Blue Coat Dedicates New Product Development Center in India

Blue Coat Systems, Inc. (Nasdaq:BCSI), the technology leader in Application Delivery Networking, today announced that it is in the final stages of establishing S7 Software Solutions Pvt. Ltd as its newest product development center. Blue Coat dedicated the new center today in Bangalore, India.

Blue Coat obtained majority interest in S7 Software, formerly an IT research and development firm, on January 25, 2010. Blue Coat had been in the process of acquiring the highly-regarded research and development firm since it announced entry into a stock purchase agreement with stockholders of S7 Software on November 5, 2009. Having now obtained a controlling interest in the firm, Blue Coat has moved forward with its plans to turn the Bangalore entity into one of four major product development centers around the world.

"With four fully integrated development centers, we can accelerate our pace of innovation and expand our Application Delivery Network solution portfolio to better deliver business value to our customers and increase the return on investment to our stockholders,” said Brian Ball, senior vice president and general manager, Blue Coat Systems. "Our new Bangalore development center builds on the expertise and established momentum of S7 Software to immediately advance our development work.”

The new Bangalore center will focus chiefly on management, reporting and client software products. Blue Coat plans to expand the center by hiring additional top engineering talent over the next several months. Blue Coat intends to acquire the remaining shares of S7 Software upon the receipt of regulatory approval from 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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