With new support for Smooth Streaming from Microsoft, Limelight Networks once again allows customers to choose from the world’s leading platforms for streaming online media. Smooth Streaming is an advanced delivery concept that uses industry-standard HTTP and enables adaptive bit rate media distribution to Silverlight players. Content can be offloaded to Limelight’s robust storage architecture — or hosted on the customer’s origin using Microsoft’s Internet Information Server (IIS) 7.

Delivering the best experience

Adaptive bit rate delivery gets your audience off to a fast start, because seek and startup can be initiated at the lowest-possible bit rate. Once the user hits Play, Smooth Streaming seamlessly adapts delivery to a higher bit rate, depending on network conditions and CPU capabilities. It continues to switch video quality in real time as available bandwidth shifts. So your audience enjoys a consistent, smooth playback experience — no stutters and no disconnects.

Skipping forward and back within the media file is also fast. Unlike traditional HTTP delivery, users can jump to any part of the video they want to see (or see again). And since HTTP is highly cacheable, Smooth Streaming leverages Limelight’s advanced infrastructure to keep your content moving at lightning speeds — and steering clear of the busy (and unpredictable) public Internet.

Extending your reach

Now you can reach your customers, whether they’re at home or at the office. HTTP-based Smooth Streaming enables delivery over Port 80 into network environments that block access to traditional streaming protocols, such as RTMP.

Gearing up for Smooth Streaming

To get started with Smooth Streaming, you’ll need the full version of Microsoft’s Expression Encoder 2 Service Pack 1 (SP1). (Support for Smooth Streaming encoding is not included in the Express trial version.) Smooth Streaming requires the same source content be encoded at several quality levels, each as its own separate file. To help you choose the appropriate bit rates for encoding, try this handy Smooth Streaming Multi Bit Rate Calculator.

Don’t have a Silverlight player? Limelight Networks provides Smooth Streaming customers with free code. Choose from Expression Encoder 2 SP1 templates or the Open Video Player (OVP), Silverlight version.

Faster, smarter, better

For the fastest and most consistent performance, combine Smooth Streaming with Limelight’s next-generation XD Platform. XD adds a layer of intelligence to our time-tested global network to streamline and accelerate the entire delivery path. Learn more about the XD Platform.

TOKYO, JAPAN – 10 February 2010 - Limelight Networks, Inc. (NASDAQ: LLNW) today announced that Avex Broadcasting & Communications Inc. has selected LimelightSTREAM to power its mobile TV service, BeeTV. As a content delivery network (CDN) partner, Limelight Networks enables Avex to reduce stress on its infrastructure system while also providing BeeTV subscribers with a smoother streaming experience on the go.

The BeeTV service takes advantage of Limelight Networks’ robust, global network to ensure faster, more reliable streaming for consumers. With direct connections to more than 900 access networks, the Limelight CDN extends the reach of the mobile TV service and speeds up delivery to the BeeTV audience.

Since May 2009, Avex has provided its content via the Limelight CDN to support widespread and enhanced distribution in a highly secure environment. This partnership between Limelight Networks and BeeTV showcases the comprehensive streaming capabilities of the LimelightSTREAM product, and its ability to support audiences of any size, anywhere in the world.

• Offers business customers, access to Limelight Networks 25 Delivery Centres and 900 last mile networks across the globe
• Initiative to enhance Internet user experience in the Indian marketplace.
• End users can now look forward to an uninterrupted internet experience, be it a HD movie, online purchases, music, video games or downloading software

New Delhi, January 2010 - Bharti Airtel, Asia’s largest integrated telecom provider today announced a strategic partnership with Limelight Networks® for Content Delivery Network (CDN) services in the Indian market place. The partnership will help Limelight Networks® to expand its access in one of the fastest growing CDN markets and enable its customers, access to Bharti Airtel’s state-of-the-art IP network in India. With this agreement, Bharti Airtel will now be able to offer Indian content producers, industry leading solutions for the delivery of rich media and enterprise applications, as well as direct access to consumers accessing the Internet, over 900 last mile networks that are directly connected to Limelight Networks’ global platform.

The CDN will offer business customers access to Limelight Networks 25 Delivery centres, strategically placed in key networking hubs around the globe. This will enable the combine to offer their customers, the ability to create a high-quality experience for their end-users – without service interruption, whether they’re watching an HD movie, making an online purchase, listening to music, playing a video game, or downloading a software package.

According to Rajan Swaroop Executive Director Enterprise Services, Bharti Airtel, “We are delighted to be able to bring in Limelight Networks’ globally acclaimed services for the Indian market place. The initiative is consistent with our strategy of furthering innovation through industry leading partnerships. All our investments in setting up an international network infrastructure and growing portfolio of services are designed to make Bharti Airtel the communication services partner of choice for global markets. The partnership will help expand our market coverage in the rapidly growing Indian CDN market that is expected to grow to US$ 100 million by 2014.”

According to George Fraser, Vice President, EMEA and Asia, Limelight Networks, “This exclusive, strategic partnership brings together Airtel’s market-leading IP network and deep relationships within the Indian marketplace with our proven content delivery technology and expertise. The Asian CDN market is growing at a rate of 32% y-o-y and this partnership will help Limelight Networks lead the growth in one of the fastest growing emerging markets and partner world class telcos in delivering best in class services.”

Bharti Airtel CDN delivers an unparalleled experience with all forms of content including High Definition (HD), regardless of the volume of Internet traffic. The partnership will enable business customers to offer significantly faster content delivery to all Internet users without increasing their infrastructure costs. As well as utilizing Limelight Networks’ proprietary technology, the Bharti Airtel CDN offers innovative device-detection, mobility and adaptive-streaming technology enabling customers to create a seamless experience for end users regardless of what device they are using.

About Bharti Airtel
Bharti Airtel Limited, a group company of Bharti Enterprises, is among Asia’s leading integrated telecom services providers with operations in India, Sri Lanka and Bangladesh. In India, the company had an aggregate of over 120 million customers as of end December 2009, including 118.86 million mobile customers. Bharti Airtel has been ranked among the six best performing technology companies in the world by BusinessWeek.
Bharti Airtel is structured as four strategic business units - Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India and Sri Lanka. The Telemedia business provides broadband, IPTV and telephone services in 95 Indian cities. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to carriers. The Digital TV business provides Direct-to-Home TV services across India. All these services are provided under the Airtel brand. Airtel’s national high-speed optic fibre network currently spans over 113,326 Rkms covering all the major cities in India. The company has two international landing stations in Chennai and Mumbai that connect two submarine cable systems - i2i to Singapore and SEA-ME-WE-4 to Europe. For more information, visit www.airtel.in

“Today, two best-in-class companies are combining to capitalize on the clear opportunity created by a macro shift of content consumption and advertising spend away from legacy channels and towards the growing world of Internet-connected devices. Limelight and EyeWonder bring together deep technical and operational skills for creating a brilliant online experience anywhere, on any device, and the ability to help advertisers and publishers monetize that experience,” said Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc. “We believe joining forces with the EyeWonder team will help us build long-term value for our shareholders and further establish Limelight Networks as an important, at-scale participant in the rapidly growing rich media, video, mobile, and web TV advertising sectors.”

Since 1999, EyeWonder has been an innovator in developing monetization solutions that helps Forbes 2000 advertisers, interactive agencies and content publishers create, build, track and optimize rich media and interactive video advertising campaigns. EyeWonder’s advertising serving platform is projected to service over $500 million in media spend globally in 2009, helping stakeholders across the digital advertising ecosystem to realize increased return-on-investment from that spend.

The combination of EyeWonder’s value-added monetization solutions and Limelight Networks’ delivery, storage, management and consulting services will enable enterprises, agencies and content publishers to unlock the value of their online content and maximize the revenue and profitability of their online strategies. The combined company will have relationships with over 2500 online businesses, over 800 interactive agencies, 900 last-mile access networks and over 20 ecosystem partners who, together, will working toward building a more efficient and intelligent Internet.

“Today’s announcement represents the next step in the growth and success of online advertising and in realizing the vision EyeWonder was founded with ten years ago. Limelight Networks and EyeWonder have worked together as partners for years, and have shared a passion for helping publishers of all types better monetize their content. By combining and integrating each company’s distinctive areas of expertise, we will create unique and independent service offerings that will deliver exceptional value to our clients and partners,” said John Vincent, founder and chief executive officer, EyeWonder, Inc.

The consideration to be paid to EyeWonder’s shareholders at Closing will equal approximately $110 million, comprised of approximately $62 million in cash (subject to adjustment based on EyeWonder’s financial condition at Closing) and approximately 12.74 million shares of Limelight common stock. Up to approximately 4.86 million additional shares of Limelight common stock will be issuable in 2011 if EyeWonder achieves certain financial results in 2010. EyeWonder was advised on the transaction by Madison Alley Global Ventures.

Certain key employees of EyeWonder will also enter into employment arrangements with Limelight that will involve additional equity compensation. The closing of the transaction is subject to customary closing conditions, including the effectiveness of a registration statement to be filed with the Securities and Exchange Commission relating to the transaction, and approval of Limelight Networks and EyeWonder’s respective stockholders at stockholder meetings following distribution of a definitive joint proxy statement.

Conference Call
At approximately 8:00 a.m. ET (5:00 a.m. PT) today, executives from both companies will host a conference call for investors to discuss this transaction. North American participants can access this call by dialing +1-800-920-4315. Participants outside of North America can dial +1-212-231-2902. A replay of the call will be available from http://www.llnw.com for one week following the conclusion of the event.

Additional Information and Where to Find It
Limelight Networks plans to file with the SEC a Registration Statement on Form S-4 in connection with the transaction and plans to file with the SEC and mail to its stockholders a Proxy Statement/Prospectus in connection with the transaction. The Registration Statement and the Proxy Statement/Prospectus will contain important information about Limelight Networks, EyeWonder, the transaction and related matters. Investors and security holders are urged to read the Registration Statement and the Proxy Statement/Prospectus carefully when they are available. Investors and security holders will be able to obtain free copies of the Registration Statement and the Proxy Statement/Prospectus and other documents filed with the SEC by Limelight through the web site maintained by the SEC at www.sec.gov and by contacting Limelight Networks Investor Relations at 917-297-4241. In addition, investors and security holders will be able to obtain free copies of the documents filed with the SEC on Limelight Networks’ website at www.limelightnetworks.com.

Participants in the Acquisition of EyeWonder
Limelight Networks, EyeWonder and their respective directors, executive officers and certain other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding these persons who may, under the rules of the SEC, be considered participants in the solicitation of Limelight Networks stockholders in connection with the proposed transaction will be set forth in the Proxy Statement/Prospectus described above when it is filed with the SEC. Additional information regarding Limelight Networks’ executive officers and directors is included in Limelight Networks’ definitive proxy statement, which was filed with the SEC on April 27, 2009. You can obtain free copies of these documents from Limelight Networks using the contact information above.

About EyeWonder, Inc.
EyeWonder, Inc. is the pioneering interactive digital advertising provider, extending the reach of online rich media and interactive video ads to digital device displays. Through its superior technology, products and services, EyeWonder empowers advertisers, advertising agencies and content publishers with the ability to create, build, deliver, track and optimize interactive advertising campaigns proven to drive industry-leading results. Headquartered in Atlanta, Georgia, U.S.A., EyeWonder, Inc. has domestic offices in New York, Chicago, San Francisco, Dallas and Los Angeles. International offices are located in the United Kingdom, Ireland, the Netherlands, Germany, Spain and Australia. For more information on the company’s interactive digital advertising solutions or its global office network, please visit http://www.eyewonder.com or follow us on Twitter www.twitter.com/_ew.

LimelightSITE is designed to accelerate whole website delivery. For The Knot, LimelightSITE provides assurances of the highest quality content delivery without the cost of upgrading internal infrastructure, particularly as The Knot looks to expand in the coming months. Prior to making the switch to Limelight Networks, the team from The Knot laid out expectations for a smooth migration with no adverse effects on site visitors. Using Limelight Networks Integration Services, The Knot was able to meet those requirements.

“Limelight Networks brings customer service to a new level,” said Nic Di Iiorio, CTO of The Knot, Inc. “During our very aggressive project to deploy their services, Limelight personnel acted as a seamless extension of our best teams. The Limelight services team was well prepared to ensure a quick and successful project which resulted in a very smooth transition with no negative impact to our Brides.”

The “Best Places to Work” list, which was started in 2003, recognizes Valley companies who empower their employees to rank their company as being a best place to work. The areas surveyed are varied parts of employee life, including workplace environment, leadership direction, culture, and management practices.

Limelight Networks was acknowledged for creating an engaging corporate culture and a supportive work environment that fosters personal and professional growth for its employees. “Every day, our employees at Limelight Networks personify our corporate values of ingenuity, authenticity, conviction and relationships. We’re pleased that they have been recognized for creating an engaging, supportive and great place to work,” said Kate Garcia, human resources director, Limelight Networks, Inc.

Winners were announced at the “Best Places to Work” Luncheon, Dec. 10 at the Arizona Biltmore Resort & Spa in Phoenix, and will be featured in the Dec. 11 edition of the Phoenix Business Journal and on an exclusive website for the Valley’s “Best Places to Work” – http://www.bestcompaniesaz.com/.

