all of whom pointed to Peribit’s rapid and continuing growth as a key barometer of the steadily improving Silicon Valley economy.

“I’m delighted to be recognized as this region’s fastest growing privately held technology company, said Jef Graham, president and CEO of Peribit Networks. I believe we are symbolic of Silicon Valley’s continuation to be the best place to birth and build great new firms of the 21 st century.

“As a member of the California assembly representing Santa Clara County, I’m mindful of how even subtle changes in Silicon Valley’s economy can impact the well being of my constituency,” said Assemblywoman Sally Lieber. “Given Peribit Networks’ exceptional performance, we wanted to take this opportunity to declare that the Silicon Valley economy is on a definite upswing which bodes well heading into 2005.”

About Peribit Networks

Peribit Networks improves customer business efficiencies by resolving the technical limitations of WANs, increasing available bandwidth, and accelerating applications. The Peribit PeriSphere architecture is the industry’s only integrated WAN optimization architecture that enables application rollout and webification, data center consolidation, and improves disaster recovery/backup and regulatory compliance for enterprise IT organizations. The Peribit Sequence Reducer and Sequence Mirror platforms combined with the SRS Software System and PeriScope CMS Central Management System software provide significant, measurable return on investment within months of deployment. Recently named Silicon Valley’s second fastest growing private company for the period of 2001 to 2003, Peribit Networks 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.