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1 Investr Relatins Cntact: Public Relatins Cntact: Randi Paikff Feigin Kathy Durr Tel: Tel: Juniper Netwrks, Inc. Reprts Q405 and Year End 2005 Financial Results: 2005 Net Revenue up 54% t $2.06B; 2005 GAAP EPS up 136% t $0.59 ; and 2005 Nn- GAAP EPS up 64% t $0.72, frm 2004 SUNNYVALE, CA January 25, Juniper Netwrks, Inc. (NASDAQ: JNPR) tday reprted its results fr the furth quarter and year ended Net revenues fr the furth quarter f 2005 were $575.5 millin, cmpared with $430.1 millin fr the furth quarter f 2004, an increase f 34 percent. Net incme n a generally accepted accunting principles (GAAP) basis fr the furth quarter f 2005 was $105.5 millin r $0.17 per share, cmpared with a GAAP net incme f $66.0 millin r $0.11 per share fr the furth quarter f Nn-GAAP net incme was $119.6 millin r $0.20 per share, cmpared with nn-gaap net incme f $85.9 millin r $0.15 per share fr the furth quarter f A recnciliatin between nn-gaap and GAAP net incme is prvided in a table immediately fllwing the Nn-GAAP Cndensed Cnslidated Statements f Operatins. Net revenues fr fiscal 2005 were $2,064.0 millin, cmpared with $1,336.0 millin fr fiscal 2004, an increase f 54 percent. GAAP net incme fr fiscal 2005 was $354.0 millin r $0.59 per share, cmpared t $135.7 millin r $0.25 per share fr fiscal Nn-GAAP net incme fr fiscal 2005 was $430.6 millin r $0.72 per share, cmpared t $238.6 millin r $0.44 per share, fr fiscal A recnciliatin between nn- GAAP and GAAP net incme is prvided in a table immediately fllwing the Nn-GAAP Cndensed Cnslidated Statements f Operatins. Cash prvided by peratins fr the furth quarter f 2005 was $197.5 millin, cmpared t cash prvided by peratins f $142.5 millin fr the furth quarter f Cash prvided by peratins fr fiscal 2005 was $642.9 millin, up frm $439.4 millin fr Capital expenditures and depreciatin during the furth quarter f 2005 were $39.3 millin and $15.4 millin, respectively. I m pleased t reprt anther strng quarter and the cmpletin f a year characterized by grwth acrss multiple dimensins, cmmented Sctt Kriens, chairman and CEO, Juniper Netwrks. Juniper remains at the intersectin f pprtunity, where the increasing and strategic imprtance f tday s netwrk demands the integrated best-in-class slutins that the cmpany was built t deliver. As we surpass annual revenues f $2 billin n the eve f ur 10 th anniversary we see a bright future, funded in the cnfidence ur custmers have placed in Juniper. Juniper cntinued t invest in and deliver innvatin thrughut 2005 with significant new prduct and feature annuncements this year, all fcused n serving the evlving needs f its custmers.

