September 05, 2007

TRAPEZE NETWORKS REPORTS OUTSTANDING GROWTH AND INCREASING MOMENTUM IN WIRELESS LAN MARKET

Trapeze-Branded Business More Than Doubled in First Half of 2007, with Growth in All Geographic and Vertical Markets

PLEASANTON, Calif., September 5, 2007 – Trapeze Networks®, the award-winning provider of Smart Mobile™ wireless solutions, today announced that its business dramatically accelerated in the first half of 2007, with significant growth occurring in all geographic regions in which it operates, including North America, Europe, the Middle East, and Asia. Sales of Trapeze-branded products increased by more than 100 percent over the same period in 2006, as the company substantially expanded its distribution channels, sales force, and global footprint. The company experienced significant traction in key vertical markets—including government, retail, healthcare, and higher education—and continued to lead the industry in WLAN technology with the recent announcement of Smart Mobile Phase Two.

“We have experienced a dramatic surge in Trapeze-branded bookings, resulting in higher profit contribution and increased predictability in our business,” said Jim Vogt, president and chief executive officer, Trapeze Networks. “Trapeze-branded bookings now represent a growing majority of our total business, as we continue to drive sustained growth and increased awareness of the Trapeze Smart Mobile brand on a global scale.”

Increasing Momentum in All Regions and Key Vertical Markets
During the first half of 2007, the company experienced significant customer wins in all regions. In North America, notable wins included the U.S. military, several agencies of the U.S. federal government, and The Citadel (Military College of South Carolina). Trapeze was also selected as the WLAN provider for the recent Democratic Presidential debate sponsored by Google’s YouTube and CNN, providing wireless service for more than 200 journalists and campaign support personnel. In Europe, Trapeze completed significant transactions with Fortis Bank (Belgium), BBVA (one of Spain’s leading financial services group), University of Brighton (U.K.), Erasmus Hospital (Netherlands), and Moet Hennessy Germany. In the Middle East, notable wins included luxury hotels Burj Al Arab (the world’s only seven-star hotel) and Jumeirah Beach Hotel, and Union Cooperative Society (one of the largest hypermarket retail chains in the Mideast).

Significant Repeat Business – 22 Percent of Sales from Existing Customers
In addition to growing its customer base globally, Trapeze reported significant repeat business, with 22 percent of sales coming from existing customers as they expand and enhance their deployments of Trapeze Smart Mobile wireless solutions. In North America, the company continued to receive follow-on orders from customers including Wheaton Franciscan Healthcare and University of Utah. Wheaton Franciscan Healthcare, one of the largest healthcare providers in the midwestern United States with 16,000 employees, is rolling out Trapeze Smart Mobile wireless across its entire network of approximately 100 facilities to support key applications such as mobile clinical charting and voice over Wi-Fi (VoWi-Fi). In Europe, significant additional orders were received from Walcheren Hospital (Netherlands), FastWEB (Italy), and Royal Hospitals (Northern Ireland).

Continued Strength in OEM Business
While focusing on Trapeze-branded business to drive an increasing majority of its overall revenue, Trapeze continues to selectively invest in its partner-branded system and technology licensing business as a strategic component in maximizing market access. The company revealed it has been working closely with a large strategic partner in Asia for more than a year to develop next-generation WLAN technology. The partner, an industry leader with extensive domain expertise in voice and handset technology, collaborated with Trapeze to optimize Smart Mobile for VoWi-Fi and fixed mobile convergence (FMC) applications. A formal announcement of the relationship will be made soon, which is expected to significantly expand Trapeze’s access to the growing Asia Pacific Wi-Fi market, including Japan.

“In combination with our strong and growing Trapeze-branded business, we are investing in and expanding our OEM and technology licensing partnerships where it makes sense, in order to maximize our access to markets globally,” said Ahmet Tuncay, vice president of product management and business development, Trapeze Networks. “As we accelerate our Trapeze-branded business, our OEM relationships continue to provide a strategic distribution channel.”

Major Expansion in Distribution Channels and Global Footprint
In order to meet accelerating demand for Trapeze-branded Smart Mobile solutions, the company has substantially ramped up its global distribution capacity, through significantly expanded channels and global footprint. Trapeze increased the number of North American channel partners by more than 50 percent, substantially extending the company’s market reach and coverage through the addition of major distribution partner Alternative Technology earlier this year, as well as existing distributors Westcon, Tel-e Technologies, and Inter-Tel.

In addition, Trapeze increased its direct global sales force by more than 40 percent in the first half of 2007. The company added new offices in Europe’s Nordic region and Asia, including China, Hong Kong, Japan, and Singapore. The company also opened a new office in Dubai (United Arab Emirates), where it has secured a growing list of customers.

Trapeze Wins Frost & Sullivan Award for Technology Innovation and Leadership
Following the announcement of Smart Mobile Phase Two in June, Trapeze received the 2007 Frost & Sullivan Award for Industry Innovation & Advancement of the Year for the European market. Frost & Sullivan recognized Smart Mobile Phase Two as adding “a critical new dimension to today’s WLAN deployments that is genuinely new to the market: the non-stop WLAN.” Smart Mobile Phase Two delivers this capability—the WLAN industry’s first and only enterprise-class availability and resiliency—through key innovations such as “cluster switching” and “cluster configuration.” These innovations enable all switches in the network to act collectively as a single virtual switch, providing many-to-many redundancy, hitless failover, and zero-downtime in-service upgrades. The net result is an “always-on” wireless network.

The award citation also noted that Trapeze continues to maintain an aggressive technology leadership position, with the most advanced, enterprise-class WLAN in the industry. The announcement of Smart Mobile Phase Two “again puts Trapeze on the offensive, setting the industry agenda and forcing its competitors to respond.”

About Trapeze Networks
Trapeze Networks delivers Smart Mobile™ — a ground-breaking approach to wireless networking, enabling organizations to deploy massively scalable mobile applications that leverage their existing infrastructure. Smart Mobile achieves this breakthrough by introducing intelligent switching, the first and only WLAN architecture that optimizes network traffic based on the underlying application. With Smart Mobile intelligent switching, organizations can support the most demanding next generation wireless applications such as toll-quality voice over WLAN for thousands of users, seamless indoor/outdoor mobility, and high-speed networks based on 802.11n — all without requiring expensive forklift upgrades. Trapeze Networks is well-capitalized, with strategic investments from networking industry leaders including Juniper Networks, Motorola, and Nortel Networks. Founded in March 2002, Trapeze is headquartered in Pleasanton, California, with operations in Europe, Japan, and Asia-Pacific. For more information, please visit www.trapezenetworks.com.

Need more information about Trapeze Smart Mobile™ wireless solutions? Call us today and talk to a Trapeze representative: 877.359.8779