Akamai Completes Acquisition of Verivue

                   Akamai Completes Acquisition of Verivue

PR Newswire

CAMBRIDGE, Mass., Dec. 5, 2012

CAMBRIDGE, Mass., Dec. 5, 2012 /PRNewswire/ -- Akamai Technologies, Inc.
(NASDAQ: AKAM) today announced it has completed its acquisition of Verivue, a
privately-held company based in Westford, Massachusetts that provides licensed
content delivery network (CDN) infrastructure solutions for network operators.
On November 13, 2012, Akamai announced a definitive agreement between the
parties pursuant to which Akamai would acquire Verivue in a cash transaction.

(Logo:http://photos.prnewswire.com/prnh/20100225/AKAMAILOGO)

The combination of the two companies' technologies and teams is expected to
help Akamai accelerate market availability of a comprehensive portfolio of
Operator CDN products.

"Network operators are turning to CDN technologies as a strategic and highly
complementary way to offer new and differentiated content services, reduce
network infrastructure costs, and ensure a quality experience for subscribers
across a variety of IP-connected devices," said Paul Sagan, President and CEO
of Akamai. "Since the launch of ourAura Network Solutions earlier this year,
Akamai has been meeting with network operators worldwide. With our
acquisition of Verivue now complete, we believe we are well-positioned to
offer network operators a more robust, operator CDN solution as well as
federation with the world's leading content delivery platform."

The company does not expect the acquisition of Verivue to materially impact
results of operations in the current quarter. Accordingly, Akamai will not be
updating fourth quarter 2012 guidance as a result of this acquisition. The
acquisition is expected to be slightly dilutive by approximately one cent on a
normalized, diluted per share basis* in 2013.

About Akamai
Akamai^® is the leading cloud platform for helping enterprises provide secure,
high-performing user experiences on any device, anywhere. At the core of the
Company's solutions is the Akamai Intelligent Platform™ providing extensive
reach, coupled with unmatched reliability, security, visibility and
expertise. Akamai removes the complexities of connecting the increasingly
mobile world, supporting 24/7 consumer demand, and enabling enterprises to
securely leverage the cloud. To learn more about how Akamai is accelerating
the pace of innovation in a hyperconnected world, please visit www.akamai.com
or blogs.akamai.com, and follow @Akamai on Twitter.

*Use of Non-GAAP Financial Measures
In addition to providing financial measurements based on generally accepted
accounting principles in the United States of America (GAAP), Akamai has
historically provided additional financial metrics that are not prepared in
accordance with GAAP (non-GAAP). Legislative and regulatory pronouncements
discourage the use of and emphasis on non-GAAP financial metrics and require
companies to explain why non-GAAP financial metrics are relevant to management
and investors. We believe that the inclusion of these non-GAAP financial
measures in this press release helps investors to gain a meaningful
understanding of our past performance and future prospects, consistent with
how management measures and forecasts our performance, especially when
comparing such results to previous periods or forecasts. Our management uses
these non-GAAP measures, in addition to GAAP financial measures, as the basis
for measuring our core operating performance and comparing such performance to
that of prior periods and to the performance of our competitors. These
measures are also used by management in its financial and operational
decision-making. There are limitations associated with reliance on these
non-GAAP financial metrics because they are specific to our operations and
financial performance, which may  make comparisons with other companies'
financial results more challenging. By providing both GAAP (where available)
and non-GAAP financial measures, we believe that investors are able to compare
our GAAP results to those of other companies while also gaining a better
understanding of our operating performance as evaluated by management.

Akamai defines "normalized net income" as net income before amortization of
other intangible assets, stock-based compensation expense, amortization of
capitalized stock-based compensation, restructuring charges and benefits,
acquisition related costs and benefits, certain gains and losses on
investments, loss on early extinguishment of debt and gains and losses on
legal settlements. Akamai considers normalized net income to be another
important indicator of the overall performance of the Company because it
eliminates the effects of events that are either not part of the Company's
core operations or are non-cash.

Akamai defines "normalized net income per share" as normalized net income,
plus interest add-back for diluted share calculation, divided by the basic
weighted average or diluted common shares outstanding used in GAAP net income
per share calculations. Akamai considers normalized net income per share to be
another important indicator of overall performance of the Company because it
eliminates the effect of non-cash items. Adjusted EBITDA and normalized net
income should be considered in addition to, not as a substitute for, the
Company's operating income and net income, as well as other measures of
financial performance reported in accordance with GAAP.

Akamai is unable to provide a reconciliation on a forward-looking basis of
normalized net income per share to net income per share calculated in
accordance with GAAP because the Company does not have and is currently unable
to estimate the following items that are excluded from the calculation of net
income per share: amortization of other intangible assets; stock-based
compensation expense; amortization of capitalized stock-based compensation;
acquisition related costs (benefits); and restructuring (benefits) charges.

Akamai Statement Under the Private Securities Litigation Reform Act
This release contains information about future expectations, plans and
prospects of Akamai's management that constitute forward-looking statements
for purposes of the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995, including statements about revenue and earnings
per share guidance for the fourth quarter of 2012. Actual results may differ
materially from those indicated by these forward-looking statements as a
result of various important factors including, but not limited to, effects of
increased competition including potentially failure to maintain the prices we
charge for our services and loss of significant customers; failure of the
markets we address or plan to address to develop as we expect or at all;
inability to increase our revenue at the same rate as in the past and keep our
expenses from increasing at a greater rate than our revenues; a failure of
Akamai's services or network infrastructure; delay in developing or failure to
develop new service offerings or functionalities, and if developed, lack of
market acceptance of such service offerings and functionalities or failure of
such solutions to operate as expected, and other factors that are discussed in
the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and
other documents periodically filed with the SEC.

In addition, the statements in this press release represent Akamai's
expectations and beliefs as of the date of this press release. Akamai
anticipates that subsequent events and developments may cause these
expectations and beliefs to change. However, while Akamai may elect to update
these forward-looking statements at some point in the future, it specifically
disclaims any obligation to do so. These forward-looking statements should
not be relied upon as representing Akamai's expectations or beliefs as of any
date subsequent to the date of this press release.

Contacts:
Jeff Young
Media Relations
617-444-3913
jyoung@akamai.com

Natalie Temple
Investor Relations
617-444-3635
ntemple@akamai.com

SOURCE Akamai Technologies, Inc.

Website: http://www.akamai.com
 
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