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Procera Networks Reports Significant Revenue Growth for Q4 and Fiscal Year 2008

New PacketLogic PL10000 Tier 1 products propel company to
near 400% growth for Q408 versus Q407, 73% growth over 2007

LOS GATOS, Calif. – March 17, 2009 – Procera® Networks Inc. (NYSE Alternext US: PKT), a developer of Evolved Deep Packet Inspection (DPI) solutions providing traffic awareness, control and protection for complex networks, announced its earnings for the fiscal quarter ending December 31, 2008 on a publicly available conference call held yesterday.

For the full year 2008, the company reported revenue (before special items) of $11.5 million versus $6.7 million for 2007, an increase of 73%, with gross margins of $5.8 million a 51% increase versus year-ago and operating expenses of $14.2 million versus $11 million an increase of 29% versus 2007.  More specifically, for the quarter ending December 31, 2008 revenues reached a record $4.5 million versus $900,000 for Q4 2007 an increase of 387% and an increase of 68% versus Q3 2008.  Operating expenses were $3.6 million for Q4 2008 remaining flat versus Q3 2008 and increasing only 3% versus Q4 2007.  The net loss for Q4 2008 was $1.1 million versus a loss of $3.2 million for Q4 2007 an improvement of 65%.  Gross margins increased significantly in Q4 2008 at $2.2 million versus $100,000 for Q4 2007.

 "It is clear that 2008 was a year of transition and I am proud of what we accomplished in terms of customer wins, product launches and operational efficiencies," stated Jim Brear, President and CEO. "The positive change, especially in the second half of 2008, provides us a fast on ramp to 2009 where I expect to take a leadership positions in mobile and higher education markets by adding new products, features, partnerships and programs that will set us apart form the competition," he added.

Company Highlights 2008:

  •  Added over 200 new customers.
  •  Closed 2 and began over 15 trials with Tier 1 Service Providers worldwide.
  •  Introduced the very successful PacketLogicTM PL10000 Series targeted at Tier 1 Service Providers.
  •  Expanded the product line with the introduction of the PSM, PL7720 and PL1400 statistic server.
  •  Closed $5.5 million in private placement.
  •  Significantly expanded SQA team and processes.


Company Highlights Q4 2008:

  •  Generated total bookings of $5.2 million.
  •  EMEA led in revenue contribution and APAC led with customer wins.  Americas showed a 90% revenue increase year-over-year.
  •  Channel partners contributed well over 70% of revenue worldwide.
  •  The transition to Tier-1 service providers continues to build momentum, with 78% of revenue in Q4 2008 generated by the PL10000 Series.
  •  The new PL7720 has been widely accepted with revenue contribution of over 20%.


An archive of the March 16 conference call will be available in the Investor Relations section of Procera's website, www.proceranetworks.com, beginning approximately Thursday, March 19, 2009.


About Procera Networks Inc.
Procera Networks Inc. delivers Evolved DPI solutions that give service providers awareness, control and protection of their applications and networks. Its core product suite, the PacketLogic line of platforms, leverages the company’s advanced identification engine, DRDL™ (Datastream Recognition Definition Language), to provide accurate identification of network traffic in real-time. PacketLogic is deployed at more than 600 broadband service providers, telcos, governments and higher education campuses worldwide.  Founded in 2002, Procera (NYSE Alternext US: PKT) is based in Silicon Valley and has offices around the globe. More information is available at www.proceranetworks.com.

Press Contact:
Diana Loredo, Procera Networks, 408-354-9386, diana.loredo@proceranetworks.com

Investor Relations Contact:
John Liviakis, Liviakis Financial Communications, Inc, 415-389-4670, john@liviakis.com