Procera Networks Investor Presentation

August 2011

Disclaimer Certain statements in this presentation relate to future events and expectations and as such constitute forward-looking statements involving known and unknown factors that may cause actual results of Procera Networks, Inc. (“we,” “our,” “Procera” or the “Company”) to be different from those expressed or implied in the forward-looking statements. In this context, words such as “will,” “would,” “expect,” “anticipate,” “should,” “projected” or other similar words and phrases often identify forward-looking statements made on behalf of Procera. It is important to note that our actual results may differ materially from those described or implied in such forward-looking statements based on a number of factors and uncertainties, including, but not limited to, (i) adverse changes in general economic conditions; (ii) adverse changes in the industries Procera serves including without limitation communications equipment and networking, telecommunications services, enterprise networking and systems integrators; (iii) our ability to manage material, including components used in our solution, and freight costs; (iv) our ability to generate cash from operations, secure external funding for operations and manage liquidity needs; (v) material adverse changes in customers’ access to liquidity and capital; (vi) currency exchange or interest rates changes; (vii) market acceptance of our products; (viii) significant changes in the competitive environment; (ix) changes in law, regulations and tax rates; and (x) other general economic, business and financing conditions and factors described in more detail in “Item 1A – Risk Factors” in Part I of our Annual Report on Form 10-K filed with the SEC on March 16, 2011 and statements made in subsequent filings. These filings are available on our website at www.proceranetworks.com. We do not undertake to update our forward-looking statements.

Leading provider of Intelligent Policy Enforcement Founded in 2002 HQ in Fremont CA; Int’l. offices in Sweden, Australia and Singapore ~75 employees worldwide; 40% of headcount in R&D

Software-based solution focused on Next-Gen networks Highly differentiated, proprietary DRDL technology Strong Intelligent Policy Enforcement R&D and IP Focused on mobile and broadband operators 40+ large global service provider customers

Enabling explosive growth in mobile data and video

Strong Tier-1 customer, partnership, product and financial momentum

TAM growing at 43% 5-year CAGR to $2.1 B

Procera at a Glance

3

Recent Business Momentum Tier-1 Customer Wins: 2010 – 2011 New Product Releases

Mobile Cable Fixed / Mobile

Strong Partnership Momentum Financial Momentum

IPv6 – PacketLogic Real-Time Enforcement compatible with 3GPP, DOCIS 3.0, TISPAN

PL8820 – 30 Gbps in 2RU chassis

Next Gen PL10000 – 120 Gbps, 10 mm subs per chasis

PacketLogic 12.4 – enhanced visibility into network congestion

Smart Campus – turnkey network management solution for Higher Education

Very strong revenue growth in 1H:11 – 105% growth YoY

Record Q2 bookings up 45% YoY; strong pipeline

Gross margin increased 5% YoY to 62% in Q2:11

Added 20 new service provider cust. in Q2:11; Increasing repeat orders from existing customers

Increased revenue guidance to $35 million for 2011 – 75% growth YoY

Integrated policy management solution

Integrated policy management solution for LTE

Integrated charging solution

Performance management and optimization

Technology license and re-sale agreement

Integrated policy management solution

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Malaysian Mobile Operator

E. European Cable Company

U.S. Cable Company

Canadian Cable Company

Scandinavian Incumbent

E. European Incumbent

Australian Incumbent

New APAC Mobile

Operator

Investment Highlights

Leading Provider in the Large, High-Growth IPE Market

Leveraged to the Growth in Mobile and IP Data Consumption

Software-based Solution Leveraging Industry-Standard Hardware

Global Tier-1 Customer Footprint Across Mobile and Broadband

Accelerating Revenue Growth and Expanding Margins

Outstanding R&D Capabilities; Proven Leadership Team

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Catalysts for Continued Growth

$344 $518

$781

$1,138

$1,566

$2,055

$0

$500

$1,000

$1,500

$2,000

$2,500 ($ in millions)

2010 2011E 2012E 2013E 2014E 0

10,00020,00030,00040,00050,00060,00070,000

Internet Data Managed IP Mobile Data

(PB per Month)

64,181

38,246 28,498

20,405

2010E 2011E 2012E 2013E 2014E

Source: Cisco Visual Networking Index 2010. Source: Infonetics 2011.

Growing Data Consumption Drives TAM

Mobile Device Growth and Smartphone Penetration

Explosive Demand for Online Content

Innovative Service Creation by Network Operators

49,985

Standalone DPI Product Market Global IP Traffic

6

2015E

The Internet Will Be Televised In Real-Time

7

Smart Device Proliferation Changing Behavior

8

Intelligent Policy Enforcement is Required Enables Rapid Deployment of Services Subscribers Intelligent Policy Enforcement Applications

9

Why Are Operators Buying IPE?

Network Intelligence Network Optimization Security / Protection Tiered Services

Subscriber, service tier, location, device and traffic awareness intuitively combined to assess trends and user behavior. Improve quality and postpone CAPEX investments by optimizing the use of network resources to function with today’s plethora of applications. Intelligence enables early detection and mitigation of anomalies that indicate security issues. Manage subscriber offerings and service packages based on user behavior analysis and customer requests.

