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NetScout Announces Intent to Acquire Psytechnics

Leading Provider of Performance Management Software for IP Voice, Video and Telepresence will Further Extend the support of the nGenius Service Assurance Solution for Unified Communications Deployments.

Westford, MA. – March 28, 2011 – NetScout® Systems, Inc. today announced the signing of a definitive agreement to acquire privately held Psytechnics, Inc., a leading provider of performance management technology that enables organizations to proactively assure the user experience for unified communications services. Based in Ipswich, United Kingdom, and Portsmouth, New Hampshire, Psytechnics’ technology will further strengthen NetScout’s Unified Service Delivery Management strategy by providing more comprehensive management of the quality of IP Voice, Video and Telepresence service delivery along with all other application and data services.

"Addressing the quality and reliability of Voice, Video and Telepresence services continues to be a top concern for IT organizations. To proactively manage these services, the IT organization needs application-specific details as well as IP transmission characteristics for voice and video traffic to understand what impacts user service quality and address performance issues," said Anil Singhal, president and CEO of NetScout. "With the acquisition of Psytechnics, NetScout will gain critical technology and expertise that will help us continue to build on our foundation strategy of Packet-Flow intelligence and accelerate our innovation to address our customers’ growing Unified Communications footprint.”

With an installed base managing over one million IP Telephony users in the US and Europe, Psytechnics’ Experience Manager software delivers trusted and granular real-time visibility into user Quality of Experience (QoE) for collaborative Unified Communications services in a simplified and actionable manner. The technology supports a broad compliment of Unified Communications services, covering multiple technologies, supporting multiple vendors, and a wide range of communications media and access devices, enabling the IT organization to precisely assure user experience and manage voice, video and Telepresence service delivery end-to-end.

In addition to providing NetScout with advanced Unified Communications assurance technology and a large patent portfolio, the acquisition of Psytechnics will bring a team of industry-leading engineers to the company. Upon the close of the acquisition, the Psytechnics team will be integrated into NetScout’s ongoing operations. Psytechnics has been backed by leading institutional investors DFJ Esprit, Gimv and New Venture Partners. Financial terms of the transaction are undisclosed. The acquisition is subject to various standard closing conditions and is expected to be completed early in the first quarter of fiscal year 2012. The acquisition is expected to be slightly accretive for the full fiscal year 2012 on a non-GAAP basis. It is anticipated to be dilutive for the fiscal year 2012 on a GAAP basis subject to the finalization of the accounting for business combinations.
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About NetScout Systems, Inc.
NetScout Systems, Inc. (NASDAQ: NTCT) is the market leader in Unified Service Delivery Management enabling comprehensive end-to-end network and application assurance. For 26 years, NetScout has delivered breakthrough packet-flow technology that provides trusted and comprehensive real-time network and application performance intelligence enabling unified assurance of the network, applications and users. These solutions enable IT staff to predict, preempt and resolve network and service delivery problems while facilitating the optimization and capacity planning of the network infrastructure. NetScout nGenius® and Sniffer® solutions are deployed at more than 20,000 of the world’s largest enterprises, government agencies, and more than 130 service providers, on over 740,000 network segments to assure the network, applications, and service delivery to their users and customers.

Forward-Looking Statements
Forward-looking statements in this release are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and other federal securities laws. Investors are cautioned that statements in this press release, which are not strictly historical statements, such as the expected benefits to NetScout from completing the acquisition and the expectation that the acquisition will be slightly accretive for the full fiscal year 2012 on a non-GAAP basis and dilutive for the fiscal year 2012 on a GAAP basis subject to the finalization of the accounting for business combinations constitute forward-looking statements which involve risks and uncertainties. Actual results could differ materially from the forward-looking statements. Risks and uncertainties that could cause actual results to differ include, without limitation, risks and uncertainties associated with the retention of employees, the ability of NetScout to successfully integrate Psytechnics and achieve operational efficiencies, potential downturns in business and economic conditions and growth trends in the networking industry, uncertainties relating to customer markets and related geographic regions, continued uncertainty regarding global economic conditions and other risks set forth in NetScout’s Annual Report on Form 10-K for the fiscal year ended March 31, 2010 and its subsequent quarterly reports on Form 10-Q on file with the Securities and Exchange Commission. NetScout assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

NetScout, nGenius, InfiniStream and Sniffer are registered trademarks of NetScout Systems, Inc.

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