Meru Networks Appoints Eric Singer and Stephen Domenik to Board of Directors

Meru Networks Appoints Eric Singer and Stephen Domenik to Board of Directors 
SUNNYVALE, CA -- (Marketwired) -- 01/14/14 --  Meru Networks, Inc.
(NASDAQ: MERU) today announced its entry into an agreement dated
January 13, 2014 with Potomac Capital Partners III, L.P. and certain
related parties to, among other things, appoint two new independent
directors -- Eric Singer and Stephen Domenik -- to its board of
directors. With these additions, the Meru board of directors now
comprises nine directors.  
"We are pleased to welcome Eric and Steve to our board and look
forward to their contributions," said William Quigley, chairman of
the Meru Board of Directors. "Adding Eric and Steve to the Meru Board
of Directors is consistent with our commitment to consider
constructive input from our stockholders."  
"We are very pleased with the agreement reached with Meru, which we
believe will provide new independent voices and perspectives to
Meru's board," said Singer, co-managing member of Potomac Capital
Partners III, L.P. "Steve and I look forward to working with the Meru
board to continue building stockholder value."  
Background of the new directors 
Eric Singer brings significant experience as a public company
director of technology companies, as well as significant financial
and investment experience, to the Meru Board of Directors. He
currently serves as a co-managing member of Potomac Capital
Management III, L.L.C., the general partner of Potomac Capital
Partners III, L.P., and Potomac Capital Management II, L.L.C., the
general partner of Potomac Capital Partners II, L.P. since March 2012
and has served as an advisor to Potomac Capital Management, L.L.C.
and its related entities since May 2009. Singer has also served as a
director of PLX Technology, Inc., a publicly traded semiconductor
company, since December 2013. Singer served as chairman of the board
of Sigma Designs, Inc. a publicly traded semiconductor company, from
January 2013 until December 2013, and was a board member from August
2012 until December 2013. From August 2008 until its sale in February
2010, Singer served as a director of Zilog Corporation, a publicly
traded semiconductor company. From July 2007 to April 2009, Singer
was a senior investment analyst at Riley Investment Management. He
managed private portfolios for Alpine Resources, LLC from January
2003 to July 2007. Singer holds a B.A. from Brandeis University.  
Stephen Domenik has been a general partner at Sevin Rosen Funds, a
venture capital firm, since 1995, and brings considerable experience
from both established and small companies in the semiconductor and
software industries to the Meru Board of Directors. Domenik has also
served as a director of PLX Technology, Inc., a publicly traded
semiconductor company, since December 2013; director of Pixelworks,
Inc., a publicly traded designer, developer and marketer of video and
pixel processing semiconductors, since August 2010 and director of
MoSys, Inc., a publicly-traded, IP-rich, fabless semiconductor
company, since June 2012. He served on the board of directors of
NetLogic Microsystems, Inc., a publicly-traded fabless semiconductor
company, from January 2001 until it was acquired in February 2012.
Domenik was previously CEO of two high-technology companies in the
RFID and software domains. He was also vice president of marketing at
Cyrix, an SRF portfolio company, where he worked from its early days
until after its IPO. Prior to Cyrix, Domenik was the vice president
of marketing at Weitek, a venture-backed startup company that also
went public. Domenik holds an M.S. in electrical engineering
(M.S.E.E.) and a B.S. in physics from the University of California at
Berkeley. 
Nomination and Standstill Agreement 
In connection with the appointment of Singer and Domenik to the Meru
board of directors, Meru entered into a Nomination and Standstill
Agreement with certain entities and persons affiliated with Potomac
Capital Partners III, L.P. The agreement provides, among other
things, for the following: 


 
--  The appointment of Singer and Domenik to the Meru Board of Directors,
    bringing the current total number of directors to nine.
--  Subject to Potomac maintaining a minimum level of ownership of not
    less than five percent, Meru will nominate, recommend, support and
    solicit proxies for the election of the Potomac nominees in the same
    manner as Meru's other nominees at the 2014 annual meeting.
--  Effective immediately following the 2014 annual meeting and through
    the end of the Covered Period as defined in the Nomination and
    Standstill Agreement (which will initially last until the date that is
    10 business days prior to the nomination deadline for the 2015 annual
    meeting of stockholders), Meru will maintain a total number of
    directors at seven.
--  Potomac will be restricted from increasing stock ownership above 10
    percent and will not engage in hedging transactions with respect to
    Meru stock. The Potomac entities and their affiliates owned
    approximately 1,171,226 shares of Meru common stock, representing
    approximately 5.2 percent of Meru's outstanding shares, as of December
    31, 2013.
--  During the Covered Period, Potomac will abide by certain
    confidentiality and other standstill obligations, including, among
    other things, restrictions regarding participating in any further
    proxy contests or other activist campaigns, seeking other
    representation on the Board, or proposing or participating in an
    acquisition involving the Company.
--  The Potomac entities will vote their shares in favor of Meru's slate
    of nominees for election to the Board of Directors at the company's
    2014 annual meeting.

  
Please see the Current Report on Form 8-K to be filed by Meru with the
SEC today for a more complete summary of, and a complete copy of, the
Nomination and Standstill Agreement. 
About Meru Networks
 Meru Networks (NASDAQ: MERU) is a market leader
in the development of mobile access and virtualized Wi-Fi solutions.
Meru's MobileFLEX wireless architecture addresses the ever-growing
need for higher bandwidth and higher client densities. The Meru
Identity Manager solution greatly simplifies secure device
on-boarding and the company's unique Context-aware Application Layers
enable dedicated channel assignments for specific applications,
devices and usage scenarios. Meru customers include Fortune 500
businesses as well as leaders in education, healthcare and
hospitality. Founded in 2002, Meru is headquartered in Sunnyvale,
Calif., with operations in North America, Europe, the Middle East,
Asia Pacific and Japan. Visit www.merunetworks.com or call (408)
215-5300 for more information. 
Copyright2014 Meru Networks. Meru is a registered trademark and the
Meru logo is a trademark of Meru Networks, Inc. in the United States. 
Press Contact
Wilson Craig
Director of Public Relations 
Meru Networks
+1 408 516 6182
wcraig@merunetworks.com 
Investor contact: 
Ed Keaney 
Market Street Partners 
+1 415 445 3238
ir@merunetworks.com