The Adify Network Builder solution delivers display, rich media, video and HTML content to quality mid-tail publishers (independent sites with between 5,000 and 1 million unique visitors per month) and their engaged audiences in vertical ad networks built by leading entrepreneurs and media companies worldwide. Under its agreement with Global Crossing, Adify, headquartered in the San Francisco Bay Area, will use Global Crossing’s LimelightDELIVERTM* solution with Secure Sockets Layer enhancements for fast, secure and reliable Hypertext Transfer Protocol (HTTP) distribution.

“Global Crossing’s Content Delivery Network is supporting the intelligent aggregation system Adify has built for advertisers, content aggregators, and individual publishers,” said Jon Prall, senior vice president of Engineering Operations at Adify. “Our customers rely upon our platform to run their businesses and Global Crossing’s underlying infrastructure support helps us deliver the unparalleled performance, effectiveness, and reach our customers expect.”

“We’re very pleased Adify has chosen our Content Delivery Network service,” said Neil Barua, Global Crossing’s managing director for North America. “By combining the advantages of our industry-leading Global IP backbone with market-leading CDN services, we’re simplifying content delivery through an end-to-end solution.”

Global Crossing’s CDN strategy enhances the significant cost and performance benefits of its IP data offerings and builds upon its commitment to provide a full suite of services that allow multi-national corporations to focus on their core businesses.

Earlier this year, Global Crossing announced it was entering the CDN market by partnering with two leading CDN providers, Limelight Networks, Inc. (NASDAQ: LLNW), and EdgeCast Networks. These two strategic partnerships allow Global Crossing to offer its enterprise customers around the world rich media content delivery, such as high-definition movies, music, video games and software download online.

Jointly providing CDN services with multiple vendors gives Global Crossing’s customers one point of contact for their network and content delivery needs, and enables the company and its partners to drive best-in-class solutions into the marketplace. Together with its CDN partners, Global Crossing will offer customers the ability to create a high-quality experience for their end users without service interruption.

This approach promises to improve customer satisfaction and allows Global Crossing to help its customers select the right CDN solution for the appropriate business requirement. Businesses often employ multiple CDNs to take advantage of best-in-class services for specific requirements.

ABOUT ADIFY

Adify Corporation is a vertical ad network management and media services company that is an independent, wholly owned subsidiary of Cox TMI Inc., part of Atlanta-based Cox Enterprises.

ABOUT GLOBAL CROSSING

Global Crossing (NASDAQ: GLBC) is a leading global IP and Ethernet solutions provider with the world’s first integrated global IP-based network. The company offers a full range of data, voice and collaboration services. Global Crossing delivers an industry leading customer experience to approximately 40 percent of the Fortune 500, as well as to 700 carriers, mobile operators and ISPs. It delivers converged IP services to more than 700 cities in more than 70 countries around the globe.

Please visit www.globalcrossing.com or blogs.globalcrossing.com for more information about Global Crossing.

* LimelightDELIVER is a trademark of Limelight Networks, Inc.

TEMPE, AZ–(Marketwire - November 04, 2009) - Limelight Networks, Inc. (NASDAQ: LLNW) today
reported third quarter 2009 financial results.

“The Internet continues to transform and advance the way people live, work and play around the world. Tomorrow’s Internet will involve more real-time data flow and content consumption across a growing mix of computers, laptops, netbooks, game consoles, televisions, set-top boxes, and mobile devices, the combination of which will allow consumers to enjoy content, access information and conduct transactions anytime, anywhere. With our recently announced XD Platform and the mobility and monetization solutions we released during the quarter, we are positioning Limelight Networks to be a core provider of cloud-based services within this transformed world,
helping forward-thinking media, entertainment, enterprise and government organizations leverage the next-generation Internet’s capabilities to differentiate from their competitors and better serve their constituents,” said Jeff Lunsford, CEO of Limelight Networks.

Financial Highlights

For the third quarter of 2009, the company reported revenue of $32.5 million, up 1 percent from $32.3 million in the second quarter of 2009, and EBITDA, adjusted for share-based compensation and litigation costs, of $5.8 million.

Non-GAAP net loss, before stock based compensation and litigation costs, was $.6 million or 1 cent per basic share. GAAP net loss was $5.2 million, or 6 cents per basic share.

Capital investments were $10.6 million. The Company ended the quarter with no bank debt and approximately $153 million in cash and short-term marketable securities. A reconciliation of GAAP to non-GAAP net income is included in the attached tables.

Fourth-Quarter Outlook

Limelight Networks anticipates fourth quarter revenue to be in the range of $32.5 million to $34 million.

Financial Tables

                         LIMELIGHT NETWORKS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                  (In thousands, except per share data)

                                              September 30,  December 31,
                                                  2009           2008
                                              -------------  -------------
                                               (Unaudited)
                           ASSETS
Current Assets:
  Cash and cash equivalents                   $     102,447  $     138,180
  Marketable securities                              50,367         36,463
  Accounts receivable, net of reserves of
   $9,149 and $7,565 at September 30, 2009
   and December 31, 2008, respectively               27,692         33,482
  Income taxes receivable                               184              7
  Prepaid expenses and other current assets           9,206          7,834
                                              -------------  -------------
Total current assets                                189,896        215,966
Property and equipment, net                          39,653         40,185
Marketable securities, less current portion              16             13
Goodwill                                                619              -
Other intangible assets, net                            404              -
Other assets                                          9,048            628
                                              -------------  -------------
Total assets                                  $     239,636  $     256,792
                                              =============  =============

            LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
  Accounts payable                            $       7,180  $       8,920
  Deferred revenue, current portion                  12,077          9,865
  Provision for litigation                                -         65,645
  Other current liabilities                           8,905         14,928
                                              -------------  -------------
Total current liabilities                            28,162         99,358
Deferred revenue, less current portion                3,006          7,303
                                              -------------  -------------
Total liabilities                                    31,168        106,661
Commitments and contingencies                             -              -
Stockholders' equity:
  Convertible preferred stock, $0.001 par
   value; 7,500 shares authorized; 0 shares
   issued and outstanding                                 -              -
  Common stock, $0.001 par value; 150,000
   shares authorized; 84,667 and 83,405
   shares issued and outstanding at
   September 30, 2009 and
   December 31, 2008, respectively                       85             83
  Additional paid-in capital                        304,466        290,593
  Accumulated other comprehensive income                105            260
  Accumulated deficit                               (96,188)      (140,805)
                                              -------------  -------------
Total stockholders' equity                          208,468        150,131
                                              -------------  -------------
Total liabilities and stockholders' equity    $     239,636  $     256,792
                                              =============  =============

                         LIMELIGHT NETWORKS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)
                                (Unaudited)

                          Three Months Ended            Nine Months Ended
                --------------------------------------  ------------------
                September           September           September September
                   30,    June 30,     30,    June 30,     30,       30,
                  2009      2009      2008      2008      2009      2008
                --------  --------  --------  --------  --------  --------
Revenue         $ 32,530  $ 32,333  $ 33,116  $ 30,314  $ 98,038  $ 93,632
Costs and
 operating
 expenses
  Cost of
   revenue * †    20,907    21,078    21,557    19,751    63,456    61,980
  General and
   administrative
   * †             7,032     6,937    15,455     9,463    26,413    38,247
  Sales and
   marketing *     8,060     7,716     8,577     8,965    23,915    25,684
  Research &
   development *   2,024     1,944     2,008     1,694     5,878     5,293
  Provision for
   litigation          -         -     2,343     6,743   (65,645)   16,220
                --------  --------  --------  --------  --------  --------
Total costs and
 operating
 expenses         38,023    37,675    49,940    46,616    54,017   147,424

Operating
 income (loss)    (5,493)   (5,342)  (16,824)  (16,302)   44,021   (53,792)

Interest
 expense             (11)      (11)      (11)      (11)      (33)      (43)
Interest income      330       337     1,203     1,334     1,050     4,428
Other income
 (expense)            15      (111)      410      (377)      131       203
                --------  --------  --------  --------  --------  --------
Income (loss)
 before taxes     (5,159)   (5,127)  (15,222)  (15,356)   45,169   (49,204)
Income tax
 expense
 (benefit)            61       171       130       (25)      552       (78)
                --------  --------  --------  --------  --------  --------
Net income
 (loss)         $ (5,220) $ (5,298) $(15,352) $(15,331) $ 44,617  $(49,126)
                ========  ========  ========  ========  ========  ========

Net income
 (loss) per
 share:
  Basic         $  (0.06) $  (0.06) $  (0.18) $  (0.18) $   0.53  $  (0.59)
  Diluted       $  (0.06) $  (0.06) $  (0.18) $  (0.18) $   0.51  $  (0.59)

Shares used in
 per share
 calculations:
  Basic           84,489    84,033    83,022    82,889    84,012    82,845
  Diluted         84,489    84,033    83,022    82,889    87,708    82,845

*  Includes share-based compensation (see supplemental table for figures)

†  Includes depreciation (see supplemental table for figures)

                         LIMELIGHT NETWORKS, INC.
                        SUPPLEMENTAL FINANCIAL DATA
                              (In thousands)
                                (Unaudited)

                          Three Months Ended            Nine Months Ended
                --------------------------------------  ------------------
                September           September           September September
                   30,    June 30,     30,    June 30,     30,       30,
                  2009      2009      2008      2008      2009      2008
                --------  --------- --------  --------  --------  --------
Supplemental
 financial data
 (in
 thousands):
Share-based
 compensation:
Cost of
 revenues       $    638  $     582 $    594  $    558  $  1,772  $  1,658
General and
 administrative    1,805      1,820    1,669     1,698     5,755     5,031
Sales and
 marketing         1,293      1,253    1,400     1,431     3,734     4,137
Research and
 development         633        626      642       598     1,876     1,723
                --------  --------- --------  --------  --------  --------
Total
 share-based
 compensation   $  4,369  $   4,281 $  4,305  $  4,285  $ 13,137  $ 12,549
                ========  ========= ========  ========  ========  ========

Depreciation
 and amortization:
Network-related
 depreciation   $  6,018  $   6,133 $  6,607  $  6,192  $ 18,699  $ 18,812
Other
 depreciation        627        532      343       311     1,699       901
                --------  --------- --------  --------  --------  --------
Total
 depreciation
 and
 amortization   $  6,645  $   6,665 $  6,950  $  6,503  $ 20,398  $ 19,713
                ========  ========= ========  ========  ========  ========

Capital
 expenditures:
Capital
 expenditures
  (cash and
  accrual)      $ 11,070  $   4,113 $  6,803  $  5,013  $ 19,755  $ 14,911
                ========  ========= ========  ========  ========  ========

Net (decrease)
 increase in
 cash, cash
 equivalents
 and marketable
 securities     $(11,497) $   2,331 $ (7,844) $(10,194) $(21,826) $(20,513)
                ========  ========= ========  ========  ========  ========

End of period
 statistics:
Approximate
 number of
 active
 customers         1,370      1,370    1,304     1,291     1,370     1,304
Number of
 employees           321        301      285       250       321       285

                         LIMELIGHT NETWORKS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (In thousands)
                                (Unaudited)

                          Three Months Ended            Nine Months Ended
                --------------------------------------  ------------------
                September           September           September September
                   30,    June 30,     30,    June 30,     30,       30,
                  2009      2009      2008      2008      2009      2008
                --------  --------  --------  --------  --------  --------
Cash flows from
 operating
 activities:
  Net income
   (loss)       $ (5,220) $ (5,298) $(15,353) $(15,331) $ 44,617  $(49,126)
  Adjustments
   to reconcile
   net income
   (loss) to
   net cash
   (used in)
    provided
    by operating
    activities:
     Depreciation
      and
      amortization 6,645     6,665     6,950     6,503    20,398    19,713
     Share-based
      compensation 4,369     4,281     4,305     4,285    13,137    12,549
     Deferred
      income
      tax (benefit)
      expense          -         -       129        23         -       (82)
     Provision
      for
      litigation       -         -     2,343     6,743   (65,645)   16,220
      (Income)
       loss on
       foreign
       currency
       exchange        7       205       (30)       12       181       (18)
     Accounts
      receivable
      charges        329       622     1,802     1,925     4,239     5,289
     Accretion
      of marketable
      securities    (298)     (157)       11        21      (455)     (421)
     Loss on
      marketable
      securities       -         -         -        16         -        71
     Changes in
      operating
      assets and
      liabilities:
       Accounts
        receivable(1,648)    7,281   (11,006)   (1,880)    1,793   (15,157)
       Prepaid
        expenses
        and other
        current
        assets    (1,475)      721       417    (4,452)   (1,347)   (3,948)
       Income
        taxes
        receivable  (159)      140         8      (129)     (176)      473
       Other
        assets    (4,152)      149       153        67    (8,314)      784
       Accounts
        payable      244    (4,219)    2,348       (73)   (5,198)   (2,359)
       Accounts
        payable,
        related
        parties        -         -         -      (150)        -      (230)
       Deferred
        revenue     (291)     (972)    4,799      (774)   (2,085)    4,326
       Other
        current
        liabilities  358    (1,918)    3,555    (3,859)   (6,704)    4,733
       Other
        long term
        liabilities    -         -       (64)       64         -         -
                --------  --------  --------  --------  --------  --------
   Net cash
    provided by
    (used in)
    operating
    activities    (1,291)    7,500       367    (6,989)   (5,559)   (7,183)
                --------  --------  --------  --------  --------  --------