2 Highlights include new prducts and features t strengthen supprt fr the cst-effective deplyment f assured Triple Play services, such as IPTV, ver a cnverged netwrk infrastructure. These include the E320 Bradband Services Ruter, the industry s highest capacity bradband ruter and new features such as Dynamic Bandwidth Allcatin fr the E320, and SDX Netwrk Resurce Manger fr the E-, M- and T-series ruters. Juniper remained at the frefrnt f perfrmance delivery with the intrductin f the new OC-768c interface mdule fr the T-series, the fastest ptical interface available tday. Juniper cntinued t innvate in the security arena with the intrductin f its Unified Access Cntrl slutin, incrprating the Infranet Cntrller appliance and Infranet Agent. Numerus industry partners viced their supprt fr the mst cmprehensive access cntrl slutin n the market that allws custmers t leverage existing infrastructure. The slutin uses a cmbinatin f identitybased plicy and endpint intelligence t give enterprises real-time visibility and plicy cntrl thrughut the netwrk. The cmpany als annunced the availability f the ISG 1000 and 2000 with Intrusin Detectin and Preventin, which integrates best-in-class security fr cmprehensive delivery and threat cntrl. The cmpany witnessed significant mmentum fr the prduct with custmers such as AvantG, a mbile Internet service f ianywhere; PrBusiness, a divisin f ADP Natinal Accunt Services and Yakult, ne f the largest fd distributrs in Krea. Additinally, Juniper cntinued its SSL VPN leadership with intrductins f 4 new hardware platfrms, the SA 700, 2000, 4000 and 6000 appliances that prvide enterprises with enhanced delivery and threat cntrl with high perfrmance. The result f this innvatin is the cntinued market share mmentum Juniper enjyed thrughut Juniper is psitined in the leaders quadrant f Gartner Grup s Magic Quadrant fr all f the security segments in which it cmpetes, including Firewall, IPSec VPN, SSL VPN and IPS. In additin, Juniper earned the number tw slt in the High End Enterprise Ruter market with mre than 25 per cent share accrding t Synergy Research Grup. Juniper als retained its nearly ne third market share and its number tw psitin in the verall Service Prvider Ruting market with mre than 30 per cent share in the Cre, Edge & Bradband subcategries. Juniper Netwrks will hst a cnference call web cast tday, January 25, 2006 at 1:45 p.m. (Pacific Time), t be bradcasted live ver the Internet The cnference call will be archived n the Juniper Netwrks website until February 25, A replay will be accessible by telephne n January 25th after 3:00 p.m. Pacific Time thrugh February 2nd, 2006 by dialing (r ), reservatin number, The replays will be available 24 hurs/day, including weekends. Abut Juniper Netwrks, Inc. Juniper Netwrks is the leader in enabling secure and assured cmmunicatins ver a single IP netwrk. The cmpany s purpse-built, high perfrmance IP platfrms enable custmers t supprt many different services and applicatins at scale. Service prviders, enterprises, gvernments and research and educatin institutins wrldwide rely n Juniper Netwrks t deliver prducts fr building netwrks that are tailred t the specific needs f their users, services and applicatins. Juniper Netwrks' prtfli f prven netwrking and security slutins supprts the cmplex scale, security and perfrmance requirements f the wrld s mst demanding netwrks. Additinal infrmatin can be fund at Juniper Netwrks, the Juniper Netwrks lg, NetScreen, NetScreen Technlgies, the NetScreen lg, NetScreen- Glbal Pr, ScreenOS, and GigaScreen are registered trademarks f Juniper Netwrks, Inc. in the United States and ther cuntries. Statements in this release cncerning Juniper Netwrks' business utlk, future financial and perating results, and verall future prspects are frward lking statements that invlve a number f uncertainties and risks. Actual results culd differ 2

3 materially frm thse anticipated in thse frward-lking statements as a result f certain factrs, including: general ecnmic cnditins glbally r reginally; business and ecnmic cnditins in the netwrking industry; changes in verall technlgy spending; the netwrk capacity requirements f cmmunicatin service prviders; increases in cmpetitin; the timing f rders and their fulfillment; availability and cst f key parts and supplies; ability t establish and maintain relatinships with distributrs and resellers; variatins in the expected mix f prducts sld; changes in custmer mix; custmer and industry analyst perceptins f Juniper Netwrks and its technlgy, prducts and future prspects; delays in scheduled prduct availability; market acceptance f ur prducts and services; rapid technlgical and market change; adptin f regulatins r standards affecting ur prducts, services r industry; the ability t successfully acquire, integrate and manage businesses and technlgies; prduct defects, returns r vulnerabilities; the ability t recruit and retain key persnnel; currency fluctuatins; litigatin; and ther factrs listed in ur mst recent reprt n Frm 10-Q filed with the Securities and Exchange Cmmissin. All statements made in this press release are made nly as f the date set frth at the beginning f this release. Juniper Netwrks undertakes n bligatin t update the infrmatin in this release in the event facts r circumstances subsequently change after the date f this press release. This release includes nn-gaap net incme, nn-gaap net incme per share data and ther nn-gaap line items frm the Cnslidated Statements f Operatins, including perating expenses, ther incme and expenses, incme befre incme taxes, prvisin fr incme taxes and net incme. These measures are nt in accrdance with, r an alternative fr, generally accepted accunting principles and may be different frm nn-gaap measures used by ther cmpanies. Juniper Netwrks believes that the presentatin f these nn-gaap measures, when shwn in cnjunctin with the crrespnding GAAP measures, prvides useful infrmatin t management and investrs regarding financial and business trends relating t its financial cnditin and results f peratins. Juniper Netwrks further believes that where the adjustments used in calculating nn-gaap net incme and nn-gaap net incme per share are based n specific, identified charges that impact different line items in the statements f peratins (including cst f revenues, research and develpment, sales and marketing, and general and administrative expense), that it is useful t investrs t knw hw these specific line items in the statements f peratins are affected by these adjustments. Fr its internal budgets, Juniper Netwrks management uses financial statements that d nt include amrtizatin f purchased intangible assets; in-prcess research and develpment; restructuring, impairment and related charges; integratin csts; patent crss licensing expense; gain (lss) n investments; and the incme tax effects f the freging, as applicable. Juniper Netwrks management als uses the freging nn-gaap measures, in additin t the crrespnding GAAP measures, in determining bjectives fr cmpensatin prgrams r reviewing the financial results f Juniper Netwrks. 3

