Allot Communications to Acquire Ortiva Wireless

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May 1, 2012
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Allot Communications to Acquire Ortiva Wireless

Provides Allot with innovative video optimization service offering

HOD HASHARON, Israel, May 1, 2012/PRNewswire-FirstCall/ --

    Allot Communications Ltd. (NASDAQ: ALLT), a leading provider of service optimization
and revenue generation solutions for fixed and mobile data networks worldwide, today
announced that it has signed a definitive agreement to acquire Ortiva Wireless, which
offers the industry's most innovative solution for proactive management of mobile video.

    This transaction will enable Allot to further enhance its industry-leading Allot
Service Gateway by integrating a leading-edge mobile video optimization solution into a
single network intelligence platform or offering it as a standalone solution. The
incorporation of Ortiva's technology within Allot Service Gateway will allow mobile
service providers to effectively manage the ever-increasing volume of video traffic on
their networks, which according to Allot's latest Global MobileTrends report, now
represents 42% of mobile data traffic worldwide.

    Ortiva's solution allows service providers to dramatically improve the quality and
efficiency of rich media content delivery by optimizing for real-time network conditions
and for each mobile connection. This unique dual optimization capability enables the
highest quality of experience for video consumers especially in fluctuating and
constrained network conditions. Ortiva's solution has been deployed at two Tier 1 mobile
service providers to date.

    "This acquisition is an important building block in our Service Gateway vision,"
commented Rami Hadar, Allot's President and CEO. "Since the introduction of Allot Service
Gateway in 2007, our goal has been to leverage our unique technology to enable the
broadest range of cost-saving and revenue-generating services on a single intelligent
network services platform. By purchasing Ortiva, we will own an innovative video
optimization solution, one of the major value-adds that our customers are seeking today.
As video becomes an ever-increasing challenge for mobile networks, this acquisition will
allow Allot to offer a robust and tightly integrated video optimization service within
Allot Service Gateway. We look forward to welcoming Ortiva's talented team into our
company."

    "We are excited to join the Allot team," commented Ortiva's CEO, Marc Zionts.
"Combining our unique technology with Allot's industry-leading solutions will allow us to
continue and expand our mission of enabling service providers to manage the
ever-increasing flood of data traffic while significantly improving the quality of
experience for each individual subscriber. We look forward to growing together as one
company."

    The terms of the acquisition were not disclosed. The acquisition is subject to the
satisfaction of certain closing conditions, and is expected to close during the second
quarter of 2012. On a non-GAAP basis, management currently anticipates the following:

   
    - The acquisition will be accretive on a quarterly basis by the end of 2012;
    - Ortiva will contribute between $3-5 million in revenues for the second half of
      2012, with a gross margin profile similar to Allot's current level;
    - Operating expenses are currently estimated at approximately $2.5 million per
      quarter for the second half of 2012.

    Non-GAAP financial measures exclude stock-based compensation expenses and amortization
of acquired intangible assets, and add back the fair value of acquired deferred revenue
written-off for GAAP purposes as part of purchase accounting.

    About Allot

    Allot Communications Ltd. (NASDAQ: ALLT) is a leading provider of intelligent data
traffic optimization and monetization solutions for fixed and mobile broadband operators
and large enterprises worldwide. Allot's scalable, carrier-grade solutions provide the
visibility, topology awareness, security, application control and subscriber management
that are vital to managing fixed and mobile data, enhancing user experience, containing
operating costs, and enabling service providers to generate revenues from their broadband
networks. Allot's rich portfolio of solutions leverages dynamic actionable recognition
technology (DART) to transform broadband pipes into smart networks that can rapidly and
efficiently deploy value added Internet services. For more information, please visit
http://www.allot.com.

    Safe Harbor Statement

    Information provided in this press release may contain statements relating to current
expectations, estimates, forecasts and projections about future events that are
"forward-looking statements" as defined in the Private Securities Litigation Reform Act of
1995. These forward-looking statements generally relate to the company's plans, objectives
and expectations for future operations, including without limitation the company's
integration vision and expected revenues and operating expenses in connection with the
acquisition described in this press release. These forward-looking statements are based
upon management's current estimates and projections of future results or trends. Actual
future results may differ materially from those projected as a result of certain risks and
uncertainties. These factors include, but are not limited to: the integration of Ortiva
Wireless technology, business, and operations with those of the company, increased demand
for video optimization solutions in mobile networks, changes in general economic and
business conditions and, specifically, a decline in demand for the company's products; the
company's inability to develop and introduce new technologies, products and applications;
loss of market; and other factors are discussed under the heading "Risk Factors" in the
company's annual report on Form 20-F filed with the Securities and Exchange Commission.
These forward-looking statements are made only as of the date hereof, and the company
undertakes no obligation to update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.

   
    Investor Relations Contact:
    Jay Kalish
    Executive Director Investor Relations
    International access code +972-54-221-1365
    jkalish@allot.com

   
    Marketing Communications
    Jonathon Gordon
    Director of Marketing
    International access code + 972-9-762-8423
    International access code + 972-54-223-3589
    jgordon@allot.com

Source: Allot Communications Ltd.

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