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Press release from Business Wire

Acme Packet Unveils New Class of Product to Control Policy Exchange in LTE and IMS Networks

<p class='bwalignc'> <i>Net-Net Policy Director provides critical security, routing and interoperability functions for LTE data and voice roaming and scaling all-IP networks</i> </p>

Monday, February 14, 2011

Acme Packet Unveils New Class of Product to Control Policy Exchange in LTE and IMS Networks02:30 EST Monday, February 14, 2011 BARCELONA, Spain (Business Wire) -- Acme Packet® (NASDAQ: APKT), the leader in session border control solutions, today unveiled the Net-Net® Policy Director, a policy exchange controller (PEC). A PEC is a new class of product that addresses critical security, interoperability, routing and scaling challenges in next generation all-IP networks. The Net-Net Policy Director supports multiple applications—LTE data and voice roaming, policy aggregation and federated service delivery—by enabling the exchange of policy information within service provider LTE or IMS networks and across LTE network borders. Long Term Evolution (LTE) and IP Multimedia Subsystem (IMS) networks require the exchange of policy information among network elements for each subscriber data, voice and multimedia session. Diameter is the IP signaling protocol that supports this policy information exchange. A PEC is a new network element that controls Diameter signaling, enabling the seamless communication and control of policy information between network elements within LTE or IMS networks and across LTE network borders. These functions reduce costs, streamline networks and assure availability for LTE and IMS networks. “Yankee Group believes that policy exchange controllers are essential building blocks in the all-IP world of LTE and IMS,” commented Brian Partridge, vice president, Network Research with Yankee Group. “Acme Packet is taking advantage of its IMS border control leadership and IP signaling expertise to define a new product category and launch a compelling solution to help service providers successfully grow their next generation networks.” Policy exchange controllers in LTE and IMS Policy exchange involves the transmission of subscriber and session information related to authentication, authorization, location, charging and quality of service (QoS) in LTE and IMS networks. Using Diameter signaling, this exchange takes place between distinct network elements from different vendors as well as between different service providers. In the all-IP networks of LTE and IMS, Diameter signaling replaces the legacy SS7 signaling in legacy TDM mobile and fixed networks. “As LTE and IMS networks grow in number and subscribers, Diameter-based policy exchange will become instrumental to service provider profits,” explained Seamus Hourihan, vice president of marketing and product management with Acme Packet. “Acme Packet is taking the lead in defining the policy exchange controller requirements and extending session border control to new networks and new protocols with the Net-Net Policy Director.” There are three primary applications enabled by PECs: LTE data and voice roaming – PECs secure the new Diameter signaling border between visited and home service providers so roaming subscribers can access both data and voice services. PECs also enable IPX carriers and roaming hubs to deliver multilateral LTE roaming services. Policy aggregation – PECs simplify the mesh of connections between a myriad of Diameter elements—including the Home Subscriber Server (HSS), Policy Charging and Rules Function (PCRF) and Mobility Management Entity (MME)—and ensure interoperability between different vendors and products within a service provider LTE or IMS network. They allow the network to scale cost-effectively and provide a centralized point for management and reporting of Diameter messages and connections. Federated service delivery – PECs facilitate policy exchange between a network transport provider and a service provider, such as a mobile virtual network operator (MVNO) or over-the-top/cloud provider, enabling new revenue-sharing business models while ensuring an optimal user experience. Net-Net Policy Director delivers superior Diameter control The Net-Net Policy Director is a standards-based Diameter proxy and fulfills functional elements defined by industry groups, including the 3GPP Diameter Routing Agent (DRA) and GSMA Diameter Edge Agent (DEA). The Net-Net Policy Director supports numerous Diameter profiles used throughout IMS and LTE. Employing Net-Net OS, Acme Packet's feature-rich software, the Net-Net Policy Director provides a comprehensive set of functions required to cost-effectively grow LTE and IMS networks. Acme Packet's Net-SAFE® security framework, field-proven in large service provider networks, protects service provider LTE roaming borders, assuring service availability. The powerful and scalable routing engine of the Net-Net OS can make routing decisions on a flexible combination of Diameter message content and simplifies route management in the network. As a Diameter proxy with layer 3–layer 5 interworking, the Net-Net Policy Director enables interoperability between vendors, elements and networks, expediting time to market. Aggregation and reporting of Diameter transactions simplifies roaming settlement as well as network planning and troubleshooting. Operating on the Net-Net 4500 hardware platform, the Net-Net Policy Director provides high-performance processing of Diameter messages—up to 16,000 messages per second in a single rack unit system. Scaling to over 750,000 messages per second in a 7-foot telco rack, the Net-Net Policy Director provides leading performance capabilities with compelling price-performance advantages. For voice over LTE (VoLTE) roaming applications, the Net-Net Policy Director can be integrated with Acme Packet's industry-leading Net-Net session border controller (SBC). This integration seamlessly combines SIP and Diameter security and controls in the same physical system, providing a low total cost of ownership. More information on the Net-Net Policy Director and related solutions will be available at Acme Packet's hospitality suite AV38 at GSMA Mobile World Congress taking place February 14-17 in Barcelona, Spain. To learn more, schedule a meeting at the event. Yankee Group, a leading industry analyst firm, recently released a whitepaper entitled Policy Exchange Controllers: Enriching Diameter Signaling for LTE and IMS that explores the key challenges and requirements for operators deploying LTE and IMS networks at significant scale, including defining policy exchange controllers as critical elements to success. The report is available to download from Acme Packet's website at www.acmepacket.com/policyexchangecontrol. About Acme Packet Acme Packet (NASDAQ: APKT), the leader in session border control solutions, enables the trusted, first-class delivery of next-generation voice, data and unified communications services and applications across IP networks. Our Net-Net product family fulfills demanding security, service assurance and regulatory requirements in service provider, enterprise and contact center networks. Based in Bedford, Massachusetts, Acme Packet designs and manufactures its products in the USA, selling them through over 140 reseller partners worldwide. More than 1,300 customers in 105 countries have deployed over 11,000 Acme Packet systems, including 90 of the top 100 service providers and 30 of the Fortune 100. For more information visit www.acmepacket.com. Acme Packet, Inc. Safe Harbor Statement Statements contained herein that are not historical fact may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may relate, among other things, to our position in the session border control market, our expected financial and operating results, our ability to establish and maintain intellectual property rights, our ability to build and grow Acme Packet, the benefits and advantages of our products, including any enhancements or new features, services and programs, and our ability to achieve our goals, plans and objectives. Such forward-looking statements do not constitute guarantees of future performance and are subject to a variety of risks and uncertainties that could cause our actual results to differ materially from those anticipated. These include, but are not limited to: difficulties in growing our customer base, difficulties leveraging market opportunities, difficulties providing solutions that meet the needs of customers, poor product sales, long sales cycles, difficulty developing new products, difficulty in relationships with vendors and partners, higher risk in international operations, difficulty managing rapid growth, and increased competition. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in our recent filings with the Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in such filings. Media Contact:CHEN PRRandy Wambold, +1-781-672-3119rwambold@chenpr.comorInvestor Relations:Acme PacketBrian Norris, +1-781-328-4790bnorris@acmepacket.com