4 Cndensed Cnslidated Statements f Operatins (in thusands, except per share amunts) Three Mnths Ended Net revenues: Prduct $ 488,549 $ 379,834 $1,770,988 $1,162,928 Service 86,915 50, , ,091 Ttal net revenues 575, ,053 2,063,957 1,336,019 Cst f revenues: Prduct 139, , , ,466 Service 42,086 27, ,754 92,958 Ttal cst f revenues 181, , , ,424 Grss margin 393, ,626 1,411, ,595 Operating expenses: Research and develpment 99,276 73, , ,856 Sales and marketing 126, , , ,030 General and administrative 16,291 14,982 74,756 55,188 Amrtizatin f purchased intangibles 23,733 18,447 85,174 56,782 In-prcess research and develpment 5,300 11,000 27,500 Restructuring, impairments and special charges, net 6,170 (582) (5,058) Integratin csts 5,087 Ttal perating expenses 277, , , ,385 Operating incme 116,432 90, , ,210 Interest and ther incme 19,082 11,526 59,144 28,233 Interest and ther expense (1,199) (412) (3,925) (5,379) Gain (lss) n investments (448) 1,250 (2,939) Lss n redemptin f cnvertible subrdinated ntes (4,107) Incme befre incme taxes 133, , , ,018 Prvisin fr incme taxes 28,337 35, ,170 83,272 Net incme $ 105,530 $ 66,001 $ 354,029 $ 135,746 Net incme per share: Basic $ 0.19 $ 0.12 $ 0.64 $ 0.28 Diluted $ 0.17 $ 0.11 $ 0.59 $ 0.25 Shares used in cmputing net incme per share: Basic 565, , , ,073 Diluted 606, , , ,625 Certain prir perid amunts have been reclassified t cnfrm t the current perid presentatin. The reclassificatins pertain t amrtizatin f deferred stck cmpensatin which had previusly been reprted as separate line item t the fllwing cst and expense categries by perid: Three Mnths Ended (In millins) Cst f revenues Prduct $ 312 $ 676 $ 848 $ 2,850 Cst f revenues Service 234 1,118 Research and develpment 1,623 5,217 9,894 21,493 Sales and marketing 1,413 3,800 4,761 17,685 General and administrative ,016 1,927 Ttal $ 3,796 $ 10,076 $ 17,637 $ 43,955 4

5 Nn-GAAP Cndensed Cnslidated Statements f Operatins (in thusands, except per share amunts) Three Mnths Ended Net revenues: Prduct $ 488,549 $ 379,834 $1,770,988 $1,162,928 Service 86,915 50, , ,091 Ttal net revenues 575, ,053 2,063,957 1,336,019 Cst f revenues: Prduct 139,546 99, , ,616 Service 41,852 27, ,636 92,958 Ttal cst f revenues 181, , , ,574 Grss margin 394, ,302 1,413, ,445 Operating expenses: Research and develpment 97,653 68, , ,363 Sales and marketing 124, , , ,345 General and administrative 16,077 14,599 63,900 53,261 Ttal perating expenses 238, , , ,969 Operating incme 155, , , ,476 Interest and ther incme 19,082 8,024 59,144 24,731 Interest and ther expense (1,199) (412) (3,925) (5,379) Incme befre incme taxes 173, , , ,828 Prvisin fr incme taxes 53,727 40, , ,265 Net incme $ 119,587 $ 85,925 $ 430,573 $ 238,563 Net incme per share: Basic $ 0.21 $ 0.16 $ 0.78 $ 0.48 Diluted $ 0.20 $ 0.15 $ 0.72 $ 0.44 Shares used in cmputing net incme per share: Basic 565, , , ,073 Diluted 606, , , ,625 5

