Palm Beach County School District Deploys Blue Coat Appliances for WAN Optimization and Web Security to 160 Sites - One of Largest in the Industry

11th Largest U.S. School District Uses ProxySG Appliances to Accelerate Centralized Files and Educational Content and Applications While Adding Security and Controls

SUNNYVALE, Calif., Aug. 14 -- Blue Coat Systems, Inc. (NASDAQ:BCSI) , the leader in WAN Application Delivery and Secure Web Gateway, today announced that the School District of Palm Beach County has selected and deployed Blue Coat(R) ProxySG(R) appliances to accelerate files, educational content and applications across its Wide Area Network (WAN) between its school district headquarters and all of its educational facilities. The 160 site deployment marks one of the largest deployments of WAN optimization for any vendor of WAN optimization equipment to date. The Blue Coat appliances also provide protection from Internet malware and content and application controls to meet local, state and Federal standards and requirements.

With more than 166,000 students and nearly 40,000 connected computers, the School District of Palm Beach County has earned a reputation for utilizing the Internet as a powerful tool for learning and communications. The district is the fifth largest in Florida and the eleventh largest in the nation. Students use Web-based applications for in-class learning, distance learning from home, and online practice for the annual state standardized tests. The county's 21,700 teachers and administrative staff also rely on the Web for research and communications.

160 Sites - a Milestone for WAN Optimization

While the 160 site deployment is a milestone for the WAN optimization market, Blue Coat has security, control and video management customers with deployments exceeding 400 sites. The Blue Coat Director product provides centralized, automated policy configuration and device management for global deployments of hundreds of ProxySG appliances.

NH&A, LLC, a leading security and application acceleration solution provider, played an instrumental role in the selection and implementation of the deployment for the School District of Palm Beach County. NH&A has offices in Juno Beach, Florida as well as New York, NY and China.

Blue Coat ProxySG appliances utilize the company's MACH5 patent-pending framework of acceleration technologies designed to accelerate all key enterprise applications, including: Web and secure Web applications (SSL), file services, email/Microsoft Exchange and live streaming or on-demand video. Since the MACH5 technology is integrated with Blue Coat ProxySG appliances, it enables organizations to manage all of their user/application interactions -- to stop undesirable applications, regulate less important applications and accelerate critical applications, even when encrypted using SSL.

"As WAN optimization becomes a necessity for application delivery, it is critical to ensure solutions can scale to accommodate hundreds of sites," said Bethany Mayer, senior vice president of Worldwide Marketing, Blue Coat Systems, Inc. "Blue Coat has a proven track record of enabling the largest enterprises and governmental organizations to securely accelerate delivery of applications to hundreds of sites. We are pleased to work with such a large and distinguished school district and provide a solution for their complex and growing needs."

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-K for the year ended April 30, 2007, and other reports filed from time to time with the Securities and Exchange Commission.

Blue Coat and other applicable product names are trademarks or registered trademarks of Blue Coat Systems, Inc. in the United States and other countries. All other trademarks, trade names or service marks used or mentioned herein belong to their respective owners.

  Media Contacts:                    Investor Contact:

  Steve Schick                       Carla Chun
  Blue Coat Systems                  Blue Coat Systems
  steve.schick at bluecoat.com          carla.chun at bluecoat.com
  408-220-2076                       408-220-2318

  Anne Smith
  Loughlin/Michaels Group for Blue Coat Systems
  anne at lmgpr.com
  408-313-8089