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Filed by Visual Networks, Inc.
Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed
pursuant to Rule 14a-12 of the Securities Act of 1934.
Subject Company: Visual Networks, Inc.
Commission File No. 000-23699
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[Visual Logo]
e-Business Supply Chain
Enterprise/.com
Application Service Provider
Internet Service Provider
Network Service Provider
Service Providers are Integral to e-Business Service Quality is Fundamental
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[Visual Logo]
Service Quality
Availability + Performance
Why?
Competition is a Click Away
Lost Eyeballs
Lost Revenue
Lost Productivity
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[Visual Logo]
Service Management Hierarchy
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Service Goal Business Impact Market Segment
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Cost How are the resources being Service Planning
used? [graphic] Service Policy
Who needs more resources?
How are resource needs
changing?
- ------------------------------------------------------------------------------
Performance How well is the service [graphic] Systems
performing? Performance
Why is response time slow? Network
Who/what is impacted by Performance
poor performance? Application
Performance
- ------------------------------------------------------------------------------
Availability Is the service running? [graphic] Fault Management
Why not? Event Management
Who/what is impacted?
- ------------------------------------------------------------------------------
</TABLE>
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[Visual Logo]
Explosive Market Opportunity
Internet Infrastructure Software Spending
$7.3 B $29.1 B
1998 2003
Source: International Data Corporation, October 1999
Bank of America Securities, February 2000
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[Visual Logo]
Why Avesta?
Expands Service Management Portfolio
Expands Addressable Market
Next Generation Technology
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[Visual Logo]
Avesta...
Expands Service Management Portfolio
Fault & Event Management
Application Monitoring
Server & Mainframe Monitoring
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[Visual Logo]
Avesta...
Expands Addressable Market
Enterprise
.com
Application Service Providers
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[Visual Logo]
Avesta...
Next Generation Technology
Scalable
Network, Systems, and Applications Availability
Easy to Deploy
Business Impact Analysis
Tightly Integrated Discovery & Root Cause
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[Visual Logo]
Visual's Product Portfolio
<TABLE>
<S> <C> <C>
- --------------------------------------------------------------------------
Service Goal Market Segment
- --------------------------------------------------------------------------
Cost Visual UpTime [graphic]
- --------------------------------------------------------------------------
Visual UpTime
Visual IP InSight
Performance e Watcher/e390 [graphic]
- --------------------------------------------------------------------------
Visual Trinity
Availability e Watcher /e390 [graphic]
- --------------------------------------------------------------------------
</TABLE>
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[Visual Logo]
Visual in the e-Business
Supply Chain
<TABLE>
<S> <C> <C>
- ----------------------------------------------------------------------------
Cost Enterprise/.com Fed-Ex
Performance Citibank
Availability Amazon
- ----------------------------------------------------------------------------
Application Service Exodus
Provider Alltel
USI
- ----------------------------------------------------------------------------
Internet Service Concentric
Provider Mindspring
Prodigy
- ----------------------------------------------------------------------------
Network Service Provider AT&T
MCI
Spring
- ----------------------------------------------------------------------------
</TABLE>
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[Visual Logo]
The Visual Advantage
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Visual Muse Concord Netscout
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Enterprise/.com Performance Performance Performance
Availability Cost
Cost
- --------------------------------------------------------------------------
Application Performance Performance Performance
Service Availability Cost
Provider Cost
- --------------------------------------------------------------------------
Internet Performance Availability
Service Availability
Provider Cost
- --------------------------------------------------------------------------
Network Performance Availability
Service Availability
Provider Cost
- --------------------------------------------------------------------------
</TABLE>
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[Visual Logo]
Historical Quarterly Revenue
[a chart showing Q1'97 through Q4'99 revenue appears here]
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[Visual Logo]
Pro Forma Annual Revenue
[a chart showing pro forma annual revenue from 1995 through 2001E appears here]
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Visual Networks will be filing a proxy statement/prospectus and other relevant
documents relating to the proposed acquisition with the Securities and Exchange
Commission. Investors are urged to read the proxy statement/prospectus, together
with any amendments to it and any other relevant documents filed by Visual
Networks, when they become available because they will contain important
information. Investors can obtain these and any other documents filed by Visual
Networks with the Securities and Exchange Commission without charge at the
Internet web site of the Securities and Exchange Commission at
http://www.sec.gov. In addition, any documents that may be incorporated by
Visual Networks by reference in the proxy statement/prospectus will be available
without charge from Visual Networks as will be described in the proxy
statement/prospectus. You should read the proxy statement/prospectus carefully
before making a decision concerning the proposed acquisition.