Cash flows from
 investing
 activities:
     Purchases
      of
      property
      and
      equipment  (10,586)   (5,308)   (7,870)   (4,231)  (16,648)  (14,536)
     Purchase of
      marketable
      securities (32,905)  (12,830)        -   (30,400)  (45,735)  (65,125)
     Sale of
      marketable
      securities   2,000     9,100    16,000    34,825    32,400    95,025
     Cash
      acquired in
      business
      acquisition      -        22         -         -        22         -
                --------  --------  --------  --------  --------  --------
  Net cash
   provided by
   (used in)
   investing
   activities    (41,491)   (9,016)    8,130       194   (29,961)   15,364
                --------  --------  --------  --------  --------  --------

Cash flows from
 financing
 activities:
     Escrow
      funds
      returned
      from
      share
      repurchase       -         -         -     1,070         -     1,070
     Proceeds
      from
      exercise
      of stock
      options
      and
      warrants        72        92        31        53       240       191
                --------  --------  --------  --------  --------  --------
  Net cash
   provided by
   financing
   activities         72        92        31     1,123       240     1,261
                --------  --------  --------  --------  --------  --------
  Effect of
   exchange
   rate
   changes on
   cash and
   cash
   equivalents        (5)     (205)     (223)      259      (453)     (120)
                --------  --------  --------  --------  --------  --------
Net increase
 (decrease) in
 cash and cash
 equivalents     (42,715)   (1,629)    8,305    (5,413)  (35,733)    9,322
Cash and cash
 equivalents,
 beginning of
 period          145,162   146,791   114,841   120,254   138,180   113,824
                --------  --------  --------  --------  --------  --------
Cash and cash
 equivalents,
 end of period  $102,447  $145,162  $123,146  $114,841  $102,447  $123,146
                ========  ========  ========  ========  ========  ========

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use Non-GAAP net income (loss)
and EBITDA adjusted for share-based compensation and litigation and damage
costs as a supplemental measure of operating performance. These measures
include the same adjustments that management takes into account when it
reviews and assesses operating performance on a period-to-period basis. We
consider Non-GAAP net income (loss) to be an important indicator of overall
business performance because it allows us to illustrate the impact of the
effects of share-based compensation, litigation expenses and provision for
litigation. We define EBITDA as GAAP net income (loss) before interest
income, interest expense, other income and expense, provision for income
taxes, depreciation and amortization. We believe that EBITDA provides a
useful metric to investors to compare us with other companies within our
industry and across industries. We define EBITDA adjusted for share-based
compensation and litigation and damage costs as EBITDA plus expenses that
we do not consider reflective of our ongoing operations. We use EBITDA
adjusted for share-based compensation and litigation and damage costs as a
supplemental measure to review and assess operating performance. We also
believe use of EBITDA adjusted for share-based compensation and litigation
and damage costs facilitates investors’ use of operating performance
comparisons from period to period. In addition, it should be noted that our
performance-based executive officer bonus structure is tied closely to our
performance as measured in part by certain non-GAAP financial measures.

The terms Non-GAAP net income (loss), EBITDA and EBITDA adjusted for
share-based compensation and litigation and damage costs are not defined
under U.S. generally accepted accounting principles, or U.S. GAAP, and are
not measures of operating income, operating performance or liquidity
presented in accordance with U.S. GAAP. Our Non-GAAP net income (loss),
EBITDA and EBITDA adjusted for share-based compensation and litigation and
damage costs have limitations as analytical tools, and when assessing our
operating performance, Non-GAAP net income (loss), EBITDA and EBITDA
adjusted for share-based compensation and litigation and damage costs
should not be considered in isolation, or as a substitute for net income
(loss) or other consolidated income statement data prepared in accordance
with U.S. GAAP. Some of these limitations include, but are not limited to:

--  EBITDA and EBITDA adjusted for share-based compensation and litigation
    and damage costs do not reflect our cash expenditures or future
    requirements for capital expenditures or contractual commitments;

--  they do not reflect changes in, or cash requirements for, our working
    capital needs;

--  they do not reflect the cash requirements necessary for litigation
    costs;

--  they do not reflect income taxes or the cash requirements for any tax
    payments;

--  although depreciation and amortization are non-cash charges, the
    assets being depreciated and amortized will be replaced sometime in the
    future, and EBITDA and EBITDA adjusted for share-based compensation and
    litigation and damage costs do not reflect any cash requirements for such
    replacements;

--  while share-based compensation is a component of operating expense,
    the impact on our financial statements compared to other companies can vary
    significantly due to such factors as the assumed life of the options and
    the assumed volatility of our common stock; and

--  other companies may calculate EBITDA and EBITDA adjusted for share-
    based compensation and litigation and damage costs differently than we do,
    limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our GAAP
results and using Non-GAAP Net Income (loss) and EBITDA adjusted for
share-based compensation and litigation and damage costs only as
supplemental support for management’s analysis of business performance.
Non-GAAP Net Income (loss), EBITDA and EBITDA adjusted for share-based
compensation and litigation and damage costs are calculated as follows for
the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the
Securities and Exchange Commission, the Company is presenting the most
directly comparable GAAP financial measures and reconciling the non-GAAP
financial metrics to the comparable GAAP measures.

                         LIMELIGHT NETWORKS, INC.
  Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
                              (In thousands)
                                (Unaudited)

                          Three Months Ended            Nine Months Ended
                --------------------------------------  ------------------
                September           September          September  September
                   30,    June 30,     30,    June 30,     30,       30,
                  2009      2009      2008      2008      2009      2008
                --------  --------  --------  --------  --------  --------
GAAP net income
 (loss)         $ (5,220) $ (5,298) $(15,352) $(15,331) $ 44,617  $(49,126)

Provision for
 litigation            -         -     2,343     6,743   (65,645)   16,220
Share-based
 compensation      4,369     4,281     4,305     4,285    13,137    12,549
Litigation
 defense
 expenses            273       367     8,189     2,667     4,585    16,222
                --------  --------  --------  --------  --------  --------

Non-GAAP net
 loss           $   (578) $   (650) $   (515) $ (1,636) $ (3,306) $ (4,135)
                ========  ========  ========  ========  ========  ========

                        LIMELIGHT NETWORKS, INC.
       Reconciliation of GAAP Net Income (Loss) to EBITDA to EBITDA
  Adjusted for Share-Based Compensation and Litigation and Damage Costs
                              (In thousands)
                                (Unaudited)

                          Three Months Ended            Nine Months Ended
                --------------------------------------  ------------------
                September           September           September September
                   30,    June 30,     30,    June 30,     30,       30,
                  2009      2009      2008      2008      2009      2008
                --------  --------  --------  --------  --------  --------
GAAP net income
 (loss)         $ (5,220) $ (5,298) $(15,352) $(15,331) $ 44,617  $(49,126)

  Add:
   depreciation
   and
   amortization    6,645     6,665     6,950     6,503    20,398    19,713
  Add:
   interest
   expense            11        11        11        11        33        43
  Less:
   interest
   and other
   income           (346)     (226)   (1,613)     (957)   (1,181)   (4,631)
  Plus income
   tax (benefit)
   expense            61       171       130       (25)      552       (78)
                --------  --------  --------  --------  --------  --------
EBITDA             1,151     1,323    (9,874)   (9,799)   64,419   (34,079)

  Add:
   provision
   for
   litigation          -         -     2,343     6,743   (65,645)   16,220
  Add:
   share-based
   compensation    4,369     4,281     4,305     4,285    13,137    12,549
  Add:
   litigation
   defense
   expenses          273       367     8,189     2,667     4,585    16,222
                --------  --------  --------  --------  --------  --------

EBITDA adjusted
 for share-based
 compensation,
 litigation and
 damage costs   $  5,793  $  5,971  $  4,963  $  3,896  $ 16,496  $ 10,912
                ========  ========  ========  ========  ========  ========

Conference Call

At approximately 4:30 p.m. EST (1:30 p.m. PST) today, management will host a quarterly conference call for investors. Access to the call will be provided by both telephone dial-in and via live Internet broadcast.

To access this conference call by telephone dial 1-866-831-6234 within the United States or 1-617-213-8854 outside of the U.S. using passcode 80947579. To access the live Internet broadcast, visit http://www.llnw.com. A replay of the call will also be available from http://www.llnw.com for one week following the conclusion of the event.

“We are very pleased to add Lonhyn’s experience in building successful, scalable enterprise-class software platforms to the Limelight Networks executive team. His proven track record within the areas of Internet security, distributed high-performance computing, and next-generation digital advertising platforms, as well as his focus on building an environment of innovation within software engineering, will help Limelight continue to differentiate our service offerings in a very dynamic market,” said Nathan Raciborski, co-founder and chief technology officer, Limelight Networks, Inc.

Mr. Jasinskyj previously was vice president, engineering at VideoEgg, a rich media content and advertising company. Prior to VideoEgg, he led Software Development at IronPort Systems, a leader in email and network security appliances and spam and malware prevention systems that was acquired by Cisco Systems in 2007. Mr. Jasinskyj also co-founded Lohika, one of the largest offshore software development companies in Eastern Europe, and was an early participant at Zembu Labs, a distributed database technology company.

In addition, Mr. Jasinskyj has eight years of both management and research and development experience at NASA’s Ames Research Center in the massively parallel computing and scientific visualization fields. His earlier background includes architecting large-scale software systems at ATX Inc., a major independent telephone company; as well as research in robotics, machine vision, and distributed computing in an academic environment.

Mr. Jasinskyj studied both Computer Science and Engineering, as well as Biology, at the University of Pennsylvania.

LOS ANGELES, CA, Oct. 13, 2009 – The Hollywood Radio & Television Society (HRTS) has joined forces with Digital Rapids, the leading provider of tools and solutions for bringing television, film and web content to wider audiences, and Limelight Networks, Inc (NASDAQ: LLNW), a content delivery provider for thousands of entertainment, technology, enterprise, and government entities around the world, to stream the Newsmaker Luncheon series live at www.HRTS.org, it was announced today by HRTS Executive Director, Dave Ferrara.

The alliance was formed as part of HRTS’ digital initiative to continually provide its members with relevant and informative content as the industry evolves into the online arena. By creating an online space, it welcomes new media companies to become a part of HRTS and provides members with panel topics to include a digital perspective. This will continue to position HRTS as the industry’s premier information and networking organization resource for the important conversations that ultimately impact the future success of the media business.

“We’re pleased to work alongside Digital Rapids and Limelight Networks to provide live Internet streaming to all of our members and industry associates that are unable to attend our events,” said Ferrara. “The industry’s transition into the digital space is a key focus for us, and combining our digital efforts with market-leading technologies is an important element, which allows us to reach a broader audience.”

Most recently, Limelight Networks streamed live coverage of “The Digital Chiefs: A Special Conversation on the Future of Media in the Digital Age” Newsmaker Luncheon. Content was encoded by Digital Rapids. Moderated by Bob Iger, President and CEO of The Walt Disney Company, the panel provided an engaging discussion of the monetization of digital media, the impact and future of social networking, and the need for even the most successful digital entertainment companies to continually evolve in a constantly growing digital media landscape. Panelists included Chris Anderson, Editor in Chief of Wired Magazine; Chad Hurley, CEO and Co-Founder of YouTube; Jason Kilar, CEO of Hulu; and Jonathan F. Miller, Chief Digital Officer, Chairman and CEO, Digital Media Group at News Corporation.

“We are delighted to be working with HRTS on the organization’s new digital initiatives,” said David Hatfield, Senior Vice President, Limelight Networks, Inc. “HRTS is not only bringing valuable content to a wider audience, it is helping to educate its members on both the technical and business model aspects of digital delivery. From ingest and encoding to delivery and monetization, HRTS is acting as a guide for other media companies looking to make the transition to a digital platform. Limelight Networks is proud to support HRTS in this process and help the organization deliver rich, new online media experiences to its members and to the public at large.”

“We’re excited to be working with HRTS and Limelight Networks to extend the reach of HRTS events with live online coverage,” said Mike Nann, Director of Marketing and Communications at Digital Rapids. “The recent ‘Digital Chiefs’ event was an ideal launching point for HRTS’ new live streaming initiative. With the event focusing on the future of digital media and featuring panelists who are shaping that future, it seems fitting that our award-winning technology was used to power the live Internet coverage directly from the venue. We look forward to continuing our successful relationship with HRTS and empowering their future online projects.”

About HRTS
HRTS is the entertainment industry’s premier information and networking forum. Chartered since 1947, the HRTS gathers together leading industry executives and companies representing broadcast and cable networks, studios, talent and management agencies, producers, legal and financial firms, new media companies and more to address issues that are relevant to the ongoing success and future of the entertainment business. Current HRTS membership represents over 700 executives and 48 leading companies from across the entire industry landscape.