Solution Solution Benefit

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Our IPE solutions allow operators to charge according to consumption

Innovative Pricing is the “New Normal”

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Unlimited Plan Tiered Pricing Personalized Services

Flat-Rate Plans Service Policy Rate / Mo

Standard Unlimited $29.99

Capped 1 GB $14.99

Tiered Service Plans Service Policy Rate / Mo

Basic 1 GB $14.99

Advanced 2 GB $19.99

Premium 5 GB $24.99

Overage 200 MB $2.00

My Personalized Plan Service Policy Rate / Mo

My Cap 5 GB $24.99

Overage 1 GB $10.00

Optimized $1.50

Priority $1.50

3GPP Wireless Enforcement Ecosystem

Hosted Content

Partner Content

Internet Content

Intelligent Policy Enforcement

Charging (OCS, OFCS)

Customer Portal

(Events)

Policy Management

(PCRF)

Enforcement (PCEF) Layer

Management Layer

GGSN PDSN

SAE-GW

Internet Router

Call Center

AAA (SPR)

Full Network Visibility Forecast Traffic and Usage Trends

React to Threats & Create Innovative Services

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PSM PIC PRE PacketLogic

Subscriber Manager PacketLogic

Realtime Enforcement PacketLogic

Intelligence Center

Tight integration with BSS / OSS to deliver network, subscriber, service, and location awareness

Policy Management framework for standards compliance

Real-time and historical visibility into applications, locations, devices, and subscribers

Automated report generation and feeds for customer portals

Real-Time Policy Enforcement point to enforce business logic

Network Intelligence collection for PIC on thousands of user, location / device / application parameters

The Procera Solution Families Delivering Intelligent Policy Enforcement

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Proprietary Technology Architecture

Core

Edge

Access Bandwidth

1RU PL5600 1 – 3xGE Channels

4 – 100 Mbps, 80k flows

2RU PL7720 1 – 2xGE Channels 2 Gbps, 2M flows

2RU PL8000 Series 4X10GE/ 1 – 16xGE

Channels Up to 30 Gbps / 20M flows

12RU PL10014 6 – 10x10GE Channels 120 Gbps, 120M flows

…All made possible by our outstanding Varberg, Sweden-based R&D team

DRDL Software Technology Framework

PL 1420

PL 1200

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PacketLogic Subscriber Manager

PacketLogic Realtime Enforcement

PacketLogic Intelligence Center

Higher Education

Cable MSOs

Procera Target Market

Direct Sales – 75%(1)

Mobile / Wireless

Go-to-Market Strategy

15

Indirect Sales – 25%(1)

OEMs Partners VARs Global SIs North America: 12

EMEA: 10 APAC: 16

Planned

(1) Estimated percentage of revenues attributable to direct and indirect sales.

Competitive Landscape

IPE Features

Perfo

rman

ce &

Sca

labilit

y

Performance and scalability leadership

Extensible software framework for innovate service creation for carriers

Leading visibility, accuracy and control functionality

Real-time analytics and visualization

Outstanding R&D capabilities

Procera Differentiators

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Why We Win

Service Flexibility

Granular Accuracy

Performance & Scalability

Real-Time Analytics

Subscriber model is configurable Mass personalization of subscriber services Application / Usage / Tiered service options

Subscriber, location & device awareness Deep application awareness Virtual services for policies

Highest performance in the industry Millions of subscribers 10,000s transactions per second

Real-time network and location visibility Detailed business intelligence and reports Deep application visibility

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Growth Strategy

Increase our Tier-1 SP customer count

Continue to harvest our current customer opportunity

Pursue new technology partnerships to drive additional revenue

Extend our technology advantage

Leverage scale to drive margin improvement

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James Brear President & CEO

Charles Constanti VP & CFO

Alexander Haväng CTO

Jon Lindén VP, Global Marketing

David Ahee VP, Sales – Americas

Michael Marken VP, Global Operations

Paul Gracie VP, Sales – EMEA

Ben Tah VP, Sales – APAC

Experienced Leadership

Swedish Military

IDA Systems

TheSchoolbook.com Swedish Trade Council

Name Position Prior Experience

19

Name Title Prior Experience

Financials

Solid Q2:11 Results

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Revenue of $9.7 million, up 102% from Q2:10

Bookings of $9.7 million, up 45% from Q2:10

Added 20 new service provider customers

Won a record 57 new higher education product orders

15 direct Tier-1 trials ongoing or planned over the next 90 days

Gross margin improved to 62%, up from 61% in Q1:11 and 57% in Q2:10

Non-GAAP net income of $595,000, compared to a loss of $486,000 in Q2:10

Cash flow from operations was over $2 million

Completed successful public offering of common stock for net $26.5 million

Cash was $36.8 million at June 30, 2011

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Attractive Long-Term Financial Model(1)

Gross Margin  46%  57%  62%  65% – 70% 

Research & Development  13%  16%  13%  12% 

Sales & Marketing  28%  32%  33%  30% 

General & Administrative  18%  15%  14%  6% 

Total Operating Expenses  59%  64%  59%  48% 

Operating Income  (13%)  (7%)  3%  17% – 22% 

Q2:11 6/30/11  Long‐Term 2010 2009 

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(1) Excluding stock-based compensation.

Investment Highlights

Leading Provider in the Large, High-Growth IPE Market

Leveraged to the Growth in Mobile and IP Data Consumption

Software-based Solution Leveraging Industry-Standard Hardware

Global Tier-1 Customer Footprint Across Mobile and Broadband

Accelerating Revenue Growth and Expanding Margins

Outstanding R&D Capabilities; Proven Leadership Team

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Procera Networks August 2011

Thank You