Procera NetworksThe Intelligent Policy Enforcement Company

James Brear, President & CEO(NYSE AMEX: PKT)

January 2011

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This presentation contains forward-looking statements, including statements relating to the expected demand for Procera Networks' products and services. These forward-looking statements involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements, including risks related to the testing, acceptance and adoption of our products; the acceptance and adoption of our products; our ability to service and upgrade our products; lengthy sales cycles and lab and field trial delays by service providers; our dependence on a limited product line; our dependence on key employees; our ability to compete in our industry with companies that are significantly larger and have greater resources; our ability to protect our intellectual property rights in a global market; our ability to manufacture product quickly enough to meet potential demand; and other risks and uncertainties described more fully in our documents filed with or furnished to the Securities and Exchange Commission. More information about these and other risks that may impact Procera Networks’ business are set forth in our Forms 10-Qs filed in 2010 and our Form 10-K filed for the year ended December 31, 2009. All forward-looking statements in this presentation are based on information available to us as of the date hereof, and we assume no obligation to update these forward-looking statements.

Forward Looking Statements

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Procera at a Glance

• Founded: 2002 (NYSE AMEX:PKT)• Headquarters: San Jose, CA• Employees: 70• Market cap: $80M• Customer base: 600+ carriers and enterprises

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Market predicted to reach over $1 billion by 2013Strong financial momentum

– Ten consecutive quarters of y-o-y revenue growth– Four years of consecutive revenue growth– Ranked #1 fastest growing Networking company in 2010 (Deliottle Fast 500)

– $9M in bookings in Q4-10

Service Provider customer momentum– 13 Tier 1 Service Provider wins in 30 months– 7 new Tier 1 Service Provider wins in 2010– Over 20 Tier-1 trials ongoing or planned over the next 60 days– Balanced wins across both Mobile and Cable

Partnership momentum– Five-year OEM agreement with Genband– Procera and BroadHop Deliver Integrated Policy Management and Control

for LTE Networks

Procera Highlights

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We Live in a Hyper-connected SocietyOne user, multiple devices, many applications

The New Digital LifestyleMore connected

Fixed and MobileBroadband Experience

Severe Stress on Broadband ProvidersNetwork backhaul and congestion

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MORE users, devices and applications = MORE congestion and complexity

Network Intelligence is Required

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Impact on Broadband Providers Organizations

Marketing Engineering

Finance Customer Support

• Blind to application trends for subscriber base

• Flat rate / usage-based pricing are only service package options

• Pervasive congestion in access and backhaul

• No application visibility for devices, locations, or subscriber trending

• Overloaded with poor performance complaints

• No tools to track customer complaints on network performance

• Return on Infrastructure Investment is poor

• Business model success dependent on device exclusivity or new devices

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Intelligent Policy Enforcement is RequiredEnables rapid deployment of services

Subscribers Intelligent Policy Enforcement Applications

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3GPP Wireless Enforcement Ecosystem

HostedContent

PartnerContent

InternetContentIntelligent

Policy Enforcement

Charging(OCS, OFCS)

Customer Portal

(Events)

Policy Management

(PCRF)

Enforcement (PCEF) Layer

Management Layer

GGSNPDSN

SAE-GW

InternetRouter

Call Center

AAA(SPR)

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• Signaling load is too high since infrastructure is “dumb”• Location awareness disconnected from service plans and applications• Congestion management not effective

We Are the Engine in the 3GPP EcosystemIntelligence required to reduce load

Without Intelligence:

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Solution: Intelligent Policy EnforcementEnabling Revolutionary Services

Intelligent Policy Enforcement

Core

Tech

nology

Applicati

on

Solution

BusinessIntelligence

NetworkOptimization

CongestionManagement

ServiceInnovation

NetworkProtection

Chargingand Billing

Bill-ShockPrevention

DPI Technology

Intelligent Policy Enforcement Value Proposition

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Benefit

Network Intelligence

Network Optimization

Security/Protection

Services Creation

User, application, location and device awareness enables identification of changes as threats or opportunities.