About Digital Rapids Corporation
Digital Rapids develops market-leading hardware and software solutions for transforming and delivering media, enabling the multi-platform experiences that are defining the future of digital video. Scaling from individual applications to enterprise and global operations, Digital Rapids systems span the critical points in today’s complex media workflows. Recipient of two prestigious Frost & Sullivan awards in the World Video Encoders and Transcoders market, Digital Rapids combines innovative technology with proven expertise to help our customers maximize their productivity, quality, and the value of their content in the evolving digital media market. Digital Rapids Corporation (www.digital-rapids.com) is headquartered in Ontario, Canada with offices in the United States, the UK, Australia, Argentina and Hong Kong. For more information about Digital Rapids, please visit www.digital-rapids.com.

“Combining our leading-edge infrastructure and IP network with Limelight’s global capacity, the Bell CDN service is more efficient and faster because of its scalability and reliability,” said Stéphane Boisvert, President, Bell Business Markets. “Customers can reduce network latency, enhance website capacity, improve reliability and increase delivery speeds of the most bandwidth-intensive applications at lower cost, while reducing the load on their network.”

Higher speed, greater scalability

This is the first CDN service in Canada over a dedicated, network-based IP infrastructure. The Bell CDN uses Limelight’s software platform over Bell’s IP network, infrastructure, and data centres in Canada. For global coverage, the Bell CDN integrates directly into Limelight’s global network of data centres, interconnected by a dedicated fibre-optic backbone providing higher, more reliable speed and greater end-user scalability.

The websites associated with Astral Media’s television networks – such as family.ca, themovienetwork.ca and superecran.com – will be among the first clients to use the Bell CDN to deliver and monetize video content online. “Video streaming is a key feature of our websites and we see great benefit in a service that can efficiently deliver video content online without the need to increase server and network infrastructure overhead,” said Barbara Bailie, Director, Interactive for Astral Television Networks.

Guaranteed 100% availability

Bell CDN delivers an unparalleled experience with all forms of content including High Definition (HD), regardless of the volume of Internet traffic. The fully redundant architecture dynamically distributes content to strategically placed core, fallback and edge servers to ensure 100% availability, even in the event of large power, network or hardware outages.

The service includes global throughput of over 3 Tbps and edge connections using 10GigE technology for high capacity content delivery to end users, thus avoiding any public Internet congestion. It also provides advanced reporting logs and statistics to assess content popularity, active regions and exact viewing details.

“This exclusive, strategic partnership brings together Bell’s market-leading IP network and deep relationships within the Canadian marketplace with our proven content delivery technology and expertise. Together, we are offering Canadian businesses a truly differentiated service built upon the success and knowledge base of both companies,” said David Hatfield, Senior Vice President, Limelight Networks Inc.

As well, utilizing Limelight’s proprietary technology, the Bell CDN offers innovative device-detection, mobility and adaptive-streaming technology enabling customers to create a seamless experience for end users regardless of what device they are using.

About Bell

Bell is Canada’s largest communications company, providing consumers and business with solutions to all their communications needs, including Bell Mobility wireless, high-speed Bell Internet, Bell TV direct-to-home satellite television, Bell Home phone local and long distance, and IP-broadband and information and communications technology (ICT) services. Bell is proud to be a Premier National Partner and the exclusive Telecommunications Partner to the Vancouver 2010 Olympic and Paralympic Winter Games.

Bell is wholly owned by BCE Inc. (TSX, NYSE: BCE). For information on Bell’s products and services, please visit bell.ca. For corporate information on BCE, please visit bce.ca.

New Adaptive Intelligence layer provides advanced levels of performance and increased insight into real-time Internet and delivery conditions

Tempe, AZ - 5 October 2009 - Limelight Networks, Inc. (NASDAQ: LLNW) today introduced XD, the next-generation of the company’s global network platform, which adds new patent-pending Adaptive Intelligence to its massively scaled infrastructure. Also today, in a separate announcement, the company unveiled LimelightDELIVER XD^TM and LimelightCONTROL XD^TM-new services that take advantage of Adaptive Intelligence to provide advanced levels of control, performance, and insight into real-time delivery conditions.

“Content and applications are moving beyond the PC to smartphones, TVs, gaming consoles, widgets, and other connected devices. With each device having its own unique characteristics, the historical industry approach of selecting the right server is no longer enough to achieve maximum performance on a consistent basis,” said Nathan Raciborski, co-founder and chief technology officer, Limelight Networks, Inc. “With XD, we are combining network innovations and advanced software to actively manage each object delivery in real-time on a per-connection basis, ensuring a brilliant user experience across a wide variety of devices, even under extreme and changing network conditions.”

XD represents an evolution of the Limelight Networks’ operating environment, the software that for over eight years has powered the company’s content delivery service. XD expands this environment beyond delivery to include storage, analytics and computing subsystems that will support future value-added services. The launch of the new platform represents more than two years of research and development by the company’s engineering team, and thousands of hours of internal and field testing with customers.

Adaptive Intelligence

At the heart of the XD Platform is Adaptive Intelligence, a new software layer that harnesses the collective power of the company’s globally distributed computing resources to actively manage the delivery of every object in real-time. Using data collected about the unique conditions (such as content type, network connection, and user location) surrounding each delivery request, Adaptive Intelligence dynamically adjusts settings at the edge server to streamline and accelerate each specific delivery.

Customers who choose new Limelight delivery services based on the XD platform will see overall performance improvements in speed, consistency of delivery, and experience quality. They will also gain unique insights into real-time Internet conditions which will help them increase conversion rates, lengthen viewing or gaming times, and provide higher-quality end-user experiences.  Additionally, customers will have the choice to use these new services for one segment of their content library, and use standard delivery for another segment.

The patent-pending Adaptive Intelligence layer includes four innovative new technologies:

• Protocol Maximization, a patent-pending technique that dynamically adjusts in real-time the parameters of Internet-standard protocols on a connection-by-connection basis. These parameters are adjusted by factors including the location of the user, network conditions (such as congestion) at that moment, and the characteristics of the content being requested. For customers, Protocol Maximization enables faster, more consistent delivery of objects even in the most difficult of network conditions.

• Globally Distributed User Agents, small programs deployed in nearly every last mile network that collect real-time data about Internet conditions. Data collected by over 8 million of these agents worldwide is then used in Protocol Maximization to dynamically adapt how Limelight delivers each object. For customers, these User Agents also provide detailed insight into the end-user experience through the Limelight Networks user portal.

• Dynamic Origin, a technique which replicates origin content closer to the cache inside Limelight Network’s private network. This technique protects a customer’s origin against overload while improving responsiveness when a Limelight delivery center does not have a cached copy of the file to send to end users.

• Custom Cache Hierarchies, a technique which expedites the transfer of content to the edge by providing a uniquely tailored “map” through the in-network cache hierarchy. Maps are configured based on the location and diversity of the customer’s origin servers, the location and distribution of the customer’s users, and the customer’s content demand and library access patterns.

Adaptive Intelligence software operates entirely within Limelight’s globally distributed platform, and has no publisher, last-mile operator, or end-user dependencies. New services taking advantage of the Adaptive Intelligence layer will be denoted by an “XD” suffix, such as in LimelightDELIVER XD, also announced today (http://www.limelightnetworks.com/2009/10/limelight-networks%C2%AE-introduces-limelightdeliver-xd%E2%84%A2-and-limelightcontrol-xd%E2%84%A2/).

For more information about the XD Platform, visit: (http://www.limelightnetworks.com/platform/)

For a white paper explaining the innovative Adaptive Intelligence approach, visit: (http://resources.llnw.com/beyond-the-edge/?cid=70180000000KPTOAA4&ldsrc=Public_Relations)

New high-performance services use innovative Adaptive Intelligence features of the XD Platform to provide customers with control, adaptability, scalability and performance

Tempe, AZ - 5 October, 2009 - Limelight Networks, Inc. (NASDAQ: LLNW) today introduced LimelightDELIVER^TM XD and LimelightCONTROL XD^TM-advanced services that take advantage of patent-pending Adaptive Intelligence(http://www.limelightnetworks.com/platform/adaptive-intelligence/) in the recently introduced XD platform.  These new service innovations provide Limelight Networks customers with unprecedented levels of control and performance from their content delivery service.

“With today’s introduction, Limelight Networks has brought true innovation to the core of the CDN market. LimelightDELIVER XD and LimelightCONTROL XD harness the power of our global network platform to make real-time decisions about delivery based on the unique characteristics of each request. Through these new services, Limelight can enable content publishers to meet the growing need for high-performance global delivery and for actionable information to tune an online business,” said David Hatfield, senior vice president, Limelight Networks, Inc.

LimelightDELIVER XD

LimelightDELIVER XD is a next-generation, high-performance delivery service that leverages the Adaptive Intelligence technologies that are part of the new XD Platform. Adaptive Intelligence enables the LimelightDELIVER XD service to provide the best possible user experience under any circumstance, by surveying last mile conditions on a request-by-request basis and then tuning origin, cache, and delivery subsystems on-the-spot. This end-to-end customized approach differs from other delivery services that focus only on identifying the server best positioned to deliver content.

“In our initial tests of LimelightDELIVER XD, we saw high-performance, consistent delivery across a variety of content types and geographies. We’re excited about the positive impact this will have on page loads, site responsiveness, our customers’ buying experience, and the overall benefits that it will bring to our online business,” said Carter Lee, vice president, technology operations, Overstock.com, Inc.

LimelightDELIVER XD offers shorter start-to-finish delivery times, provides massive scalability to handle peak loads and flash crowds, and provides more consistent performance regardless of geography, user network capacity or Internet conditions. This means customers will be able to increase conversion rates, lengthen viewing or gaming times and provide higher-quality end-user experiences for video, music, games, social media, software, and entire websites.

LimelightCONTROL

LimelightCONTROL is a new, advanced management and reporting suite that enables customers to exercise more control over their content delivery service. This new service suite replaces the former LimelightEXCHANGE portal and includes an upgraded user interface, enhanced reporting that includes real-time data on Internet conditions, granular control over storage utilization, and more.

The flagship service, LimelightCONTROL XD, offers advanced management applications that help to increase efficiency, reduce expenses, improve the user experience, and provide deep insight into performance of an online business. The service includes customer provisioning of services, custom control over CDN storage options, and the innovative Internet Health Monitor which provides customers with insight into potential sources of end user experience issues, collected in real-time by millions of globally distributed user agents that are part of the XD Platform (http://www.limelightnetworks.com/platform/).

LimelightCONTROL XD is part of a family of services that includes LimelightCONTROL and LimelightCONTROL X. For a comparison of features, visit (http://www.limelightnetworks.com/infrastructure-services-content-delivery/cdn-reporting/).  All customers currently using the LimelightEXCHANGE portal will be transitioned to the new LimelightCONTROL service.

The introduction of LimelightDELIVER XD and LimelightCONTROL XD services coincides with the introduction of the next generation of the company’s global network platform-XD, also announced today (http://www.limelightnetworks.com/2009/10/limelight-networks%C2%AE-introduces-xd-the-company%E2%80%99s-next-generation-global-network-platform/).  The launch of the new platform services represents more than two years of research and development by the company’s engineering team, and thousands of hours of internal and field testing with customers.

For more information on LimelightDELIVER XD, visit: (http://www.limelightnetworks.com/infrastructure-services-content-delivery/software-video-delivery/)

For more information on LimelightCONTROL XD, visit: (http://www.limelightnetworks.com/infrastructure-services-content-delivery/cdn-reporting/)

CAMBRIDGE, Mass., September 21, 2009—Brightcove Inc., the leading online video platform, today announced that it has rolled out broad support for Adobe® Flash® Media Server 3.5 through content delivery services provided by Limelight Networks, Inc (NASDAQ: LLNW) providing more than 700 customers in 28 countries with turn-key access to enhanced dynamic delivery capabilities for HD-quality online video. Brightcove has also introduced on-demand access to advanced security options for video stream encryption and SWF verification to the company’s global customer base.

“Organizations of all kinds today are faced with increasingly complex requirements around quality and security for online video publishing and distribution,” said Bob Mason, Brightcove’s chief technology officer. “In the past, publishers have been forced to choose between quality, security and a ubiquitous format for their online video experiences. With the Brightcove platform’s support for Adobe Flash Media Server 3.5 on Limelight Networks’ global infrastructure, we’re providing organizations of all sizes with turn-key access to the most advanced stack of technologies and services for high-quality and secure video distribution on the Web.”

This announcement delivers on Brightcove and Adobe’s strategic alliance, announced in April 2009, to collaborate on technology and services that will enhance the quality of online video experiences and accelerate the development of content protection for rich media. The announcement continues the longstanding alliance between Brightcove and Limelight Networks, while showcasing Limelight’s commitment to deploying industry-leading services at global scale based on Adobe’s products.

“We are pleased that Brightcove and Limelight Networks are adopting the industry’s latest innovations to address media companies’ complex requirements around the quality and security of online video,” said Scott Wellwood, director of business development for Adobe. “With the new capabilities of Adobe Flash Media Server 3.5, Brightcove can provide media companies with choice and control, as well as enable them to deliver superb online video experiences to viewers.”

