The Leader in Unified Performance Management for Converged Networks

Our ValueMaximizing the performance and lowering the cost of your infrastructure through unparalleled network and application visibility and control, anytime, anywhere

NetScout Systems, Inc. TodayFounded in 1984Public since August 1999 (NASDAQ NTCT)Fiscal 2003 Revenue $71.7M,Solid cash reserves, no debt3000+ customers, including the F50080,000+ installations345+ employeesWorld-wide distribution and supportHeadquartered in Westford, MA

Financial Track Record* Proforma Earnings(In $ millions)

Our Customers

Network Management Market Segmentation

The Benefits of Performance ManagementContain CostsWe avoided a $30,000 per month upgrade for 10 months because NetScout helped us discover a mistake in a routing table. Ensure High Quality ServicesIf we didnt have the Real Time Monitor, we probably would have been down for four or five hours, as opposed to one hour. So, reducing a four-hour down time to a one-hour down time is worth $390,000 to us. Improve Operational EfficienciesI had received a complaint about the network being slow, but it was a couple of days after the fact. And so, I went back with the Traffic Monitor, looked at the link during that time, and found out that somebody had scheduled a backup of a server at that time. I was able to figure out what the problem was without having to wait for it to happen again. .

Current State of Performance Management

NetScouts Solution: Consolidate!Unified Performance ManagementCuts through the network management clutterOne solution for different disciplines and technologies Consistent set of data for meaningful business services metricsMaximizes network performance and reliabilityManage the network in conjunction with business goalsQuickly recover from service degradations and outagesProvides cost-effective network services deliveryImprove operational efficiencies/staff productivityContain infrastructure costsProtect investments

nGenius Solution Architecture Application Monitoring Network MonitoringFault Prevention Troubleshooting Capacity Planning SLM Application Monitoring Network Monitoring Capacity Planning Troubleshooting Fault Prevention Service Level Management Expert Analysis Usage-based Billing Network Surveillance VoIP Billing Modeling and Simulation

NetScouts Common Data Model Reduces data clutter and lowers TCOA simplified management architecture

NetScouts Common Data Model Reduces data clutter and lowers TCO Ensures consistency of informationMaintains context of information Single application displays informationScales to meet growth challengesCommon data format and breadth of coverage support future growthProvides investment protectionDecreases cost of deployment Leverages existing investmentExtends data source functionality

nGenius Performance Manager Reduces tool clutter and lowers TCOUnite network performance managementMultiple disciplines in a single productPreserve the context of information Extract business knowledge from network informationUnified perspective of applications and technologiesReports and views tailored to responsibilitiesManage network services cost effectivelyConsolidate management tools and expensesLeverage existing data source investments

nGenius Probes Provide visibility and control enterprise-wideDeliver rich business-level information Highest level information for virtually any application and who uses themAdapt to network and application complexitiesVia CDM Architecture to fully implement solutionResponsiveness metrics for applications and web to optimize delivery of business services network-wideOffer cost-effective monitoring enterprise-wideWidest breadth of coverage Flexible configuration choices for core, distribution, access, and storage areas of the network

A Practical Approach to Network Management

Summary: The nGenius SolutionUnifies performance management by consolidating tools and data sourcesPuts information into business context via rich, application-level visibilityLowers cost of ownership and operations by reducing the number of tools and leveraging existing infrastructure investments

Summary:1. NetScout is firmly dedicated to providing visibility and control to our customers so they can attain maximum network performance and become competitive. 2. Visibility is a means to control: you cannot control what you cannot see. 3. Visibility is only as comprehensive as the data source.Script: Businesses today are completely reliant upon their corporate networks. What this means is that maximum network performance is essential. NetScout offers a unified performance management solution that provides visibility and control over this critical business resource. Visibility, first and foremost, because you cannot control what you cannot see. So visibility starts with your data sources and how comprehensive the data are that come from them. And second, control, staying ahead of the traffic and trends with powerful information that helps you to proactively manage your network. NetScout is solely dedicated to producing performance management products to allow our customers to run their networks at high performance we are not distracted by any other products.

