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Julie Karbo                                                                 
K/F Communications for Anagran                            
(415)255-6505                                                                       

ANAGRAN CLOSES $8.6 MILLION SERIES D FINANCING ROUND

To Support Continued Technology Advancement and Global Sales Development

Sunnyvale, Calif. – September 15, 2008 – Anagran, the leading provider of high capacity network traffic management technology and products, today announced that the company has closed a Series D round of funding totaling $8.6 million.  Each of the company’s existing venture capital investors – Advanced Technology Ventures, ArrowPath Venture Partners, and Draper Fisher Jurvetson – invested in this latest round.  The funding will be used to expand Anagran’s global sales presence and further bolster its engineering resources.

Anagran designs and produces high capacity flow management products that protect all key network traffic by ensuring the highest level of performance of video, voice and other multimedia traffic within service provider and corporate networks.  The company’s flagship product, the FR-1000 optimally governs any mix of network traffic to eliminate congestion caused by contending next-generation applications.  By optimally managing the rate of every flow (e.g., a streaming video, voice call, email message, file transfer, etc), Anagran’s unique technology protects the performance of all delay-sensitive traffic while increasing the effective capacity of any IP network.  

“Anagran products eliminate theTCP traffic jam by closely watching and managing all network flows.  With the fastest growing portion of network traffic being disguised via compression, encryption, port-hopping, and other means, our application- , protocol- , and format-agnostic flow management technology fool-proofs networks against surges from any kind of traffic,” said Kim Niederman, president and CEO of Anagran.  “As a result, our products provide instant performance, fairness, and capacity gains within any existing network.  The greater the volume and variety of traffic the better.  Companies will frequently see a return on investment in less than six months.” 

“We believe Anagran is in the right spot at exactly the right time,” said Dan Brown, Technology Partner at ArrowPath Venture Partners.  “Capacity-hungry traffic that chokes network resources will continue to grow, and Anagran has the only remedy that handles all traffic and easily scales to 10GigE speeds and beyond.  We see increased demand for Anagran’s products throughout the world, and we’re happy to continue our investment to help the company grow its sales force and develop new products.”

About Anagran
Anagran was founded by Internet pioneer Dr. Larry Roberts, recognized as one of the founding fathers of the Internet.  Anagran’s flow-based traffic management products eliminate the potentially crippling effects of network congestion to enable video, voice, data and wireless traffic to economically scale with flawless quality over converged IP networks.  Anagran’s FR-1000 protects all key network traffic by managing end-to-end flows based on their behavior to ensure required quality and performance levels. The FR-1000 dynamically manages all network traffic regardless of application, protocol, or format, without using invasive, performance-limiting deep packet inspection (DPI) techniques.  Service providers and enterprises can consistently deliver the highest levels of guaranteed performance and quality while significantly reducing capital equipment and recurring network costs.  Information about Anagran can be found at www.anagran.com.