Blue Coat Announces Employee Inducement Awards

SUNNYVALE, Calif.--(BUSINESS WIRE)--Blue Coat Systems, Inc. (Nasdaq: BCSI), the technology leader in Application Delivery Networking, today reported that on August 19, 2010, it awarded stock options covering 59,000 shares, in total, and 55,440 restricted stock units, in total, to 60 newly hired employees of the Company and its affiliates. Each option has been classified as a non-qualified stock option, has an exercise price equal to the fair market value on the grant date, has a ten year term and vests over four years, with 25% vesting on the one year anniversary of the individual’s initial date of employment and an additional 2.0833% vesting each month thereafter until fully vested. Each restricted stock unit award vests over four years, with approximately 25% vesting on September 15, 2011, and the remainder vesting in quarterly installments over the following three years until fully vested.

Each of the equity awards was granted under the Blue Coat Systems, Inc. 2010 New Employee Stock Incentive Plan, and was provided as an inducement material to the respective employee entering into employment with the Company. In accordance with NASDAQ Listing Rule 5635(c)(4), these awards were made under a stock incentive plan that has not received stockholder approval. NASDAQ rules require a public announcement of equity awards made under this type of plan. The foregoing awards were approved by the Company’s Compensation Committee in accordance with the provisions of the Company’s Equity Award Policy and NASDAQ Listing Rule 5635(c)(4).

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.

Blue Coat 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.