The Company remains optimistic about achieving the aggressive targets it has

set for the coming fiscal year.

Revenue for the fourth quarter of fiscal 2001 was $21.5 million, compared

to revenue of $23.9 million for the same period last year. Pro forma net

income for the three months ended March 31, 2001 was $673,000, or $0.02 per

pro forma diluted share, compared to $4.6 million, or $0.16 per pro forma

diluted share, for the same period last year. Pro forma net income excludes

non-cash amortization of goodwill and other intangible assets and stock-based

compensation. Weighted average pro forma diluted shares for the three-month

period ended March 31, 2001 were 30.0 million, compared to 28.1 million for

the same period in fiscal 2000.

On a GAAP basis, the net loss for the quarter was ($2.5) million, or

($0.09) per basic and diluted share, compared to net income of $4.5 million,

or $0.16 per diluted share for the same period last year.

For the year ended March 31, 2001, NetScout reported revenue of $108.0

million, a 25 percent increase from $86.2 million for the year ended March 31,

2000. Pro forma net income for the year ended March 31, 2001 was $13.7

million, or $0.46 per pro forma diluted share, compared to pro forma net

income of $15.7 million, or $0.58 per pro forma diluted share, for the

comparable period one year earlier. Weighted average pro forma diluted shares

for the year ended March 31, 2001 were 29.7 million, compared to 26.9 million

for the same period in fiscal 2000.

On a GAAP basis, net income for the year was $3.7 million, or $0.12 per

diluted share, compared to net income of $15.2 million, or $0.56 per diluted

share in fiscal 2000.

Revenue for the fourth quarter was heavily impacted by spending delays

across most of our customer segments, said Anil Singhal, President and CEO of

NetScout Systems. New opportunities and evaluations progressed normally, but

many of our customers suspended or delayed IT purchases abruptly while they

reevaluated their overall capital spending programs.

He added, This was still a very successful year at NetScout. We met or

exceeded most of the goals we had set for the company at the beginning of the

fiscal year.

SOURCE: COMPANY PRESS RELEASE