Perhaps a Qtr-to-Qtr Chart here for results and execution milestones?NetScout has a large installed base of customers. We serve a majority of the Fortune 500 and have customers from all major verticals:

Financial ServicesGovernment High Tech Manufacturing Medical Telecom Retail Education Energy Consulting Entertainment Serv. Provider

Case study:

Mohegan SunMohegan Sun operates 5 million square feet of casino, restaurants and entertainment complexes, including a new 1,200-guest room hotel and convention center that are scheduled to open in April of this year. Each of these venues places unique demand on the networkfrom the operation of the systems on the gaming floor, to sophisticated security systems, to bandwidth-intensive guest services. nGenius provides Mohegan the continuous visibility it needs to assure performance and efficiency across its infrastructureincluding views into the performance of all business, multimedia and gaming traffic, as well as the network and its systemsto assure successful operation of these venues, 24-hours a day. Mohegan Sun was able to save more than $1 million by leveraging nGenius to quickly resolve network performance problems that affected gaming systems on the casino floor. nGenius alerted the casinos IT staff and they were able to resolve the culprit issues within one hour, as opposed to the four to five hours it would have taken without NetScout.

CommerzbankBased in Frankfurt, Commerzbank has over 50 subsidiaries, 750 branches and approximately 37,000 employees worldwide. Commerzbank operates one of the largest trading floors in Europe, handling thousands of high-value transactions every day. This makes it absolutely essential that our network always operates at peak efficiency, said Zeljko Smetko, vice president of network support, IT Production of Commerzbank. We chose NetScouts nGenius to assure the reliability and business-critical performance of this gigabit-speed LAN. It helps us proactively identify network anomalies and resolve network problems faster than before. NetScout provides in-depth views into networked application performance, helping us better manage availability and application response-time while offering us the chance to manage service levels, end-to-end. Its capacity planning capabilities provide us the opportunity to save money, because we can more accurately anticipate future bandwidth requirements.

FideltiyFidelity Investments is the world's largest mutual fund company. With a vast data network infrastructure that supports over 30,000 employees and 70 business units worldwide, understanding how and where network bandwidth is being utilized is critical to maintaining the company's leadership position. Faced with surging costs, the management at Fidelity needed to find ways to respond to business demands that included getting control of user behavior

ChevronTexacoOne of our large repeat customers is ChevronTexaco. ChevronTexaco has recently upgraded to our new nGenius Performance Manager1.4 from CiscoWorks2000. ChevronTexaco is also a good example of the value to our customers of our strategic relationship with OpNet. Chevron usesnGenius Performance Manager to provide in-depth insight into network performance for OpNet IT Guru's sophisticated network modeling andpredictive "what if" scenarios. nGenius delivers Chevron superior visibility into their global network. The new integrated functionality inPerformance Manager 1.4 delivers both historical and real-time data in oneview.

Bell CanadaBell Canada is another example of a large repeat customer using our nGenius system for their internal network LAN and WAN monitoring as well as to deliver increased value to their network managed services customers. Bell Canada monitors outsourced networks for customer accounts using our nGenius System for in-depth service level reporting to assure they are meeting agreed-upon service levels with their customers. Bell Canada has also designed nGenius into several Network Management offerings which has added additional value to their managed solutions targeted at large organizations.

American Tower American Tower is a leading independent owner, operator and developer of wireless and broadcast communicationssites. The company manages the largest network of communications towers in North America and has morethan 14,400 sites in the United States, Mexico and Brazil, including approximately 300 broadcast tower sites.American Tower also offers network development services to wireless service providers and broadcasters and is a leadingsource of integrated satellite and .ber network access services linking U.S. Internet and voice carrier backbones tothe rest of the world. American Tower brought in the nGenius Performance Management System, installing nGenius probesat key, high-traff.c points across the network. Through the nGenius System, American Tower now has system-wide,real-time monitoring of its network activity with visibility into individual application .ows and end-user behavior,helping to ensure uptime and peak application performance

BIRN

The Biomedical Informatics Research NetworkBIRNis a nationwide high-performance computer initiative focused on diseases of the brain. The network infrastructure for BIRN uses the latest highlysophisticated technology. BIRN employs tomorrows Internet, the Internet2/Abilene high-bandwidth IP network, with the ultimate aim of utilizing a high-speed, large-scale, distributeddata and supercomputing infrastructure. Ensuring the integrity of so large and complex a system is a considerable undertaking. Essential to its smooth rollout and ongoing operation,NetScout has been involved from the inception of the project. Because BIRN is dependent on the performance of the network and its ability to meet the unique demands of the researchers,NetScouts nGenius Performance Management System was chosen to monitor end-through-end network performance. The bandwidth demands are signi.cant, with researcherssharing terabyte-size data such as digital magnetic resonance images and 3-D microscope images. Each BIRN site is equipped with a NetScout probe to enable the BIRN NetworkingOperations Center to monitor and tune performance between sites. BIRN staff can view network traf.c and performance, model and solve reported problems and adjust all aspects of the BIRN network from a single location. The nGenius System was chosen for its superior scalability !