Improve quality and postpone CAPEX investments by helping IP to function with today’s service requirements and plethora of applications.

Intelligence enables early detection and mitigation of anomalies due to security issues.

Manage end-customer offerings and service packages based on conclusions from analysis of actual user behavior and customer requests.

Solution

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• Congestion Management• Tiered Services• Usage Management• Captive Portal Services• Roaming Warning/Bill Shock

Prevention/AOC• Roaming-based Shaping• Zero-based Rating/Billing• Application-based Services (Content

Filtering, Caching, Optimization)

Policy Enforcement Use CasesSubscriber Service Creation

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Standalone Deep Packet Inspection Market to Grow to $1.5 Billion by 2013

Source: Infonetics Research – Service Provider Deep packet Inspection Market Outlook, market Share, Size and Forecast, December 2010

Revenue

Worldwide Deep Packet Inspection Product Revenue

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

CY08 CY09 CY10 CY11 CY12 CY13

Rev

enue

(US$

M)

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

220%

Gro

wth

(%)

CY14

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$1.1 trillion* global mobile revenue– 26%, or $220 bn*, mobile data revenue

Softbank of Japan, had more data than voice revenue in 10Q1*– More operators will follow this year

Mobile data will grow 66x by 2013**– Data revenue will not grow at the same rate

Mobile Data Revenue

Sources: *Chetan Sharma Consulting, Global Wireless Data Market**Cisco Visual Networking Index, 2008-2013

Traffic and Intelligent Policy Enforcement (IPE) is the key to

revenue driving service innovation!

Streaming Video Exploding UsageQuality of experience crucial to adoption

http://blogs.wsj.com/digits/2010/12/13/internet-now-as-popular-as-tv-survey-shows

Internet now as popular as

TV, survey shows

Dec 13, 2010

Could this finally be the

season for Web TV?

Nov 13, 2010

http://www.usatoday.com/tech/news/techinnovations/2009-11-13-1Awebtv13_CV_N.htm

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PSM PIC PREPacketLogic

Subscriber Manager

PacketLogicRealtime Enforcement

PacketLogicIntelligence Center

• Tight integration with BSS/OSS to delivernetwork, subscriber, service, and location awareness

• Policy Management framework for standards compliance

• Real-time and historical visibility into applications, locations, devices, and subscribers

• Automated report generation and feeds for customer portals

• Real-Time Policy Enforcement Point to enforce business logic

• Network Intelligence collection for PIC on thousands of user, location, device, and application parameters

The Procera Solution FamiliesDelivering Intelligent Policy Enforcement

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Broad Product Portfolio

Statistics servers

Core

Edge

Access

1RU PL5600

1 – 3xGE channels

4 – 100 Mbps, 80k flows

2RU PL77201 – 2xGE channels

2 Gbps, 1M flows

2RU PL87204X10GE/ 1-8XGE channels

10 Gbps, 4M flows

5RU PL100051x10GE / 10xGE channels

20 Gbps, 5M flows

12RU PL100141 - 4x10GE channels

80 Gbps, 48M flows

PL1420PL1200

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Advantages of Procera’s Technology

Service Flexibility

Granular Accuracy

Performance &Scalability

Real-Time Analytics

• Subscriber Model is configurable• Mass Personalization of subscriber services• Application/Usage/Tiered service options

• Subscriber, location & device awareness• Deep application awareness• Virtual services for polices

• Highest performance in the industry• Millions of subscribers• 10,000s transactions per second

• Real-Time network and location visibility• Detailed business intelligence and reports• Deep application visibility

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Competitive Landscape

Intelligent Policy Enforcement Features

Performance & Scalability

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Procera’s Solutions are:

Faster

Scalable

Smarter

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Today's consumers are in motion. Ensure that your

policy enforcement is too.

Thank You