The broad reach of the Brightcove platform and its use among top publishers and media outlets worldwide will accelerate the adoption of Flash Media Server 3.5, enabling organizations to deliver secure, up to HD-quality, long-form content to consumers through standard Web browsers without the need for non-standard software plug-ins or proprietary technology stacks. In rolling out Flash Media Server 3.5, Brightcove customers will be able to take full advantage of cloud-based services for H.264 encoding, bandwidth optimization, dynamic streaming for multiple renditions, interactivity, pre-built services for live and on-demand streaming, and other capabilities to deliver the highest quality end user experience for their online video content.

Brightcove platform customers can also access on-demand content protection features to prevent abuse and ensure that content is easily and reliably delivered. The Brightcove platform enables customers to protect against video interception and stream-ripping using RTMPe encryption. Customers can also use the SWF verification features in Adobe Flash Media Server 3.5 to prevent video playback within unauthorized video players.

“Online businesses are faced with the challenge of ensuring high-quality end-user experiences across multiple device types, geographies, and network architectures,” said David Hatfield, senior vice president, Limelight Networks. “Today’s announcement simplifies the online publishing value chain by bringing together the global scale, reach and reliability of Limelight’s content delivery service, Brightcove’s market-leading online video platform, and Adobe’s innovative new Flash Streaming Services.”

“Rainbow Media has a network of websites with a fast-growing online audience, which poses challenges considering the diverse network conditions and connectivity issues,” said Michael Cagnazzi, vice president of product development at Rainbow Media. “Brightcove’s support for Adobe FMS 3.5 will enable us take advantage of bandwidth detection and dynamic optimization of our video streams to ensure high-quality viewing experiences, all out-of-the-box and without having to introduce new workflows for our producers or software plug-ins for end-users.”

“For Marvel Entertainment, video quality and security are key priorities for all of our video assets, from hi-res movie trailers and full-length shows to exclusive interviews and promos,” said John Dokes, vice president of sales and marketing, Digital Media Group, Marvel Entertainment. “By integrating support for Adobe FMS 3.5 on Limelight’s infrastructure, Brightcove has introduced a powerful and comprehensive solution for Marvel’s wide-ranging online video requirements.”

About Adobe Systems Incorporated
Adobe revolutionizes how the world engages with ideas and information – anytime, anywhere and through any medium. For more information, visit www.adobe.com.

About Brightcove
Brightcove is an online video platform. Media companies, businesses and organizations worldwide use Brightcove to publish and distribute video on the Web. Founded in 2004, Brightcove is a Software-as-a-Service (SaaS) business with offices across North America, Europe and Asia. For more information, visit http://www.brightcove.com.

Mr. Lunsford’s presentation will begin at approximately 1:00pm Eastern Daylight Time, U.S.A., on Wednesday, 9 September 2009. An audio webcast of Mr. Lunsford’s presentation will be made available from www.limelightnetworks.com.

“Limelight Networks is pleased to be working with MLB Advanced Media to help make the game more accessible to fans in more places by enabling a great mobile baseball listening experience in MLB.com At Bat 2009,” said Peter Coppola, vice president, product management, Limelight Networks, Inc.

The MLB.com® At Bat 2009 application enables fans to listen to live broadcasts of every Major League Baseball® game without blackout restrictions through the final game of the World Series. The application also includes MLB.com® Gameday™, which shows detailed pitch-by-pitch information, and a continuously-updated MLB® scoreboard.

--  Revenue of $32.3 million, a 7% increase from the second quarter of
    2008
--  Generation of $7.5 million in cash from operations and expansion of
    earnings margins
--  Acquisition of mobility and monetization innovator Kiptronic Inc.

Limelight Networks, Inc. (NASDAQ: LLNW) today reported second quarter 2009 financial results.

“The proliferation of Internet-connected devices and ongoing shift in consumer behavior are driving continued growth in Internet traffic and creating an environment of complexity where innovative technology companies will have great opportunities to build value-added solutions. We are pleased with the early reception of mobile and monetization services we acquired from Kiptronic as well as of value-added services that we are developing internally and piloting with customers,” commented Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc.

Financial Highlights

For the second quarter of 2009, the company reported revenue of $32.3 million, up 7% percent from $30.3 million in the same period last year, and EBITDA, adjusted for share-based compensation and litigation costs, of $6.0 million.

“Through disciplined operations we were able to expand our pro forma earnings margins and generate over $7 million in cash from operations, before capital investments, even though the challenging business environment led to revenue at the low end of our expectations,” said Doug Lindroth, chief financial officer.

Non-GAAP net loss, before stock-based compensation and litigation costs, was $0.7 million or 1 cent per basic share. GAAP net loss was $5.3 million, or 6 cents per basic share.

Capital investments were $4.1 million. The Company ended the quarter with no bank debt and approximately $164 million in cash and short-term marketable securities. A reconciliation of GAAP to non-GAAP net income is included in the attached tables.

Third-Quarter Outlook

Limelight Networks anticipates third quarter revenue to be in the range of $32 million to $33 million.

Financial Tables

                         LIMELIGHT NETWORKS, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                  (In thousands, except per share data)

                                                  June 30,    December 31,
                                                    2009          2008
                                                ------------  ------------
                                                (Unaudited)
                        ASSETS
Current Assets:
  Cash and cash equivalents                     $    145,162  $    138,180
  Marketable securities                               19,141        36,463
  Accounts receivable, net of reserves of
   $8,987 and $7,565 at June 30, 2009 and
   December 31, 2008, respectively                    26,391        33,482
  Income taxes receivable                                 24             7
  Prepaid expenses and other current assets            7,731         7,834
                                                ------------  ------------
Total current assets                                 198,449       215,966
Property and equipment, net                           35,169        40,185
Marketable securities, less current portion               24            13
Goodwill                                               1,080             -
Other assets                                           4,899           628
                                                ------------  ------------
Total assets                                    $    239,621  $    256,792
                                                ============  ============

       LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
  Accounts payable                              $      6,453  $      8,920
  Deferred revenue, current portion                   10,734         9,865
  Provision for litigation                                 -        65,645
  Other current liabilities                            8,555        14,928
                                                ------------  ------------
Total current liabilities                             25,742        99,358
Deferred revenue, less current portion                 4,640         7,303
                                                ------------  ------------
Total liabilities                                     30,382       106,661
Commitments and contingencies                              -             -
Stockholders' equity:
  Convertible preferred stock, $0.001 par
   value; 7,500 shares authorized; 0 shares
   issued and outstanding                                  -             -
  Common stock, $0.001 par value; 150,000
   shares authorized; 84,445 and 83,405 shares
   issued and outstanding at June 30, 2009
   and December 31, 2008, respectively                    84            83
  Additional paid-in capital                         300,036       290,593
  Accumulated other comprehensive income                  88           260
  Accumulated deficit                                (90,969)     (140,805)
                                                ------------  ------------
Total stockholders' equity                           209,239       150,131
                                                ------------  ------------
Total liabilities and stockholders' equity      $    239,621  $    256,792
                                                ============  ============

                         LIMELIGHT NETWORKS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)
                                (Unaudited)

                          Three Months Ended             Six Months Ended
                --------------------------------------  ------------------
                 June 30, March 31,  June 30, March 31,  June 30,  June 30,
                  2009      2009      2008      2008      2009      2008
                --------  --------  --------  --------  --------  --------
Revenue         $ 32,333  $ 33,175  $ 30,314  $ 30,202  $ 65,508  $ 60,516
Costs and
 operating
 expenses
  Cost of
   revenue * †    21,078    21,471    19,751    20,672    42,549    40,423
  General and
   administra-
   tive * †        6,937    12,444     9,463    13,329    19,381    22,791
  Sales and
   marketing *     7,716     8,139     8,965     8,142    15,855    17,107
  Research &
   development *   1,944     1,910     1,694     1,590     3,854     3,284
  Provision for
   litigation          -   (65,645)    6,743     7,134   (65,645)   13,878
                --------  --------  --------  --------  --------  --------
Total costs and
 operating
 expenses         37,675   (21,681)   46,616    50,867    15,994    97,483
Operating
 income (loss)    (5,342)   54,856   (16,302)  (20,665)   49,514   (36,967)
Interest
 expense             (11)      (11)      (11)      (21)      (22)      (33)
Interest income      337       383     1,334     1,891       720     3,226
Other income
 (expense)          (111)      227      (377)      170       116      (207)
                --------  --------  --------  --------  --------  --------
Income (loss)
 before taxes     (5,127)   55,455   (15,356)  (18,625)   50,328   (33,981)
Income tax
 expense
 (benefit)           171       320       (25)     (183)      492      (208)
                --------  --------  --------  --------  --------  --------
Net income
 (loss)         $ (5,298) $ 55,135  $(15,331) $(18,442) $ 49,836  $(33,773)
                ========  ========  ========  ========  ========  ========

Net income
 (loss) per
 share:
  Basic         $  (0.06) $   0.66  $  (0.18) $  (0.22) $   0.60  $  (0.41)
  Diluted       $  (0.06) $   0.64  $  (0.18) $  (0.22) $   0.57  $  (0.41)

Shares used in
 per share
 calculations:
  Basic           84,033    83,515    82,889    82,623    83,774    82,756
  Diluted         84,033    85,968    82,889    82,623    87,249    82,756

* Includes share-based compensation (see supplemental table for figures)

† Includes depreciation (see supplemental table for figures)

                         LIMELIGHT NETWORKS, INC.
                        SUPPLEMENTAL FINANCIAL DATA
                              (In thousands)
                                (Unaudited)

                           Three Months Ended            Six Months Ended
                 -------------------------------------- ------------------
                 June 30, March 31,  June 30, March 31,  June 30,  June 30,
                   2009     2009      2008      2008      2009      2008
                 -------- --------  --------  --------  --------  --------
Supplemental
 financial data
 (in thousands):
Share-based
 compensation:
Cost of revenues $    582 $    551  $    558  $    507  $  1,134  $  1,064
General and
 administrative     1,820    2,131     1,698     1,665     3,950     3,363
Sales and
 marketing          1,253    1,189     1,431     1,306     2,442     2,738
Research and
 development          626      616       598       482     1,242     1,080
                 -------- --------  --------  --------  --------  --------
Total
 share-based
 compensation    $  4,281 $  4,487  $  4,285  $  3,960  $  8,768  $  8,245
                 ======== ========  ========  ========  ========  ========

Depreciation and
 amortization:
Network-related
 depreciation    $  6,133 $  6,548  $  6,192  $  6,013  $ 12,681  $ 12,205
Other
 depreciation         532      540       311       247     1,072       557
                 -------- --------  --------  --------  --------  --------
Total
 depreciation
 and
 amortization    $  6,665 $  7,088  $  6,503  $  6,260  $ 13,753  $ 12,762
                 ======== ========  ========  ========  ========  ========

Capital
 expenditures:
Capital
 expenditures
 (cash and
 accrual)        $  4,113 $  4,572  $  5,013  $  3,095  $  8,685  $  8,108
                 ======== ========  ========  ========  ========  ========

Net (decrease)
 increase in
 cash, cash
 equivalents
 and marketable
 securities      $  2,331 $(12,660) $(10,194) $ (2,475) $(10,329) $(12,669)
                 ======== ========  ========  ========  ========  ========

End of period
 statistics:
Approximate
 number of
 active
 customers
 (excluding
 Kiptronic
 customers)         1,370    1,365     1,291     1,232     1,370     1,291
Number of
 employees            301      296       250       244       301       250

                         LIMELIGHT NETWORKS, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (In thousands)
                                (Unaudited)

                          Three Months Ended             Six Months Ended
                --------------------------------------  ------------------
                June 30,  March 31, June 30,  March 31, June 30,  June 30,
                  2009      2009      2008      2008      2009      2008
                --------  --------  --------  --------  --------  --------

Cash flows from
 operating
 activities:
  Net income
   (loss)       $ (5,298) $ 55,135  $(15,331) $(18,442) $ 49,836  $(33,773)
  Adjustments
   to
   reconcile
   net loss to
   net cash
   (used in)
   provided
   by
   operating
   activities:
    Depreciation
     and
     amortization  6,665     7,088     6,503     6,260    13,753    12,762
    Share-based
     compensation  4,281     4,487     4,285     3,960     8,768     8,245
    Deferred
     income
     tax
     (benefit)
     expense           -         -        23      (234)        -      (211)
    Excess
     tax
     benefit
     related
     to stock
     option
     exercises         -         -         -         -         -         -
    Provision
     for
     litigation        -   (65,645)    6,743     7,134   (65,645)   13,878
    (Income)
     loss on
     foreign
     currency
     exchange        205       (31)       12         -       174        12
    Accounts
     receivable
     charges         622     3,288     1,925     1,562     3,910     3,487
    Accretion
     of debt
     discount          -         -         -         -         -         -
    Accretion
     of
     marketable
     securities     (157)        -        21      (453)     (157)     (432)
    Loss on
     marketable
     securities        -         -        16        55         -        71
    Changes in
     operating
     assets and
     liabilities:
      Accounts
       receivable  7,281    (3,840)   (1,880)   (2,271)    3,441    (4,151)
      Prepaid
       expenses
       and
       other
       current
       assets        721      (593)   (4,452)       87       128    (4,365)
      Income
       taxes
       receivable    140      (157)     (129)      594       (17)      465
        Other
         assets      149    (4,311)       67       564    (4,162)      631
        Accounts
         payable  (4,219)   (1,223)      (73)   (4,634)   (5,442)   (4,707)
        Accounts
         payable,
         related
         parties       -         -      (150)      (80)        -      (230)
        Deferred
         revenue   (972)     (822)     (774)      301    (1,794)     (473)
        Other
         current
         liabili-
         ties     (1,918)   (5,144)   (3,859)    5,035    (7,061)    1,176
        Other
         long
         term
         liabili-
         ties          -         -        64         1         -        65
                --------  --------  --------  --------  --------  --------
  Net cash
   provided by
   (used in)
   operating
   activities      7,500   (11,768)   (6,989)     (561)   (4,268)   (7,550)
                --------  --------  --------  --------  --------  --------

