Blue Coat Supplies BT with Managed Security Service

Blue Coat Systems, Inc. (Nasdaq:BCSI), the leader in WAN Application Delivery and Secure Web Gateway, today announced that it will supply BT in providing its Managed Internet Accelerator and Threat Reduction security services as part of a managed service offering. BT will use Blue Coat^® ProxySG^® appliances as a key part of the managed service offering.

Ray Stanton, Global Head, Business Continuity, Security & Governance Practice, BT Global Services said, "BT has a long history of working with Blue Coat. Its track record in securing and accelerating Web traffic makes them an ideal platform for our managed services and has seen strong uptake by our corporate clients.”

To boost user productivity, reduce bandwidth and make the web experience more responsive for users, the BT Managed Internet Accelerator service uses Blue Coat ProxySG appliances to intelligently manage user requests and accelerate delivery of Web content. It does this by routing user requests to the cache for commonly requested content or fetching content on behalf of the users using object pipelining.

For security protection and enforcing policy around Web usage, the BT Threat Reduction service – also based on ProxySG appliances – monitors Web surfing activity and can block or alert as necessary based on pre-defined policies. For example, organizations will use this service for blocking access from the corporate network to pornography or gambling sites during business hours. In addition to helping organizations achieve compliance or prevent potential litigation, the service also monitors for viruses and other malicious code threats thereby further reducing IT risk.

BT also uses Blue Coat appliances on its corporate network to secure and accelerate web traffic across its global WAN, serving 106,000 employees.

"BT now provides its customers with the ability to protect, manage and accelerate Internet applications and content,” said Craig Hicks-Frazer, vice president, Service Providers, Blue Coat Systems. "By incorporating Blue Coat ProxySG appliances in its managed service offerings, BT can offer companies flexible and granular Internet control while accelerating important or acceptable content, rather than face the typical penalty of impaired performance. We are pleased to play an important part in the BT Managed Internet Accelerator and Threat Reduction services.”

About BT

BT is one of the world’s leading providers of communications solutions and services operating in 170 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to our customers for use at home, at work and on the move; broadband and internet products and services and converged fixed/mobile products and services. BT consists principally of four lines of business: BT Global Services, Openreach, BT Retail and BT Wholesale.

In the year ended 31 March 2008, BT Group plc’s revenue was £20,704 million with profit before taxation and specific items of £2,506 million.

British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.

For more information, visit www.bt.com/aboutbt

About Blue Coat Systems

Blue Coat secures Web communications and accelerates business applications across the distributed enterprise. Blue Coat’s family of appliances and client-based solutions – deployed in branch offices, Internet gateways, end points, and data centers – provide intelligent points of policy-based control enabling IT organizations to optimize security and accelerate performance between users and applications. Blue Coat has installed more than 40,000 appliances worldwide. Blue Coat is headquartered in Sunnyvale, California, and can be reached at (408) 220-2200 or 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 Blue Coat Systems’ Form 10-Q for the quarter ended July 31, 2008 and Form 10-K for the year ended April 30, 2008, filed with the Securities and Exchange Commission.

Blue Coat, ProxySG 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.