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TO: Our Customers and Partners Limelight Networks was founded with the philosophy that a strong relationship with each of our customers was the key to building a great business. Since we opened our doors over seven years ago, we have been committed to creating partnerships through passionate customer service, and direct, open communication. In the coming weeks, you may hear rumors about our business in the media, which may cause you to have questions. We understand how critical it is for us to be as transparent as we can throughout this process, and we want to remind you that, as always, we are available to address your concerns face-to-face. We may not be able to immediately answer every question because of the legal proceedings, but we will certainly provide as much information as we can. Over the past few days no doubt you have heard much speculation about the current phase of our ongoing litigation with Akamai, and we wanted to directly address three key points with you. Again, should you have additional questions, please call your Limelight Networks relationship manager. First, as we stated in our press release, we are very disappointed with the jury's verdict, and we strongly believe that, like other companies that follow long-established Internet standards, we do not infringe the patent in this case. We plan to pursue all appropriate legal avenues, and will vigorously defend our right to compete, innovate, and provide choice to the CDN marketplace. Even though a verdict has been announced, there are several post-trial matters pending before the trial court before this first phase of the litigation is concluded. Resolution of these remaining issues in this phase may take some time to play out. We have not begun an appeal because the appeal process does not begin until all the post-trial issues in the first phase of the litigation have been concluded. Second, we understand how important competition is in the CDN marketplace. We have no plans to discontinue operations. We are financially strong with approximately $197 million of cash and marketable securities on our balance sheet as of the end of 2007, and no material debt. Further, we are actively exploring alternatives that would enable us to continue to provide the same level of service that we always have and eliminate any issue of infringement, if such is determined with finality by the courts. Additionally, there are many aspects of our business that were either not accused of infringing or we believe are clearly outside the scope of what was litigated. Finally, our commitment to customers and partners is stronger than ever. It is your belief in our philosophy of doing business that helped us build this great platform and keeps us focused during this time. We are proud that over 1300 leading media, entertainment, software, Web 2.0, technology, and enterprise brands around the world trust us to enable brilliant online experiences for their end users. Our customers' passion for innovative Internet business models and new interactive digital media programs and services inspire us every day. Many of our customers were small startups when we began working with them, and we are honored to have stood side-by-side as these fledgling businesses have become web standards. Over the past few days we have received many unsolicited calls from customers, partners and others expressing their support and confidence in us. Each of us is very grateful by this outpouring of support. We will not allow rumor or speculation to shift our focus away from doing what we do best - serving our customers and helping you deliver brilliance. Your Limelight Networks relationship manager is always available to answer any questions you may have - do not hesitate to call. Sincerely, Limelight Networks, Inc. |
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