Cash flows from
 investing
 activities:
    Purchases
     of
     property
     and
     equipment    (5,308)     (754)   (4,231)   (2,435)   (6,062)   (6,666)
      Purchase
       of
       marketable
       securi-
       ties      (12,830)        -   (30,400)  (34,725)  (12,830)  (65,125)
      Sale of
       marketable
       securi-
       ties        9,100    21,300    34,825    44,200    30,400    79,025
      Cash
       aquired
       in
       business
       acquisi-
       tion           22         -         -         -        22         -
                --------  --------  --------  --------  --------  --------
  Net cash
   provided by
   (used in)
   investing
   activities     (9,016)   20,546       194     7,040    11,530     7,234
                --------  --------  --------  --------  --------  --------

Cash flows from
 financing
 activities:
    Escrow
     funds
     returned
     from
     share
     repurchase        -         -     1,070         -         -     1,070
    Proceeds
     from
     exercise
     of stock
     options
     and
     warrants         92        76        53       107       168       160
                --------  --------  --------  --------  --------  --------
  Net cash
   provided by
   (used in)
   financing
   activities         92        76     1,123       107       168     1,230
                --------  --------  --------  --------  --------  --------
  Effect of
   exchange
   rate
   changes on
   cash and
   cash
   equivalents      (205)     (243)      259      (156)     (448)      103
                --------  --------  --------  --------  --------  --------
Net increase
 (decrease) in
 cash and cash
 equivalents      (1,629)    8,611    (5,413)    6,430     6,982     1,017
Cash and cash
 equivalents,
 beginning of
 period          146,791   138,180   120,254   113,824   138,180   113,824
                --------  --------  --------  --------  --------  --------
Cash and cash
 equivalents,
 end of period  $145,162  $146,791  $114,841  $120,254  $145,162  $114,841
                ========  ========  ========  ========  ========  ========

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use Non-GAAP net income and EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure of operating performance. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to illustrate the impact of the effects of share-based compensation, litigation expenses and provision for litigation. We define EBITDA as GAAP net income before interest income, interest expense, other income and expense, provision for income taxes, depreciation and amortization. We define EBITDA adjusted for share-based compensation and litigation and damage costs as EBITDA plus expenses that we do not consider reflective of our ongoing operations. We use EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure to review and assess operating performance. We also believe use of EBITDA adjusted for share-based compensation and litigation and damage costs facilitates investors’ use of operating performance comparisons from
period to period.

The terms Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Our Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs should not be considered in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP.

Some of these limitations include, but are not limited to:

--  EBITDA and EBITDA adjusted for share-based compensation and litigation
    and damage costs do not reflect our cash expenditures or future
    requirements for capital expenditures or contractual commitments;

--  they do not reflect changes in, or cash requirements for, our working
    capital needs;

--  they do not reflect the cash requirements necessary for litigation
    costs;

--  they do not reflect income taxes or the cash requirements for any tax
    payments;

--  although depreciation and amortization are non-cash charges, the
    assets being depreciated and amortized will be replaced sometime in the
    future, and EBITDA and EBITDA adjusted for share-based compensation and
    litigation and damage costs do not reflect any cash requirements for such
    replacements;

--  while share-based compensation is a component of operating expense,
    the impact on our financial statements compared to other companies can vary
    significantly due to such factors as the assumed life of the options and
    the assumed volatility of our common stock; and

--  other companies may calculate EBITDA and EBITDA adjusted for share-
    based compensation and litigation and damage costs differently than we do,
    limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP Net Income and EBITDA adjusted for share-based compensation and litigation and damage costs only as supplemental support for management’s analysis of business performance. Non-GAAP Net Income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are calculated as follows for the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the Company is presenting the most
directly comparable GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable GAAP measures.

                         LIMELIGHT NETWORKS, INC.
  Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
                              (In thousands)
                                (Unaudited)

                          Three Months Ended             Six Months Ended
                --------------------------------------  ------------------
                June 30,  March 31, June 30,  March 31, June 30,  June 30,
                  2009      2009      2008      2008      2009      2008
                --------  --------  --------  --------  --------  --------

GAAP net income
 (loss)         $ (5,298) $ 55,135  $(15,331) $(18,442) $ 49,836  $(33,773)

Provision for
 litigation            -   (65,645)    6,743     7,134   (65,645)   13,878
Share-based
 compensation      4,281     4,487     4,285     3,960     8,768     8,245
Litigation
 defense
 expenses            367     3,945     2,667     5,366     4,312     8,033
                --------  --------  --------  --------  --------  --------

Non-GAAP net
 loss           $   (650) $ (2,078) $ (1,636) $ (1,982) $ (2,729) $ (3,617)
                ========  ========  ========  ========  ========  ========

                         LIMELIGHT NETWORKS, INC.
       Reconciliation of GAAP Net Income (Loss) to EBITDA to EBITDA
  Adjusted for Share-Based Compensation and Litigation and Damage Costs
                              (In thousands)
                                (Unaudited)

                          Three Months Ended             Six Months Ended
                --------------------------------------  ------------------

                June 30,  March 31, June 30,  March 31, June 30,  June 30,
                  2009      2009      2008      2008      2009      2008
                --------  --------  --------  --------  --------  --------

GAAP net income
 (loss)         $ (5,298) $ 55,135  $(15,331) $(18,442) $ 49,836  $(33,773)

   Add:
    depreciation
    and
    amortization   6,665     7,088     6,503     6,260    13,753    12,762
   Add:
    interest
    expense           11        11        11        21        22        33
   Less:
    interest
    and other
    income          (226)     (610)     (957)   (2,062)     (836)   (3,019)
   Plus income
    tax
    (benefit)
    expense          171       320       (25)     (183)      492      (208)
                --------  --------  --------  --------  --------  --------
EBITDA             1,323    61,944    (9,799)  (14,406)   63,267   (24,205)

   Add:
    provision
    for
    litigation         -   (65,645)    6,743     7,134   (65,645)   13,878
   Add:
    share-based
    compensation   4,281     4,487     4,285     3,960     8,768     8,245
   Add:
    litigation
    defense
    expenses         367     3,945     2,667     5,366     4,312     8,033
                --------  --------  --------  --------  --------  --------

EBITDA adjusted
 for
 share-based
 compensation,
 litigation and
 damage costs   $  5,971  $  4,731  $  3,896  $  2,054  $ 10,702  $  5,951
                ========  ========  ========  ========  ========  ========

Conference Call

At approximately 4:30 p.m. EDT (1:30 p.m. PDT) today, management will host a quarterly conference call for investors. Access to the call will be provided by both telephone dial-in and via live Internet broadcast.

To access this conference call by telephone dial 1-866-713-8564 within the United States or 1-617-597-5312 outside of the U.S. using passcode
69016158. To access the live Internet broadcast, visit http://www.llnw.com. A replay of the call will also be available from
http://www.llnw.com for one week following the conclusion of the event.

Tempe, Az — 27 July 2009 — Limelight Networks, Inc (NASDAQ: LLNW) today announced the immediate availability of LimelightREACH™ and LimelightADS™, two new services that provide turnkey capabilities for customizing and monetizing media delivery in a mobile world. These new solutions are based on technology Limelight Networks acquired from Kiptronic in May 2009.

Sample mobile website delivered by LimelightREACH. Text llnwmobile to 64636 to see for yourself.

According to Nielsen(1), US consumers are watching more content per month than ever before, and viewing is wide spread across three screens: traditional television, Web browsers, and media-enabled mobile devices. As audiences continue to fragment across devices, publishers need a simple way to deliver content wherever those audiences go. LimelightREACH and LimelightADS solve this problem by using contextual awareness and an intelligent delivery platform to customize media assets on the fly. The technology delivers a high-quality playback experience for consumers and new targeted revenue opportunities for content publishers. This means publishers can create content once, yet distribute and monetize it across many networks and connected devices.

“Consumer viewing habits are evolving rapidly with the expectation that media should be available not just at home, but on the go. As a result, many of our customers are looking at aggressively expanding the reach of their online media in the mobile arena,” said Bill Loewenthal, vice president and general manager, mobility and monetization solutions, Limelight Networks. “Our solution is a combination of mobility products, robust, media-grade infrastructure that provides the scale necessary to support ever-growing audiences, and the field-proven success of mobile infrastructure technologies that target and personalize media delivery.”

LimelightREACH uses the company’s intelligent global computing platform to auto-detect end-user devices and deliver device-optimized media files, with no change in the publishing process, for the best consumer media experience. The solution enables publishers to distribute properly-formatted content to almost any media-enabled mobile handset – from early video-capable phones to smartphones such as the Apple iPhone™ 3GS or Palm Pre™ – using a single, Universal URL. Based on an ever-growing library of device profiles, LimelightREACH delivers the right file over the right protocol and network to the specific device that requested the content. Through an open architecture, LimelightREACH can be paired with Limelight Networks’ own media-grade content delivery service, or service from other major CDN providers.

LimelightADS helps publishers move beyond the Web browser to reach audiences in widgets, mobile applications, video games, and more. The service allows publishers to present dynamic pre-, mid-, or post-roll video and audio advertising into media that is delivered to mobile or connected users. LimelightADS works seamlessly with a publisher’s existing ad insertion process, integrating directly into leading ad decision engines like DoubleClick DART and Microsoft Atlas, and allowing publishers to maintain any existing management interface for measuring ad success. Publishers can change ads dynamically and even rotate multiple campaigns and advertisers within the same content segment. With LimelightADS, publishers remain in control, managing their ad sales and operations as they always have—whether they are using their own internal ad sales teams or are working through a trusted partner.

For more information about LimelightREACH and LimelightADS, visit our new mobile products web page. To try LimelightREACH on your own mobile device, text ‘llnwmobile’ to 64636.(2) Some features described may be carrier, network, coverage map, or SIM card dependant, or not available in all areas.

Editors Note: There is an image accompanying the text of this announcement. Please visit http://www.limelightnetworks.com/2009/07/new-mobility-and-monetization-services to view.

(1) Nielsen A2/M2 Three Screen Report, First Quarter 2009
(2) Airtime, data charges, and/or additional charges may apply.

Customers of Flash streaming services now have more options for broadcast-quality video delivery on the Internet. With support for Adobe Flash Media Server 3.5, LimelightSTREAM enables dynamic streaming, DVR functionality within a live stream, and enhanced H.264 video and High Efficiency AAC (HE-AAC) audio.

Dynamic Streaming

For an optimum viewing experience, the quality of the video file you deliver needs to match your end user’s available bandwidth. The trouble is, their bandwidth may suddenly drop, perhaps because other users in the house or community start consuming more bandwidth on a shared pipe. Your viewer is left watching (or trying to watch) a high-bit-rate video on a connection that’s too slow to handle the stream, resulting in stutters, stops, and a less-than-positive experience.

Dynamic streaming addresses this common scenario by switching seamlessly to a higher- or lower-quality stream based on available bandwidth — without ever disrupting the flow of video or audio. (Of course, this means you need to have encoded and uploaded the same content as multiple independent files at different bit-rates.)

Although Flash Media Server 3.5 provides the ability to switch files, it’s the Flash client that actually requests the change. The user’s Flash player (version 10 required) monitors current bandwidth and CPU load. If the video buffer is filling up too rapidly or the CPU is nearing pre-defined utilization levels, the Flash client can simply ask the server to switch to a different file.

Dynamic streaming is available for live and on-demand Flash content and supports both .flv and H.264 files types.

Live DVR

Give your viewers the freedom to walk away from a live event without worrying about missing out on the action. Flash Media Server 3.5 supports live DVR, enabling end users to return to portions of live streaming events, even if their Internet connection choked and missed a crucial moment. With Live DVR, you can create streaming video solutions that include instant-replay, catch-up, or seek functionality.

Even with all these interactive features, there’s no transfer of your content to the user’s system. As with all streaming services, Flash Media Server 3.5 caches the live DVR at your discretion. ]]> http://www.limelightnetworks.com/2009/07/flash-media-server/feed/ http://www.limelightnetworks.com/2009/07/origindirect/ http://www.limelightnetworks.com/2009/07/origindirect/#comments Sat, 18 Jul 2009 23:58:27 +0000 michael http://www.limelightnetworks.com/?p=907 LimelightSITE, the newest addition to our content delivery offerings, leverages Limelight’s advanced routing methodology called Origin Direct.™ This innovation bypasses “middle-mile” Internet bottlenecks by fulfilling requests over our own dedicated fiber-optic backbone. So your objects speed their way to your users and your web pages load in a flash — no matter how many visitors are on your site or how far your content needs to travel to their browsers.

