Alcatel-Lucent and Blue Coat Form Global Reseller Agreement and Collaborate to Help Service Providers Deliver Better Video Experience for Customers

Blue Coat Systems, Inc. (Nasdaq:BCSI) and Alcatel-Lucent (PARIS:ALU) (NYSE:ALU), today announced a multi-year, global strategic reseller agreement to bring industry-leading web caching and content delivery solutions to service providers worldwide. Under the terms of the agreement, Alcatel-Lucent will sell Blue Coat products, including Blue Coat^® ProxySG^® and CacheFlow^® appliances, to Alcatel-Lucent customers worldwide – including tier-one telcos, managed service providers, regional ISPs and mobile operators. The products are available immediately.

Alcatel-Lucent will specifically leverage the CacheFlow appliance as a complement to Alcatel-Lucent’s Velocix Content Delivery Network solution. The Velocix Digital Media Delivery Platform manages the distribution of digital content and is based on open Internet based video standards. The CacheFlow appliance reduces the strain of bandwidth-consuming dynamic Web 2.0 and video content by transparently caching such "over-the-top” content, providing bandwidth savings for carriers and a better experience for users. The CacheFlow appliance also helps service providers manage traffic "spikes” due to unusually high demand for content on breaking news or special events.

Working together, Alcatel-Lucent and Blue Coat will exploit innovative content delivery technologies, including a new generation of Web and video caching, to enable service providers to enhance their customers’ video and web experience while offering reduced overall costs associated with bandwidth delivery and backhaul. Multimedia caching technology allows operators to store some content locally closer to the user to improve delivery performance across the network and user experience. In addition, Blue Coat ProxySG and PacketShaper^® appliances can provide service providers with a range of security, application acceleration and visibility capabilities to further improve the user experience, add value in content and application delivery and provide protection from malicious threats and phishing.

"With this relationship we see significant opportunity to help service providers capitalize on growing consumer demand for access to high-speed video over the Internet by leveraging their existing infrastructure investments,” said Paul Larbey, vice president of Alcatel-Lucent’s Velocix Content Delivery Network solutions. "The Blue Coat platform is proven in some of the largest service provider and enterprise environments in the world, and it complements our existing products and services, giving service providers another tool to improve and simplify video delivery.”

The Alcatel-Lucent Services team will play an integral role in assisting customers to take full advantage of intelligent application delivery using Blue Coat solutions. Expanded services include deployment and configuration support, capacity planning, custom security and compliance policy definition and implementation, as well as other consulting and technical integration services.

With more than 100,000 appliances deployed globally, Blue Coat delivers proven, service provider-class solutions – with the ProxySG and CacheFlow appliances – for accelerating, optimizing and securing Web content and applications and reducing costs.

"With Alcatel-Lucent’s market-leading position in networking infrastructure solutions and its well-earned reputation among service providers, Blue Coat sees tremendous opportunity with this strategic relationship to expand its already established global footprint with service providers,” said Mike Borman, president and chief executive officer, Blue Coat Systems. "Alcatel-Lucent’s selection of Blue Coat also highlights the strong synergies between the two companies around application delivery and next-generation service enablement.”

Alcatel-Lucent brings together the unique experience as a CDN platform provider and a prior provider of CDN services, along with the focus on bringing technologies that provide intelligent delivery for large Multi-gigabyte media assets. The Velocix Digital Media Delivery platform is enabling operators today to dramatically improve their subscribers’ experience and become part of the digital media value chain. It’s also a key element of Alcatel-Lucent’s High Leverage Network™ (HLN) architecture which addresses the dual challenge of simultaneously scaling and managing network capacity to meet increasing bandwidth demand while delivering differentiated, revenue generating services.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) is the trusted transformation partner of service providers, enterprises, strategic industries such as defence, energy, healthcare, transportation, and governments worldwide, providing solutions to deliver voice, data and video communication services to end-users. A leader in fixed, mobile and converged broadband networking, IP and optics technologies, applications and services, Alcatel-Lucent leverages the unrivalled technical and scientific expertise of Bell Labs, one of the largest innovation powerhouses in the communications industry. With operations in more than 130 countries and the most experienced global services organization in the industry, Alcatel-Lucent is a local partner with a global reach. Alcatel-Lucent achieved revenues of Euro 15.2 billion in 2009 and is incorporated in France, with executive offices located in Paris. For more information, visit Alcatel-Lucent on the Internet: http://www.alcatel-lucent.com, read the latest posts on the Alcatel-Lucent blog http://www.alcatel-lucent.com/blog and follow us on Twitter: http://twitter.com/Alcatel_Lucent.

About Blue Coat Systems

Blue Coat Systems is the technology leader in Application Delivery Networking. Blue Coat offers an Application Delivery Network Infrastructure that provides the visibility, acceleration and security required to optimize and secure the flow of information to any user, on any network, anywhere. This application intelligence enables enterprises to tightly align network investments with business requirements, speed decision making and secure business applications for long-term competitive advantage. For additional information, please visit 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, and including statements regarding the capabilities and expected performance of Blue Coat Systems’ products. 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 the Securities and Exchange Commission reports filed by Blue Coat Systems, including but not limited to the risks described in the most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors.”

Blue Coat, ProxySG, PacketShaper, CacheFlow and the Blue Coat logo are registered trademarks or trademarks of Blue Coat Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.