6 Recnciliatin between GAAP t nn-gaap Net Incme (in thusands) Three Mnths Ended Nn-GAAP net incme $ 119,587 $ 85,925 $ 430,573 $ 238,563 Amrtizatin f purchased intangibles (23,733) (18,447) (85,174) (56,782) Cmpensatin expense related t acquisitins (4,123) (10,076) (17,804) (43,955) In-prcess research and develpment (5,300) (11,000) (27,500) Restructuring, impairments and related csts (5,843) 909 5,058 Patent crss-licensing expense (10,000) Integratin csts (5,087) Gain frm nn-recurring engineering cntract 3,502 3,502 Gain (lss) n investments (448) 1,250 (2,939) Lss n redemptin f cnvertible subrdinated ntes (4,107) Incme tax effect 25,390 5,097 45,275 28,993 Net incme $ 105,530 $ 66,001 $ 354,029 $ 135,746 Certain reclassificatins have been made t the prir perid amunts t cnfrm t the current perid presentatin. Juniper Netwrks, Inc. Net Prduct Revenue by Operating Segment (in thusands) Three Mnths Ended Infrastructure $ 376,039 $ 299,863 $1,367,811 $ 975,729 Service Layer Technlgies 112,510 79, , ,199 Ttal $ 488,549 $ 379,834 $1,770,988 $1,162,928 6

7 Cndensed Cnslidated Balance Sheets (in thusands) ASSETS Current assets: Cash and cash equivalents $ 918,401 $ 713,182 Shrt-term investments 510, ,659 Accunts receivable, net f allwance fr dubtful f accunts 268, ,306 Prepaid expenses and ther current assets 120, ,586 Ttal current assets 1,818,456 1,413,733 Prperty and equipment, net 319, ,612 Lng-term investments 618, ,234 Restricted cash 66,074 31,226 Gdwill 4,904,239 4,427,930 Purchased intangible assets, net 269, ,879 Other assets 29,682 14,100 Ttal assets $ 8,026,599 $ 6,999,714 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accunts payable $ 165,172 $ 113,890 Deferred revenue 213, ,750 Accrued liabilities 248, ,197 Ttal current liabilities 627, ,837 Deferred revenue, net f current prtin 39,330 22,700 Cnvertible senir ntes and ther lng-term liabilities 460, ,440 Cmmitments and cntingencies Stckhlders equity: Cmmn stck and additinal paid-in capital 6,431,960 5,888,220 Deferred stck cmpensatin (15,582) (32,394) Accumulated ther cmprehensive lss (8,324) (716) Retained earnings 491, ,627 Ttal stckhlders equity 6,899,710 5,992,737 Ttal liabilities and stckhlders equity $ 8,026,599 $ 6,999,714 Juniper Netwrks, Inc. Cash and Cash Equivalents and Investments (in thusands) Cash and cash equivalents $ 918,401 $ 713,182 Shrt-term investments 510, ,659 Lng-term investments 618, ,234 Ttal Cash and cash equivalents and Investments $ 2,047,107 $ 1,713,075 7

8 Cndensed Cnslidated Statements f Cash Flws (in thusands) OPERATING ACTIVITIES: Net incme $ 354,029 $ 135,746 Adjustments t recncile net incme t net cash frm perating activities: Depreciatin and amrtizatin 138,904 97,625 Stck based cmpensatin 17,637 43,955 In-prcess research and develpment 11,000 27,500 Lss n redemptin f cnvertible subrdinated ntes 4,107 Lss (gain) n sale r write-dwn f investments (364) 2,939 Restructuring, impairment, and related charges 6, Nn-cash prtin f debt issuance csts and dispsal f prperty, plant and equipment 1,735 4,094 Tax benefit f emplyee stck ptin plans 129,492 65,988 Changes in perating assets and liabilities: Accunts receivable, net (68,053) (81,398) Prepaid expenses and ther assets (26,201) (56,253) Accunts payable 50,310 29,390 Accrued liabilities (35,996) 71,786 Deferred revenue 64,280 93,648 Net cash prvided by perating activities 642, ,448 INVESTING ACTIVITIES: Purchases f prperty and equipment, net (98,192) (63,185) Purchases f available-fr-sale investments (936,031) (739,437) Maturities and sales f available-fr-sale investments 805, ,740 Increase in restricted cash (34,848) (249) Minrity equity investments (9,823) (1,225) Acquisitins f businesses, net f cash and cash equivalents acquired (309,889) 40,889 Net cash used in investing activities (583,736) (58,467) FINANCING ACTIVITIES: Prceeds frm issuance f cmmn stck 146, ,172 Redemptin f cnvertible subrdinated ntes (144,967) Retirement f cmmn stck (63,610) Net cash prvided by (used in) financing activities 146,012 (33,405) Net increase in cash and cash equivalents 205, ,576 Cash and cash equivalents at beginning f perid 713, ,606 Cash and cash equivalents at end f perid $ 918,401 $ 713,182 8