Your own private Internet
In fact, you can think of our network as a private, global Internet available only to Limelight Networks customers. Our backbone joins together massive Delivery Centers, strategically located to connect directly into more than 900 last-mile access networks. Origin Direct integrates with this robust architecture to retrieve and deliver both static and dynamic web content at lightning-speed.

Rather than trying to maneuver across the often-congested, unpredictable public Internet, Origin Direct routes requests from the edge directly to your origin server. And with the same awesome performance, it returns the objects that make up your website over the same private, high-capacity path — directly to your end users.

IP Connect for added performance
If your website is co-located within the same facility as one of our regional Delivery Centers, you can realize even greater performance gains. We can use IP Connect to create a private connection between your site and our CDN — so your content refreshes will always bypass the Internet. IP Connect is available as a Gigabit or 10-Gigabit Ethernet link.

Not just for website acceleration
LimelightSITE isn’t the only delivery service that benefits from Origin Direct. This innovative methodology accelerates all traffic on our network, including software downloads, video and audio, and other content delivered using LimelightDELIVER, LimelightSTREAM, or IP Connect services.

Segment your markets. Tailor your content. With the Geo Reporting feature in LimelightCONTROL X and LimelightCONTROL XD, you’ll have the information you need to make better business decisions. This robust feature enables you to assess traffic at the global or continent level—and drill down instantly for city-by-city details. With quick and easy views of traffic data in different geographies, you’ll be in a position to deliver the right Flash Video, MP3 streams — or any other content — to audiences around the world.

At-a-glance information. Any way you want it.

Geo Reporting provides geographic information for each Limelight Networks service and each sub-report — in a choice of map and table formats. Color-coded maps show you the hot spots of activity around the world. Choose to display all geographies at once or only the top 10 locations. As with other LimelightCONTROL features, you can compare locations based on number of requests, bytes sent, and total seconds — or as a percent of total volume. But Geo Reporting puts more detail by country, state, or city just a click away.

Choose LimelightCONTROL X or LimelightCONTROL XD to gain all the advantages of Geo Reporting.

Whether seeding your cache with Cache Fill, accelerating HTML delivery, or simply enhancing your overall deliver platform, your services gains the performance benefits of our private fiber-optic network when you host your servers in one of the same strategically located data centers. We’ll connect them to your users via full-route broadcasting to tier-one commercial providers and more than 900 access networks.

Direct access to user networks

IP Connect boasts direct interconnections with more than 900 access networks — most of the world’s largest networks. The result? More than 85% of content delivered via IP Connect returns directly to the access network from which it was requested, never through an intermediary network.

To further performance, reliability, and scalability, IP Connect maintains the fastest available connections — usually 10-Gigabit Ethernet — into these access networks. Simply put, IP Connect transmits your web pages more quickly, makes online games more responsive, decreases auction delays, and boosts chat time.

Cache Fill option

You may need IP Connect for Cache Fill connectivity rather than Full Route service. This means you connect to us at one of our Delivery Centers to populate your content across the Limelight Networks platform. Whether you choose Limelight storage or prefer to store source content on your own servers, the IP Connect Cache Fill service ingests your data across a 1- or 10-Gigabit Ethernet port for distribution to our Delivery Center servers.

Not just for content delivery customers

You don’t have to be a content delivery customer to gain access to IP Connect functionality. Send and receive email, run an online store, deploy live help — you name it(1) — it will get to your users more quickly when you choose IP Connect on the Limelight Networks infrastructure. And when your business grows to require full CDN services, you’ll already be connected to a world-class content delivery platform.

Single source advantage

Choose IP Connect to reduce IT complexity and increase redundancy. When you turn to one network provider for end user service of both regular and cached content, your data is always on our network, so there’s never a network miss. In addition, you can leverage your single relationship with Limelight Networks to reduce your IT costs. And should there be a network issue, our expert support staff stands by, ready to respond rapidly — so troubleshooting is one convenient phone call away.

How it works

You’ll need to run and maintain your own servers at one of the data centers below.(2) Then Limelight Networks or a third party connects your hardware with ours via 1- or 10-Gigabit Ethernet ports.(3) IP Connect lets you use the Border Gateway Protocol with your AS number or ours. Limelight Networks can also provide IP addresses on an as-needed basis. We advise using multi-homing for fault tolerance and can make further recommendations in complex situations with IP Connect Integration Services. IP Connect services are available 100% of the time, and Limelight Networks will give you seven days notice of any maintenance that will impact service.

Availability

Take advantage of IP Connect services at data centers in or near the following cities:
USA: Atlanta, Chicago, Dallas, Las Vegas, Los Angeles, Miami, New York City, Phoenix area, San Francisco Bay area, Seattle, and Washington, D.C.
Canada: Toronto, Vancouver
Europe: Amsterdam, Frankfurt, London, Madrid, Milan, Paris, and Stockholm

Contact a Limelight Networks representative for location details.

Notes

1. Except for spam. Seriously.
2. Speak with a Limelight Networks representative if you need managed servers.
3. If you need a local loop to connect to a Limelight Networks data center from a separate building, you must engage a third-party vendor.

Shared secret

Media Vault uses a shared secret encoded in the URL itself to avoid the three-way handshakes common to other forms of authentication. These less efficient methods can lead to severe latency in connection time while your user waits on a central verification server. An MD5 hash encrypts the secret phrase shared between the Limelight Networks CDN and you — as well as any other limiting factors you choose, such as IP block or URL expiration time — all in the URL itself.

The shared secret method helps you scale easily: Since all verification is embedded in the URL, you don’t need to add capacity to a verification server as your business grows — like you do with other solutions. New versions of Media Vault let you use two shared secrets at a time: if your secret gets compromised, there is a second one that can be used as a backup. The first one expires after all servers know the second secret, and no content request ever fails.

IP protection

The requesting IP address is one parameter you can embed in a Media Vault–protected URL. By restricting access to an individual IP address or to a range of IP addresses, you can be sure your media is available only to those clients you specify. This feature works with Windows Media and Flash streaming.

Time-to-live

By encoding the start and end time in a URL, you can set a time-to-live for the content. End users can’t access the media before or after times that you choose. Enter a start time to set content to automatically go live in the future — without worrying that your audience may see a video episode before its scheduled time, or information about an unannounced product. Setting an end time helps you prevent unauthorized sites from hot-linking to your assets indefinitely. And since the URL is encrypted, nobody can guess what these times are. This Media Vault feature works with Flash, Windows Media, and MP3 streaming, as well as HTTP delivery.

Page and referrer URL

You can also encrypt your page and referrer URLs with similar MD5-hash protection to keep other sites from showing your media without your authorization. For instance, the referrer might be http://www.yoursite.com/movie.swf, and a page might look like http://www.yoursite.com/page.htm. If a request for your media comes from a different Flash player or from a different page, Media Vault will not serve your content to the offending client. These restrictions work with Media Vault for Flash streaming.

Contact your Limelight Networks representative to discuss the best way to protect your content with Media Vault.

Media Vault service details

• Media Vault HTTP delivery: Time-to-live security
• Media Vault Flash streaming: IP Protection, time-to-live, and page and referrer URL security
• Media Vault Windows Media streaming: Multiple shared secrets, IP Protection, and time-to-live security
• Media Vault MP3 streaming: Time-to-live security

Liberate your data

With direct access to the source data, you can create new reports that meet your specific needs. Overlay trend lines to compare and contrast different time periods. Show cumulative progress toward goals. Even send alerts when you detect certain conditions.

Have it your way

The LimelightCONTROL Reporting API can be accessed from any programming language that supports SOAP protocols, including client-side JavaScript and all major server-side languages. Sample C# and PHP code makes it easy to get started.

Seek and deploy

All you need to do to deploy FLV Seek is update your metadata to include keyframe and offset locations. When your user skips ahead, your embedded player will start playing from the closest keyframe relative to his scrub point. In this way, FLV Seek simulates Flash video streaming for progressive download scenarios.

Perfect for social media and other user-generated content, FLV Seek offers an economic way to provide a great user experience.

World of possibilities

You can use Geo Compliance rules with HTTP delivery and Windows Media and Flash streams. LimelightCONTROL provides a powerful interface to set up geographic rule sets and content maps. Simply define desired geography by country, U.S. state, or international region, then map those rules to your content directories. Your Limelight delivery service takes it from there — or doesn’t, based on your command.

“Microsoft Silverlight 3 and IIS Smooth Streaming will help change the way publishers create and deliver Web experiences, and Microsoft is pleased that Limelight Networks will help accelerate its adoption by making its professional services experience available to the Microsoft ecosystem,” said Eddie Amos, general manager of the Developer Division at Microsoft Corp. “Silverlight continues to see rapid adoption around the globe, and Microsoft is proud to continue its long-standing relationship with Limelight to ensure support for Silverlight 3 on its global content delivery service.”

Microsoft Silverlight 3 and IIS Smooth Streaming offer key features that will highlight support for higher quality video and audio, empower richer experiences and help improve Rich Internet Application productivity. When combined with the global presence and scale of Limelight Networks’ content delivery service, Silverlight 3 will help customers develop and deliver a consistent, broadcast-quality online experience to Internet video audiences around the world.

“Limelight Networks’ global content delivery service has offered support for Silverlight since its initial launch in 2007, and since that time, customers have selected our Silverlight implementation to deliver some of the largest events ever on the Internet. Today, entertainment and enterprise customers continue to choose Silverlight to create cost-effective, feature-rich Web experiences, and so we’re pleased to announce both service and consulting support for the next generation of Microsoft Silverlight,” said Peter Coppola, vice president, product management, Limelight Networks, Inc.

The Limelight Networks Professional Services group (LimelightPS) offers development, operational, and project management support to media, entertainment, and enterprise customers. Using best practices learned while delivering events such as the 2008 Summer Games, Limelight consultants can assist with Silverlight implementations of any size. Limelight’s services include designing architecture for scale, recommending best of breed differentiated user interfaces, suggesting proven methods to minimize costs, and most importantly, ensure that customers’ Silverlight-based solutions are delivered flawlessly. For more information about LimelightPS solutions, visit http://www.limelightnetworks.com/limelightps.htm.

Through its content delivery service, Limelight Networks today provides support for Microsoft Silverlight including advanced technologies such as Smooth Streaming and Deep Zoom.

“Content consumption is moving beyond just the browser to a new class of Internet-connected devices, as consumers are accessing their favorite media wherever and whenever they want. As one of the first CDNs to offer IPv6 services, our platform is now ready to deliver content to that next generation of always-connected devices,” said Nathan Raciborski, co-founder and chief technology officer, Limelight Networks, Inc. “We’re pleased to be leading the industry in offering IPv6 services, and look forward to working collaboratively with our customers and partners to deploy IPv6 applications across our worldwide network platform.”

Limelight Networks’ IPv6 capabilities include:
Ability to offer dual-stack (IPv6/IPv4) or IPv6 connectivity at company-owned locations
-/32 allocations from the American Registry of Internet Numbers (ARIN), Asia-Pacific Network Information Centre (APNIC), and Reseaux Internet Protocol Europeens (RIPE)
Full IPv6 transit routes from multiple providers
Full IPv6 Domain Name Services (DNS)
IPv6 peering at v6 enabled-exchanges
IPv6 (dual-stack) capable from any transit or peering or customer origin ingress to the edge
Customer and end-user IPv6 interface for existing or new IPv4 content

The IPv6 protocol designed by the Internet Engineering Task Force will gradually replace the current protocol widely used on the Internet, Internet Protocol v4 (IPv4). The 32-bit IPv4 address space for devices is rapidly being depleted, an issue resolved with the 128-bit address space allowed for in IPv6. The IPv6 protocol also adds improvements in areas such as bandwidth efficiency, routing, and network autoconfiguration. Limelight Networks will run IPv4 and IPv6 simultaneously across its entire network platform.

“A sweeping change in consumer behavior is driving a migration of media consumption from the PC to a wider variety of Internet-connected and mobile devices. Today, the distribution and monetization of content on these devices is complex and difficult to implement in a scalable fashion. The combination of Limelight Networks’ distributed computing and delivery platform with Kiptronic’s device-targeting and dynamic ad insertion technologies will allow us to provide the world’s largest media and entertainment companies a streamlined and scalable solution to this problem,” said Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc. “We look forward to working with the talented Kiptronic team to bring to market additional innovative solutions for mobile and connected devices that will benefit our customers and our ecosystem partners.”

Kiptronic’s services enable content publishers to deliver content and dynamic advertisements tailored to the mobile or connected device without making changes to their existing publishing, hosting, trafficking, or reporting platforms. Kiptronic’s web-based tools help advertisers dynamically detect and serve dynamic video ads to connected devices with the same ease and functionality as when they are served to web browsers. Kiptronic’s open-platform approach includes integration with DoubleClick® DART for Publishers and Microsoft® Atlas AdManager, part of the Atlas Publisher Suite. Kiptronic works with publishers such as NPR, FOX, The Guardian, Conde Nast, The Economist, and Minnesota Public Radio, and was recently selected to provide dynamic mobile video ad solutions for NBC.com.

