Blue Coat Obtains Majority Interest in S7 Software Solutions

First Closing of Acquisition Will Enable Company to Transition Entity Into New Product Development Center in India

SUNNYVALE, Calif.--(BUSINESS WIRE)--Blue Coat Systems, Inc. (Nasdaq:BCSI), the technology leader in Application Delivery Networking, today announced that it has obtained majority interest in S7 Software Solutions Pvt. Ltd., an IT research and development firm based in Bangalore, India. Blue Coat announced its entry into a stock purchase agreement with stockholders of S7 Software on November 5, 2009. Having now obtained a majority interest in S7 Software, Blue Coat can move forward with its plans to turn the Bangalore entity into one of four major product development centers around the world.

“Moving forward with our plans to establish our new development center in Bangalore will facilitate the expansion of our Application Delivery Network solution portfolio while balancing investment for innovation with higher profitability.”

“We are pleased to achieve control of S7 Software Solutions,” said Brian NeSmith, president and chief executive officer, Blue Coat Systems. “Moving forward with our plans to establish our new development center in Bangalore will facilitate the expansion of our Application Delivery Network solution portfolio while balancing investment for innovation with higher profitability.”

Blue Coat intends to acquire the remainder of the shares of S7 Software Solutions upon the receipt of regulatory approval by the Indian government.

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.”

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