Blue Coat Raises $13 Million in Private Financing with Sprout Group

Friday September 19, 12:23 pm ET SUNNYVALE, Calif., Sept. 19 /PRNewswire-FirstCall/ — Blue Coat(TM) Systems, Inc. (Nasdaq: BCSI) today announced the completion of $13 million in equity financing with Sprout Group, a venture capital affiliate of Credit Suisse First Boston.

The financing consisted of 1,311,807 shares of Blue Coat’s common stock priced at $9.91 per share, and closed on September 18, 2003. The share price was determined using the average closing price per share of Blue Coat’s common stock on The Nasdaq National Market over the five (5) trading days ending on the trading day prior to the date of closing. The common stock issued in the transaction has not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

“Raising these additional funds increases our financial strength and stability,” said Brian NeSmith, president and CEO of Blue Coat. “We are pleased that Sprout Group shares our confidence in Blue Coat and our commitment to expanding our business.”

Sprout Group (www.sproutgroup.com) has been an institution in venture capital for more than thirty years and is one of the largest firms focused on funding emerging technology companies. Sprout Group has helped to establish such well-known names as Actel, AMD, Cephalon, Corporate Express, mySimon, Pyxis, Spotfire, Staples, StrataCom, and VeriFone.

About Blue Coat Systems

Blue Coat Systems provides secure proxy appliances that control user communications over the Web. Blue Coat ProxySG appliances integrate advanced proxy functionality with security services such as content filtering, instant messaging control and Web virus scanning — without impacting network performance. With more than 3,000 customers and over 14,000 appliances shipped worldwide, Blue Coat is trusted by many of the world’s most influential organizations to ensure a safe and productive Web environment. Blue Coat is headquartered in Sunnyvale, California, and can be reached at (408) 220-2200 or www.bluecoat.com.

FORWARD LOOKING STATEMENTS: The statements contained in this press release that are not purely historical are forward-looking statements, including statements regarding Blue Coat Systems’ expectations, beliefs, intentions or strategies regarding the future. All forward-looking statements included in this press release are based upon information available to Blue Coat Systems as of the date hereof, and Blue Coat Systems 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. These and other risks relating to Blue Coat Systems’ business are set forth in Blue Coat Systems’ most recently filed Form 10-Q for the quarter ended July 31, 2003, and other reports filed from time to time with the Securities and Exchange Commission.

Copyright (C) 2003, Blue Coat Systems, Inc. All trademarks, trade names or service marks used or mentioned herein belong to their respective owners.

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