Blue Coat Announces Dismissal of Securities Class Action Lawsuit

Blue Coat(R) Systems,
Inc. (Nasdaq: BCSI), a leading provider of proxy appliances, today announced
that the securities class action lawsuit filed against the Company and certain
of its current and former officers concerning the fourth quarter of fiscal
2004 has been voluntarily dismissed without prejudice by the lead plaintiff.

About Blue Coat Systems
Blue Coat helps organizations make the Web safe and productive for
business. Blue Coat proxy appliances provide visibility and control of Web
communications to protect against risks from spyware, Web viruses,
inappropriate Web surfing, instant messaging (IM), video streaming, and
peer-to-peer (P2P) file sharing -- while actually improving Web performance.
Trusted by many of the world's largest organizations, Blue Coat has shipped
more than 25,000 proxy appliances. Blue Coat is headquartered in Sunnyvale,
California, and can be reached at 408-220-2200 or http://www.bluecoat.com.

FORWARD LOOKING STATEMENTS: The statements contained in this press
release that are not purely historical are forward-looking statements,
including statements regarding Blue Coat Systems' expectations, beliefs,
intentions or strategies regarding future performance, including the results
of other litigation and the SEC investigation. All forward-looking statements
included in this press release are based upon information available to Blue
Coat Systems as of the date hereof, and Blue Coat Systems assumes no
obligation to update any such forward-looking statements. Forward-looking
statements involve risks and uncertainties, which could cause actual results
to differ materially from those projected. These and other risks relating to
Blue Coat Systems' business are set forth in Blue Coat Systems' most recently
filed Form 10-K for the year ended April 30, 2005, and other reports filed
from time to time with the Securities and Exchange Commission.

NOTE: All trademarks, trade names or service marks used or mentioned
herein belong to their respective owners.

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