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Keynote Red Alert Press Releases

August 21, 2000

PRESS RELEASE

Keynote Acquires Red Alert, Provider of Industry-Leading Web Monitoring and Alarm Services

Adds 900 New Customers to its Existing Base of 1350 Corporate Customers

Call Keynote's Press Hotline at (650) 403-3254 for Results and to Arrange Interviews

Note to press and analysts: Call Keynote's media and analyst relations hotline at (650) 403-3254 to request more information or an interview. To be added to Keynote's press-release distribution list, send an email to press@keynote.com and specify media affiliation.

SAN MATEO, California, August 18, 2000 -- Keynote (Nasdaq:KEYN), The Internet Performance Authority®, today announced the acquisition of Red Alert, a privately-held company based in Dallas, Texas with over 1,000 corporate customers that is a provider of Web site accessibility monitoring for e-businesses worldwide. The purchase price is $15 million paid in cash, with additional cash of up to $10 million based upon the successful achievement of certain performance goals. The acquisition will be accounted for as a purchase. The acquisition strengthens Keynote's leadership position with immediate ability to market and sell its services to Red Alert's corporate customers interested in measuring, assuring and improving e-commerce quality of experience (QoE).

Red Alert was recently named by Information Week as one of the 100 most innovative e-business companies in America, carries no debt or outside investment. Red Alert's customer base includes Fortune 1000 companies in all industry sectors such as telecommunications (Lucent Technologies (NYSE:LU)), finance (Citicorp (NYSE:C), information technology (IBM (NYSE:IBM)), banking (The Chase Manhattan Corporation (NYSE:CMB)) and retail (Best Buy Company (NYSE:BBY)).

The acquisition provides both the Keynote and the Red Alert customer base, a small percentage of which are existing customers of both companies, with complementary one-stop, outsourced solutions to meet all their mission-critical needs related to Web site performance. Keynote is the leader and trusted authority in Web site and application performance measurement, diagnostics and load testing and has built the world's largest global measurement computer infrastructure for benchmarking and improving end-user Web site experience. Red Alert is the leader in accessibility monitoring and sophisticated real-time alert systems. Both services are critical for superior online customer service and retention.

"This is a tremendous win/win acquisition from both a technology and business perspective due to the natural synergies between our two companies, but an even greater win for our customers and prospects," said Umang Gupta, Chairman and CEO of Keynote. "Red Alert's Web site accessibility monitoring and sophisticated real-time alerts, added to Keynote's growing line of e-commerce benchmarking, diagnostic and load testing services, strengthen the range of solutions we provide to companies concerned about the Quality of Experience (QoE) for their online customers. They now have unprecedented access to a family of outsourced solutions for measuring, assuring and improving the performance of their Web sites from an end user perspective."

Research shows that 75% of accessibility failures cannot be detected locally since most of the problems occur across the network outside the firewall. The newly renamed Keynote Red Alert "outside in" service constantly monitors the availability of its customers' mission-critical networks, Web servers and applications from an end-user perspective. When Keynote Red Alert detects that a monitored device is inaccessible, is returning incorrect data or is responding slowly to connection requests, the service immediately dispatches error notifications to customers' designated personnel by email, numeric or alpha-numeric pagers or wireless phones via text messaging. Red Alert's sophisticated real-time alert system provides an excellent companion to Keynote's performance threshold-based alarm capability provided by Keynote's Perspective measurement service, which notifies companies when a Web site is taking longer than a specified number of seconds to download a page or execute a transaction from any one of 50 metropolitan areas worldwide.

Keynote Red Alert offers a near-zero false alarm rate which is of great importance to Webmasters, system administrators and operations personnel tasked with maintaining 100% uptime of their network operations centers, Web servers, email servers and other Internet devices. The Keynote Red Alert ‘checking sequence' is designed to provide foolproof verification of a monitored device's accessibility to the Internet. Every error condition is triple-checked, using three fully-independent Internet connections with no common backbone networks, local Internet access providers or local network equipment among them. Keynote Red Alert customers are notified about a problem after Keynote Red Alert has attempted three different major backbone paths to their device and found the connection to be inaccessible or malfunctioning all three times.

"Keynote's unmatched global measurement infrastructure and offering, combined with our accessibility monitoring, diagnostic and alerting technologies, presents our customers, prospects and partners tremendous synergies now and moving forward. We are extremely excited to join the Keynote team," said Michael Martin, general manager of Keynote's Red Alert division.

"Red Alert has been my availability gospel from day one of bCentral operations. It's a reliable service with an easy-to-understand interface at a terrific price. An invaluable tool for Web sites that consider uptime to be of critical importance," said William F. Nagle, bCentral Operations Program Manager, Microsoft Corp.

About Red Alert
Founded in 1995, Red Alert is the leading provider of Web site accessibility monitoring for e-businesses worldwide. The company's Red Alert service constantly monitors the availability of its customers' mission-critical networks, Web servers and applications from an end-user perspective.

About Keynote
Keynote, The Internet Performance Authority®, is the world's leading provider of e-commerce performance benchmarking, diagnostic, load-testing and consulting services. The company markets Keynote PerspectiveTM, Transaction PerspectiveTM, Consumer PerspectiveTM and Keynote Red AlertTM, global real-time services that measure, assure and improve the quality of service of e-commerce Web sites around the world and KeyReadinessTM, an accurate and realistic pre- and post- deployment Web-site load testing service. Keynote currently measures more than 12,500 URLs using its global infrastructure of more than 750 measurement computers connected to the major Internet backbones from over 120 statistically selected Internet access locations representing 50 metropolitan areas worldwide. Internet performance and availability data are collected at Keynote's sophisticated operations center and are instantly available to customers through any Web browser.

Keynote customers include over 1,350 leading e-commerce Web sites and hosting companies including AdForce (Nasdaq:CMGI), Akamai (Nasdaq: AKAM), Blockbuster (NYSE: BBI), Compaq Computer (NYSE:CPQ), Cisco Systems (Nasdaq:CSCO), Dell Computer (Nasdaq:DELL), Digital Island (Nasdaq:ISLD), Digex (Nasdaq:DIGX), DoubleClick (Nasdaq:DCLK), Global Center (Nasdaq:GBLX), Microsoft (Nasdaq:MSFT), National Semiconductor (NYSE:NSM), SABRE Holdings (NYSE:TSG), UPS (NYSE: UPS) and WorldCom/UUNET (Nasdaq:WCOM).

Keynote is a member of the internationally known Stanford University Statistics Department's Industrial Affiliates Program and works with Stanford statistics experts within the program to help define its methodology for measuring Web-site performance and ensure the accuracy of its data.

For further information about Keynote, visit the Keynote Web site at http://www.keynote.com.

Keynote, Perspective, MyKeynote, Lifeline and The Internet Performance Authority are trademarks of Keynote Systems, Inc. Other trademarks are the property of their respective owners.

Editorial Contacts:
Dan Berkowitz, Keynote, (650) 403-3305, dberkowitz@keynote.com
Mary Lindsay, Lindsay PR, (408) 984-7242, mary@lindsaypr.com
Sarah O'Connell, Ruder Finn, (212) 583-2724, oconnells@ruderfinn.com

 

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