Script:This table shows Gartners model of the network management market: Gartner basically breaks down the network management market into four segments: Element management, Operations management, Performance/Services management and Business management:

Element Management: This layer is dominated by tools from network device manufacturers such as Alcatels OmniVista, Cisco Systems CiscoWorks, Lucent Technologies Navis iEngineer and Nortel Networks Optivity. These tools are specific to managing an individual vendor's network components and often provide photo-realistic device views for ease-of-use. ( Low lelevl point solutions)

Operations Management: The tools for this layer understand the relationships and dependencies between multi-vendor network components. They support day-to-day network administration and provide features such as discovery of network topology, status monitoring, fault management, and sometimes basic real-time performance data. ( We play here in some ways) The market leader of this segment is (HP) but this market space is shared by many large and small vendors including Computer Associates (CA), IBM Tivoli, Ipswitch Whats Up Gold, Micromuse, RiverSoft and Smarts.

Performance/Service management This management layer focuses on the quality of performance/service and service guarantee issues linked with network management. This is NetScout area of specialty. We provide ability to see the applications running across the network and who was using them which is the first step in aligning network decisions with business needs. NetScouts Unified performance management solution combines troubleshooting, capacity planning and service level management all in one incorporated system.

Business Management: This layer addresses the alignment of the network and the rest of the IT infrastructure with the business processes they enable vendors such include HP, IBM Tivoli, Managed Objects, ( Some of our higher level reporting capability fall into this realm)

NetScout primarily resides in the Performance/Services management quadrant however we do also extend down and upward into the business management and operational management quadrants.

Script:. Networks are more complex than ever, which has led to an extreme amount of clutter in both the data and tools space. The result:

Too much data not enough informationDifferent devices produce different performance dataNo meaningful metrics for business servicesFragmented data model prevents end-through-end visibilityToo many tools not enough solutionsDifferent technologies (Voice, SANs) require distinct toolsDifferent functions (reporting, troubleshooting, SLM) require distinct toolsNo integration

The consequence:Total cost of ownership suffers due to an inability to contain infrastructure costs and personnel costs. In addition it becomes increasingly difficult to protect your infrastructure investment and ensure that network services are available and responsive for your users.

The challenge facing most IT organizations today is how to control the data sources and ensure that the right information and information structures are in place. Achieving this involves creating an integrated solution lies in integrating disparate data from disparate sources. The complete solution must be easy to deploy manage and support

Maximize network performance and reliability Probes:NetScouts probes the foundation of CDM collect application-based flow information and add full network visibility including errors, measure response time and provide the ability to perform detailed troubleshooting with trace capabilities.

Technology Integration partners:

The first phase of TIPs includes Cisco, Foundry, F5 and Extreme Networks as well as NetScout developed adapters for standard and generic flow-based data sources.

Business relevant views are provides through nGenius Performance Manage. nGenius Performance Manager provides the ability to collect application flow information from multiple data sources, including our own NetScout Probes, Ciscos Network Analysis Modules or any other RMON-enabled device.

NGenius Application Partners include Cisco as part of the CiscoWorks Ecosystem, HPOV as an OpenView Portfolio Partner, Opnet for advanced network modeling and Apogee Networks for Usage-Based Billing.

as it reduces the need for new tools or architectural changes each time a new data source is introduced

You need to eliminate the management tool clutter!A single performance management tool is needed to address todays multiple technologies and functions. Real-time and historical information is required within this single tool so that you can solve multiple problems/functions (troubleshooting, capacity planning, etc.), but a single database is necessary to preserve the context of information as you seamlessly move from one end of the product to the other.

Although performance management is one of the most critical tasks performed by IT professionals, other areas of interest include security, server management and element management. Thorough our unique CDM architecture, we are able to use data from data sources across the enterprise to facilitate information sharing in these other areas as well.NetScout probes provide visibility and control of traffic and application flows on the enterprise network, including collection of data flows from industry standard routers and switches, such as Sflow, Netflow and SPAN. MIB11 stats can also be obtained through the nGenius server.The nGenius solution helps IT staff to facilitate network management tasks and control rising cost by creating a common structure to provide quality information that can be applied anywhere.NetScouts CDM technology and nGenius Performance Manager solve the problem of data and tool clutter that is prevalent in todays networks. The consolidation of data sources and use of a single application provides a minimized TCO by reducing the costs of operating, maintaining, and growing the network performance management environment. IT departments can be more effective with a single solution that meets the needs of capacity planning through detailed troubleshooting in a single application. This significantly reduces training and support requirements. And, lastly, IT and the business can be better aligned. The ability to manage performance in terms that the business can understand services, and effectively communicate through nGenius Performance Managers integrated, web-based reporting.

Maximize network performance and reliability