Coverage Initiated: 8/9/2004

The OTC Digest was the first to profile Procera back in 2004. Below is our original Profile archived from 8/14/2004 when Procera was listed on the OTC Bulletin Board. Congratulations to Procera Networks Inc. for becoming an exchange listed stock. There continued growth has earned the company a listing on the American Stock Exchange. Although the stock has dropped in price significantly since the move to the Amex, along with the entire market, the company's key stats paint a far stronger picture than last year. The price drop has been unsettling however. It appears the company is restructuring their sales staff based on the most recent announcement in an 8-K dated 1-17-08.

Much of the information below from the original profile has changed and some may no longer be valid. As a result, the OTC Digest strongly urges you visit the company web site www.proceranetworks.com for current and accurate information. Also, please read all current filings with the SEC, all press releases under the new AMEX trading symbol PKT and call the company's IR firm of record listed below. Always discuss securities with your financial advisor. For a quick overview visit, finance.yahoo.com and all their SEC filings can be located at www.sec.gov.

Procera Networks, Inc. - (Amex: PKT)
'Optimizing and Empowering Network Security'

The OTC Digest has discovered one of the most dynamic emerging growth companies now listed on the American Stock Exchange, and headquartered in the heart of Silicon Valley. This company is delivering an entire new generation of intelligent network security solutions. We realize this profile is somewhat lengthy, but we assure you that the wealth of information included below is well worth your time invested and encourage all members to print and read this profile thoroughly.

A recent study by the FBI shows that more than 60% of security breaches originate from a company's own internal business network. Traditional security solutions cannot protect from a virus transferred to enterprise network brought by company laptops and PDAs thru wireless connection at a public place. Recent reports also indicate that employees spend up to an hour every day on non-business related Internet surfing resulting in major productivity loss for the enterprises. More so, the network bandwidth consumption by non-business activities can severely degrade the performance of business critical applications.

Procera Networks, Inc. (PKT) provides hardware and software solutions for internal security, employee productivity and network bandwidth management by enabling companies to optimize, control manage their network.

PKT has been designing and developing products since 2001. PKT is an innovative pioneering developer of the industry's first secure content management system with advanced optimization and control. PKT's network appliance platforms enable enterprises of every type to achieve increased productivity and security. Based on Pkt's unique IP-Return system architecture, it enables businesses and their trusted systems integrators to enhance IP-based networks with content control and protection from attacks as well as optimization and acceleration of application performance. With PKT's IP-Return system architecture organizations gain more productivity with better control, thereby increasing the performance of applications at the lowest possible cost of operations.

Procera Networks' solutions empower businesses to align their business policies with computing resources to ensure applications achieve needed performance and availability levels to meet or exceed Quality of Service and Service Level Agreement objectives at the lowest possible cost. "The internet, messaging and the availability of Web content have transformed the way employees conduct their everyday business activities," says Brian Burke, Research Manager at IDC's Security Management Group. "As a result, CIO's and IT management are increasingly looking for solutions to help enforce corporate policy, comply with privacy regulations, limit legal liability, increase employee productivity, and reduce network bandwidth consumption."

PKT's family of OptimIP solutions allows businesses to eliminate internal security breaches, significantly reduce exposure from Internet misuse and abuse, enable selective data archiving for corporate governance and regulatory compliance, and accelerate the performance of critical business applications. Companies that use PKT's intelligent network appliances realize immediate and measurable productivity gains. With PKT's wire-speed data filtering capability, companies can also achieve compliance with the archiving requirements of newly introduced legislation, like Sarbanes Oxley, HIPAA, etc., at a fraction of the cost of other server based solutions available in the market.

The Market

What is driving the Network Security Industry?

• IDC estimates that the worldwide Secure Content Management (SCM) market will grow to $6.2 billion by 2007.
• Network abuse and misuse is a growing problem. Industry estimates indicate that an average 100-person company loses over $750,000 per year on lost productivity due to employee misuse of the Internet. Improper network use also exposes companies to significant legal liability.
• IP-based networks are being deployed as converged topologies for data, streaming video and mission-critical business applications.
• Cost and management complexity of network solutions to control content, provide security and optimize performance are increasing.
• High-volume vertical processes will emerge as a $6 billion market according to Forrester Research, creating a growing need for secure data-flow management.
• Escalating Legal Compliance creates even larger demand.
• According to Ferris Research, corporate America lost $9 billion in 2003 due to reduced worker productivity, consumption of bandwidth, and use of technical support time in response to spam.

