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EXHIBIT 99.1
THURSDAY JULY 13, 4:23 PM EASTERN TIME
COMPANY PRESS RELEASE
PACKETEER ENTERS INTO DEFINITIVE AGREEMENT TO ACQUIRE INTERNET CACHING AND
ACCELERATION INFRASTRUCTURE SOFTWARE COMPANY
CUPERTINO, Calif.--(BUSINESS WIRE)--July 13, 2000--Packeteer(R), Inc.
(NASDAQ:PKTR - news), a leading provider of Internet application infrastructure
systems, today announced that it has signed a definitive agreement to acquire
Workfire Technologies International, Inc. ("Workfire"), a developer of
award-winning software for accelerating the performance of business-critical web
applications and content over the Internet, intranets and extranets. Under the
terms of the agreement, Packeteer will exchange 2,000,000 shares of Packeteer
common stock for all of Workfire's outstanding common stock and options. The
merger is expected to qualify as a tax-free reorganization and the parties
expect to account for the transaction as a purchase. Robertson Stephens acted as
the exclusive financial advisor to Packeteer in this transaction.
Closing of the merger is subject to certain closing conditions and approval of
the stockholders of both Workfire and its parent corporation, Workfire.com.
Workfire.com and certain stockholders of Workfire.com have agreed to vote their
shares in favor of the merger. The transaction is expected to close in the
calendar quarter ending September 30, 2000, and is expected to be financially
accretive on a revenue per share basis in fiscal year 2001 with no anticipated
delay to quarterly break-even operating profitability. After the acquisition,
Workfire will continue to operate out of its facility in Kelowna, British
Columbia, Canada, as Packeteer's Internet Acceleration Products group.
"The Workfire acquisition is an important step forward in Packeteer's strategy
to provide a comprehensive portfolio of Internet application infrastructure
solutions that ensure the performance of Internet-enabled business applications
and content within enterprise and service provider environments," states Craig
Elliott, president and CEO of Packeteer. "Workfire brings to Packeteer key
Internet caching and acceleration technologies that complement and extend
Packeteer's existing application bandwidth, traffic and subscriber management
solutions."
"Workfire's Internet application acceleration software represents the next
technological wave for enhancing the performance of web-based applications. It
extends the benefits of today's caching solutions - which move content closer to
the edge of the Internet - by accelerating content delivery over the
bandwidth-limited last mile, producing significant improvements in end-to-end
performance," said Tom Taylor, founder and Chief Technology Officer of Workfire.
"We share Packeteer's vision for improving the quality of experience of
business-critical Internet applications and believe that the combined technology
suite will establish a new industry benchmark."
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Internet Application Acceleration
In recent years, the Internet has undergone explosive growth driven by an
unprecedented number of new business applications. These new "Internet
applications" link businesses to consumers and each other and have transformed
entire industries. Internet applications have also found their way into the
enterprise as more and more businesses retool their internal applications and
Information Technology (IT) infrastructure to align with the Internet Computing
model.
Workfire's software technology accelerates the transmission and rendering speed
of Internet applications by compressing traffic from end-to-end and dynamically
increasing the throughput of the low and medium speed connections. The software
does this using innovative dynamic, static and variant content caching together
with content-aware compression and transformation techniques for a twofold
increase in performance today. The software determines the type of content,
speed of access, and type of browser and automatically optimizes the speed of
delivery and rendering of information. By combining caching with compression,
Workfire technology accelerates delivery of business content and Internet
applications all the way to the user's desktop. This approach solves the last
mile problem of low to medium speed Internet connections that is not addressed
by today's reverse-proxy and network-based caching solutions.
Quality of Experience
With the growing population of broadband access, developers of Internet
applications for enterprise, e-business and e-commerce face a vexing problem: do
they optimize their site for the highest or lowest common denominator of access
speeds? A site optimized for the highest common denominator will provide a rich
and interactive quality of experience (QoX) for T1, xDSL and cable users, but
will significantly impair the performance of low and medium speed users.
Conversely, a site optimized for the least common denominator will significantly
reduce richness and interactivity - a critical requirement for e-tailing and
other e-commerce applications - for the sake of ensuring acceptable performance.
Workfire's software allows Internet application developers to design their site
for the highest common denominator of access speed without impairing performance
for low-speed users. Its Genetic Caching technology provides the appropriate
level of compression and transformation required to ensure a quality user
experience based on the user's access speed and inherent browser capabilities.
About Workfire
Workfire is a pioneer in Genetic Caching technology, which uses software to
accelerate Internet data delivery. The company is dedicated to creating advanced
technologies that dramatically improve Internet performance. Workfire is a
privately held company with its primary facilities in Kelowna, British Columbia,
Canada.
About Packeteer
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Packeteer (NASDAQ:PKTR - news) is a leading provider of Internet application
infrastructure systems designed to enable businesses and service providers to
ensure the quality of experience for networked applications and application
services. Packeteer's advanced PacketWise(TM) software, the foundation of the
company's innovative PacketShaper and AppVantage(TM) systems, integrates
application discovery, analysis, control and reporting technologies that are
required for enhanced application-performance and proactive bandwidth
management.
Packeteer's products are deployed today by leading Fortune 1000 companies and
service providers worldwide through an established network of more than 100
VARs, distributors and system integrators in more than 50 countries. In
addition, PacketWise software is licensed by major communications industry
partners who integrate the software into specific strategic networking
solutions. For more information, contact Packeteer at (408) 873-4400, fax (408)
873-4410; or visit the Packeteer Web site at www.packeteer.com.
Safe Harbor Act Clause
The statements contained in this press release that are not purely historical
are forward-looking statements within the meaning of Section 21E of the
Securities and Exchange Act of 1934, as amended, including statements regarding
Packeteer's expectations, beliefs, intentions, or strategies regarding the
future. Forward-looking statements include express or implied statements
regarding future revenues and product offerings. All forward-looking statements
included in this press release are based upon information available to Packeteer
as of the date hereof, and Packeteer assumes no obligation to update any such
forward-looking statements. Forward-looking statements involve risks and
uncertainties, which could cause actual results to differ materially from those
projected. See the risk factors described in the Company's form 10K filed with
the SEC on March 23, 2000 and its Form 10-Qs and other reports filed from time
to time with the Securities and Exchange Commission. Packeteer assumes no
obligation to update the forward-looking information contained in this press
release.
Note to Editors: Packeteer and PacketShaper are registered trademarks and Packet
Wise and AppVantage are trademarks of Packeteer, Inc. All other products and
services are the trademarks of their respective owners.
