ARUN Notes:

Annual Report (year end 7/31) – filed 10/12/07

• Product lines offered:

  • Aruba OS Modular Operating System – optional value added modules

  • Centralized mobility management system

  • High performance programmable mobility controllers

  • Wired and wireless access points

  • Wireless intrusion detection tools

  • Spectrum analyzers

  • Endpoint compliance solutions

• Acquisition of wireless security product from Network Chemistry (July 20, 2007)

• Extending enterprise network beyond physical office space presents security challenges

• Difficulty in limiting costs when adapting to increasing needs for off-site functionality

• Necessary to support emerging mobile applications

• Goal is to push services beyond customers headquarters – to all access points users employ

• Sell products and support directly through sales force and indirectly through value added resellers

  • Sell products in US, EMEA and APAC (Asia Pacific) regions

• Outsource manufacturing of hardware to Flextronics which is more efficient.

• March IPO yielded proceeds of 91.8m for general corporate purposes

• 33.4% of revenues were from outside US compared to 26.7% in 2006

• Company currently has no debt

Q1 earnings release (Quarter end Oct 31) – released 11/20/07

• Revenues 46.7% up 91% Y/Y and up 12% sequentially

• Loss of $0.01 EPS versus 0.34 loss last year – ex non-cash stock expense EPS comes in at 0.04

• First quarter demand continued to be strong across wide range of vertical markets including Education, Enterprise, Government and Healthcare

  • No single vertical accounts for more than 20% of revenue.

• Strong momentum in October has carried into first part of next quarter

• New customer acquisition strong with now over 3,300 customers

• Introduced suite of high performance 802.11n products

• Independent report finds ARUN’s market share of enterprise wireless LAN market now > 10% - displaced Motorola as second largest enterprise wireless LAN supplier

Jefferies Note 11/29/07

• Shares under pressure after Trinity Ventures (one of three VC holders) filed to distribute 1m shares to limited partners

  • Trinity holds 7.9m shares (9% of outstanding shares)

  • Matrix Partners has also been distributing ARUN holdings

• VC’s still hold 32.7m or 42% of shares (was 51% before lockup)

Lehman report 12/7/07

• Management believes 2008 will see significant adoption of 802.11n standard

• OEM relationship with Alcatel-Lucent is attractive to CIO’s who are evaluating ARUN solutions

• Key customers include US Airforce, MSFT, SAP, Google, EBAY, Ohio State University etc.

• Traction in government and hospitality verticals in Asia

WR Hambrecht 12/6/07

• Expect 56% revenue growth in CY 2008 and 50% in CY 2009 – would mean capturing 19-20% WLAN market by 2009

• Earnings could triple from CY07 to -08 and double to 09