Key Investment Highlights Include:

• Strong senior management team and board of directors
• Key patent filings and intellectual property
• First mover's advantage in the fast-growing content security market
• Superior products with industry leading features and pricing
• Partnerships in place for distribution, marketing and product bundling

Patents:

Procera Networks has over 160 patent claims in 22 countries worldwide.

1. Network Lockdown
2. URL Lock
3. Wire Speed on every port
4. Spoof Proof
5. Class of Service (QOS)
6. Denial of Service Protection
7. Time Triggered Policies
8. Package Shaping

PKTis addressing the increased challenges facing network security and performance. Today, the majority of the costs associated with IT infrastructure come from day-to-day systems operations. The costs of bandwidth, network management, lost productivity, and network misuse and abuse far outweigh the initial costs of application and networking infrastructure. Businesses today know the need to control costs but have been compelled to over-provision their networks to ensure the performance, efficiency and availability of mission-critical applications. Also they have lacked visibility into how real-time network loads, misuse, and even outright abuse degrade application performance and result in significant lost productivity.

Management

Procera has an executive team with many years of experience in the Networking industry. This team has the industry knowledge, contacts and experience required to drive success in the company.

Doug Glader (Retired -See press releases) - President and CEO

Mr. Glader has over 30 years of business experience with Silicon Valley firms including Memorex, Measurex, Altus and Direct Incorporated. Mr. Glader was a co founder of Greyhawk Systems Inc. For the past eight years prior to founding Procera, he served in various senior executive positions at $120M Digi International, where he rose to the position of Chief Operating Officer reporting to the Chairman. Mr. Glader serves as a director on the boards of two other technology companies.

Anil Sahai, PhD - Executive Vice President and CTO

Dr. Sahai has considerable experience in the areas of advanced switching architecture, design and delivery of network servers and storage systems, microprocessors and managing complex software programs at Amdahl, Compaq, Intel and NetFrame Systems. Dr. Sahai was also founder and CEO of Ezyte Inc. Dr. Sahai has a PhD. in Computer and Information Science from Univ. of Calif., a Masters from Sloan Business School at MIT, a M.S. in Computer Science from Univ. of Pittsburg and a B.S. and M.S. in Mathematics.

Jay Zerfoss - Vice President of Finance

Mr. Zerfoss has more than 25 years of experience in all areas of financial and administrative management. He served as the CFO for Integrated Device Technology and Quality Semiconductor and has had considerable experience guiding a public company including an IPO. Mr. Zerfoss has a MBA degree from The Wharton School of Finance, a BS in Business Education and holds a CPA Certificate.

Mick Hansen, Vice President, Engineering

Mick has over 25 years of experience in software, optical, electrical and mechanical engineering management. Prior to joining Procera Networks, Inc., he was VP of Development at AmPro Corporation, where he led development of advanced projection systems including hardware, software and process technology and he was the Chief Technology Officer at Optical Specialties Inc., a developer of wafer inspection systems.

Greg Dewing, Vice President, Sales

Greg has more than 20 years of experience in OEM, end user and VAR partnerships. Prior to joining Procera, he was with Network Peripherals Inc. where he led the OEM sales efforts for North America, Europe and Asia Pacific. He was at Novell where he built the OEM business and developed their worldwide distribution channels. He also worked at Santa Clara Systems.

As always, the OTC Digest urges all members to perform their own due-diligence on all featured companies and speak with their own financial advisor about all securities. A good starting point is to visit Procera Networks, Inc. web site, look at a stock quote, research reports, key stats, charts etc..., and then read all the company's current filings with the SEC.

For immediate assistance please contact the company's investor relations firm of record, Liviakis Financial Communications Inc. by phone at (415) 389-4670 or visit www.proceranetworks.com and use their contact us page to reuest information.

Stay Tuned!