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Press Releases Wednesday, May 30, 2001   
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LOUDCLOUD EXPANDS PERFORMANCE ENHANCEMENT OFFERINGS WITH CACHING CLOUD™ SERVICE

Managed Solution, Powered By CacheFlow, Allows Customers To Increase Web Site Performance While Controlling Infrastructure Costs

Sunnyvale, CA, May 30, 2001 -- Loudcloud Inc. (NASDAQ:LDCL), the leading managed services provider, today announced the debut of its Caching Cloud™ service, powered by CacheFlow (NASDAQ: CFLO), the leader in content-smart networking. The Caching Cloud service, available today, allows Loudcloud customers to serve five to ten times more Web content through existing server and network infrastructure. The solution enables organizations to increase revenue and customer loyalty, reduce user response times, and minimize capital and operational expenses.

For enterprise and e-business companies that depend on the Internet, Web site performance is as critical to delivering an optimal end-user experience as the site content itself. However, under the pressures of rising traffic volumes, richer content types, and increased user expectations, today`s server dependent infrastructures experience significant strain. By offloading user requests from the Web server onto a CacheFlow cIQ™ Server Accelerator, Loudcloud customers can enjoy fifty to eighty percent faster Web site response times, sharply reduce their management costs and increase site capacity more cost effectively than by adding Web servers to scale their infrastructure.

"Web site performance has become a critical factor for many of our customers as they continue to grow and address new opportunities" said Tim Howes, CTO and President of Product Operations for Loudcloud. "We are committed to providing our customers with the tools and services they need to maximize site performance. By partnering with CacheFlow, we can provide customers with a cost effective solution to enhance their site`s performance and scalability."

The new Caching Cloud service is based on CacheFlow`s award winning cIQ Server Accelerator 700 Series, specifically designed to improve the performance, scalability, and manageability of high-traffic Web sites. Within today`s Web architectures, Web servers deliver all content to requesting end-users. As site traffic grows or companies add richer content to their site, they must continuously add additional Web servers to maintain a high level of Web site performance. The Caching Cloud service is built to offload content delivery tasks from Web servers, reducing stress and load while enhancing site performance and scalability. Using the Caching Cloud service, Loudcloud customers can serve more users of their Web site with lower infrastructure costs.

"CacheFlow is excited to bring the performance and scalability of content delivery appliances to Loudcloud`s managed service offerings." said Brian NeSmith, CEO of CacheFlow. "Enterprises and e-businesses are struggling to keep up with the explosion of demand on the Internet. Combining CacheFlow`s technology with Loudcloud`s comprehensive services provides a cost-effective, high-value solution to improve Web site response time and scale capacity."

Loudcloud customers no longer need to procure, install, configure or maintain the hardware and software infrastructure products that serve as the backbone of their high traffic, Internet site. Instead, through Loudcloud`s Smart Cloud™ services, a business can subscribe to the same infrastructure in the form of a 24x7 managed service. These Smart Cloud services utilize Loudcloud`s unique Opsware™ automation technology, which captures and manages via software the thousands of pieces of information, decisions and processes required to deploy, manage and grow an Internet infrastructure.

About Loudcloud, Inc.
Loudcloud is the leading managed services provider, offering a new solution for outsourcing global Internet operations for enterprise companies, application service providers and large-scale Internet businesses. Loudcloud moves beyond hosting or consulting services with its unique Opsware technology to automate, scale, and monitor Internet operation functions previously done by hand. Loudcloud manages its infrastructure network via a worldwide network of data centers and Network Operations Centers (NOCs) located in North America and Europe. For more information on Loudcloud, please visit our web site at www.loudcloud.com.

About CacheFlow
CacheFlow® Inc. (NASDAQ: CFLO) is focused on content-smart networking -- a new layer of infrastructure for intelligently accelerating, delivering, and managing static, streaming, and dynamic content. CacheFlow`s market-leading appliances and innovative content delivery technologies enable enterprises, service providers and content delivery network providers to deliver the right content to the right place at the right time. Based in Sunnyvale, California, CacheFlow can be contacted via telephone at (408) 220-2200, fax at (408) 220-2250 or email at info@cacheflow.com.

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Loudcloud, Opsware, Caching Cloud and Smart Cloud are service marks and trademarks of Loudcloud, Inc. CacheFlow is a registered trademark of CacheFlow Inc. in the U.S. and worldwide. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners.

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