As part of Limelight Networks, the Kiptronic team will continue to remain focused on building mobility and monetization solutions.

“Today is an exciting day for Kiptronic customers, partners, and employees. Mobile and connected devices are the next phase of growth for the Internet, and by joining together with Limelight Networks, the Kiptronic solution gains the scale and resources necessary to help the world’s largest media companies capitalize on this emerging opportunity,” said Bill Loewenthal, president and chief executive officer, Kiptronic, Inc.

Terms of the transaction, which was completed with a combination of Limelight Networks common stock and cash, were not disclosed.

- Reversal of $66 million accrual due to favorable ruling from Federal District Court of Massachusetts

- Launch of LimelightSITE(TM) with over 150 customers, entry into enterprise and e-commerce sectors

- Addition of approximately 35 net new customers

TEMPE, Ariz., May 6 /PRNewswire-FirstCall/ — Limelight Networks, Inc. (Nasdaq: LLNW) today reported first quarter 2009 financial results.

“Limelight Networks achieved solid year-over-year revenue growth during the first quarter. We continued to see strong demand for our core content delivery and storage services, and were pleased with the market reception for LimelightSITE and a favorable ruling in our patent litigation with Akamai. We believe that continued Internet adoption presents us with attractive growth opportunities and that our eight years of innovation, our global scale and our network-based architecture are the optimal solution for publishers, enterprises, and governments advancing their online presence,” commented Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc.

Financial Highlights

For the first quarter of 2009, the company reported revenue of $33.2 million, up 10% percent from $30.2 million in the same period last year, and EBITDA, adjusted for share-based compensation, litigation and the reversal of a previously recorded damage accrual, of $4.7 million.

Non-GAAP net loss, before stock based compensation, litigation costs, and reversal of a previously recorded damage accrual, was $2.1 million or 2 cents per basic share. GAAP net earnings were $55.1 million, or 66 cents per basic share and 64 cents on a fully-diluted basis. These earnings include the reversal of a previously recorded damage accrual of $66 million as a result of the Massachusetts Federal District Court order finding that we do not infringe the Akamai 703 patent.

Capital purchases incurred were $4.6 million. The Company ended the quarter with no bank debt and approximately $162 million in cash and short-term marketable securities. A reconciliation of GAAP to non-GAAP net income is included in the attached tables.

Second-Quarter Outlook

Limelight Networks anticipates second quarter revenue to be in the range of $32.2 million to $33.2 million.
Financial Tables

LIMELIGHT NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

March 31, December 31,
2009 2008
—- —-
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $146,791 $138,180
Marketable securities 15,197 36,463
Accounts receivable, net of reserves of
$8,585 and $7,565 at March 31, 2009
and December 31, 2008, respectively 34,238 33,482
Income taxes receivable 164 7
Prepaid expenses and other current assets 8,427 7,834
—– —–
Total current assets 204,817 215,966
Property and equipment, net 37,721 40,185
Marketable securities, less current portion 8 13
Other assets 4,939 628
—– —
Total assets $247,485 $256,792
======== ========

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $11,770 $8,920
Deferred revenue, current portion 10,328 9,865
Provision for litigation - 65,645
Other current liabilities 9,785 14,928
—– ——
Total current liabilities 31,883 99,358
Deferred revenue, less current portion 6,018 7,303
—– —–
Total liabilities 37,901 106,661
Commitments and contingencies - -
Stockholders’ equity:
Convertible preferred stock, $0.001 par
value; 7,500 shares authorized; 0
shares issued and outstanding - -
Common stock, $0.001 par value; 150,000
shares authorized; 83,792 and 83,405
shares issued and outstanding at
March 31, 2009 and December 31, 2008,
respectively 84 83
Additional paid-in capital 295,155 290,593
Accumulated other comprehensive income 15 260
Accumulated deficit (85,670) (140,805)
——- ——–
Total stockholders’ equity 209,584 150,131
——- ——-
Total liabilities and stockholders’ equity $247,485 $256,792
======== ========

LIMELIGHT NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months Ended
——————
March December March December
31, 31, 31, 31,
2009 2008 2008 2007
—- —- —- —-

Revenue $33,175 $35,898 $30,202 $29,132
Costs and operating expenses
Cost of revenue * + 21,471 21,881 20,672 18,435
General and
administrative * + 12,444 15,550 13,329 7,961
Sales and marketing * 8,139 9,231 8,142 8,619
Research & development * 1,910 2,072 1,590 1,385
Provision for litigation (65,645) 1,295 7,134 48,130
——- —– —– ——
Total costs and operating
expenses (21,681) 50,029 50,867 84,530

Operating income (loss) 54,856 (14,131) (20,665) (55,398)

Interest expense (11) (11) (21) (6)
Interest income 383 669 1,891 2,035
Other income (expense) 227 (375) 170 (177)
— —- — —-

Income (loss) before taxes 55,455 (13,848) (18,625) (53,546)
Income tax expense (benefit) 320 94 (183) 1,799
— — —- —–

Net income (loss) $55,135 $(13,942) $(18,442) $(55,345)
======= ======== ======== ========

Net income (loss) per share:
Basic $0.66 $(0.17) $(0.22) $(0.67)
Diluted $0.64 $(0.17) $(0.22) $(0.67)

Shares used in per share
calculations:
Basic 83,515 83,192 82,623 82,140
Diluted 85,968 83,192 82,623 82,140

* Includes share-based compensation (see supplemental table for figures)

+ Includes depreciation (see supplemental table for figures)

LIMELIGHT NETWORKS, INC.
SUPPLEMENTAL FINANCIAL DATA
(In thousands)
(Unaudited)

Three Months Ended
——————
March December March December
31, 31, 31, 31,
2009 2008 2008 2007
—- —- —- —-
Supplemental financial data
(in thousands):

Share-based compensation:

Cost of revenues $551 $585 $507 $479
General and administrative 2,131 3,028 1,665 1,454
Sales and marketing 1,189 1,262 1,306 1,272
Research and development 616 633 482 420
— — — —

Total share-based compensation $4,487 $5,508 $3,960 $3,625
====== ====== ====== ======

Depreciation and amortization:

Network-related depreciation $6,548 $6,862 $6,013 $5,429
Other depreciation 540 455 247 278
— — — —

Total depreciation and
amortization $7,088 $7,317 $6,260 $5,707
====== ====== ====== ======

Capital expenditures:

Capital expenditures
(cash and accrual) $4,572 $5,151 $3,095 $5,136
====== ====== ====== ======

Net (decrease) increase in
cash, cash equivalents
and marketable securities $(12,660) $(2,015) $(2,475) $3,032
======== ======= ======= ======

End of period statistics:

Approximate number of active
customers 1,365 1,336 1,232 1,157
Number of employees 296 294 244 237

LIMELIGHT NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Three Months Ended
——————
March December March December
31, 31, 31, 31,
2009 2008 2008 2007
—- —- —- —-
Cash flows from operating
activities:
Net income (loss) $55,135 $(13,942) $(18,442) $(55,345)
Adjustments to reconcile
net loss to net cash
(used in) provided by
operating activities:
Depreciation and
amortization 7,088 7,317 6,260 5,707
Share-based compensation 4,487 5,508 3,960 3,625
Deferred income tax
(benefit) expense - (9) (234) 33
Excess tax benefit
related to stock option
exercises - 177 - (1,596)
Provision for litigation (65,645) 1,295 7,134 48,130
(Income) loss on foreign
currency exchange (31) (149) - 42
Accounts receivable
charges 3,288 3,961 1,562 2,268
Accretion of debt discount - - - -
Accretion of marketable
securities - (6) (453) (530)
Loss on marketable
securities - - 55 387
Changes in operating
assets and liabilities:
Accounts receivable (3,840) (6,169) (2,271) (5,243)
Prepaid expenses and
other current assets (593) 1,695 87 1,037
Income taxes receivable (157) 1,480 594 2,742
Other assets (4,311) 32 564 11
Accounts payable (1,223) (531) (4,634) 3,613
Accounts payable,
related parties - - (80) 230
Deferred revenue (822) 416 301 135
Other current liabilities (5,144) 718 5,035 (4,449)
Other long term
liabilities - (770) 1 740
— —- — —
Net cash (used in) provided by
operating activities (11,768) 1,023 (561) 1,537
——- —– —- —–

Cash flows from investing
activities:
Purchases of property
and equipment (754) (3,537) (2,435) (2,081)
Purchase of marketable
securities - - (34,725) 20,300
Sale of marketable
securities 21,300 17,125 44,200 (37,569)
Net cash provided by (used
in) investing activities 20,546 13,588 7,040 (19,350)
—— —— —– ——-

Cash flows from financing
activities:
Escrow funds returned
from share repurchase - - - 1,190
Tax benefits from share-
based compensation - (177) - -
Excess tax benefit
related to stock option
exercises - - - 1,573
Proceeds from exercise
of stock options and
warrants 76 34 107 175
Proceeds from initial
public offering, net of
issuance costs - - - (47)
— — — —
Net cash provided by (used
in) financing activities 76 (143) 107 2,891
— —- — —–
Effect of exchange rate
changes on cash and cash
equivalents (243) 566 (156) (4)
—- — —- —
Net increase (decrease) in cash
and cash equivalents 8,611 15,034 6,430 (14,926)
Cash and cash equivalents,
beginning of period 138,180 123,146 113,824 128,750
——- ——- ——- ——-
Cash and cash equivalents,
end of period $146,791 $138,180 $120,254 $113,824
======== ======== ======== ========

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use Non-GAAP net income and EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure of operating performance. We consider Non-GAAP net income to be an important indicator of overall business performance because it allows us to illustrate the impact of the effects of share-based compensation, litigation expenses and provision for litigation. We define EBITDA as GAAP net income before interest income, interest expense, other income and expense, provision for income taxes, depreciation and amortization. We define EBITDA adjusted for share-based compensation and litigation and damage costs as EBITDA plus expenses that we do not consider reflective of our ongoing operations. We use EBITDA adjusted for share-based compensation and litigation and damage costs as a supplemental measure to review and assess operating performance. We also believe use of EBITDA adjusted for share-based compensation and litigation and damage costs facilitates investors’ use of operating performance comparisons from period to period.

The terms Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Our Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs have limitations as analytical tools, and when assessing our operating performance, Non-GAAP net income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs should not be considered in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:
– EBITDA and EBITDA adjusted for share-based compensation and litigation
and damage costs do not reflect our cash expenditures or future
requirements for capital expenditures or contractual commitments;
– they do not reflect changes in, or cash requirements for, our working
capital needs;
– they do not reflect the cash requirements necessary for litigation
costs;
– they do not reflect the interest expense, or the cash requirements
necessary to service interest or principal payments, on our debt;
– they do not reflect income taxes or the cash requirements for any tax
payments;
– although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will be replaced sometime in
the future, and EBITDA and EBITDA adjusted for share-based
compensation and litigation and damage costs do not reflect any cash
requirements for such replacements;
– while share-based compensation is a component of operating expense,
the impact on our financial statements compared to other companies can
vary significantly due to such factors as the assumed life of the
options and the assumed volatility of our common stock; and
– other companies may calculate EBITDA and EBITDA adjusted for
share-based compensation and litigation and damage costs differently
than we do, limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP Net Income and EBITDA adjusted for share-based compensation and litigation and damage costs only as supplemental support for management’s analysis of business performance. Non-GAAP Net Income, EBITDA and EBITDA adjusted for share-based compensation and litigation and damage costs are calculated as follows for the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the Company is presenting the most directly comparable GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable GAAP measures

LIMELIGHT NETWORKS, INC.
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands)
(Unaudited)

Three Months Ended
——————
March December March December
31, 31, 31, 31,
2009 2008 2008 2007
—- —- —- —-

GAAP net income (loss) $55,135 $(13,942) $(18,442) $(55,345)

Deferred revenue - - - 729
Deferred cost of traffic and
services - - - 21
Provision for litigation (65,645) 1,295 7,134 48,130
Share-based compensation 4,487 5,508 3,960 3,625
Litigation defense expenses 3,945 4,576 5,366 2,772
—– —– —– —–

Non-GAAP net loss $(2,078) $(2,563) $(1,982) $(68)
======= ======= ======= ====

LIMELIGHT NETWORKS, INC.
Reconciliation of GAAP Net Income (Loss) to EBITDA to EBITDA
Adjusted for Share-Based Compensation and Litigation and Damage Costs
(In thousands)
(Unaudited)

Three Months Ended
——————
March December March December
31, 31, 31, 31,
2009 2008 2008 2007
—- —- —- —-

GAAP net income (loss) $55,135 $(13,942) $(18,442) $(55,345)

Add: depreciation and
amortization 7,088 7,317 6,260 5,707
Add: interest expense 11 11 21 6
Less: interest and other income (610) (294) (2,062) (1,858)
Plus income tax (benefit)
expense 320 94 (183) 1,799
— — —- —–
EBITDA 61,944 (6,814) (14,406) (49,691)

Add: provision for litigation (65,645) 1,295 7,134 48,130
Add: share-based compensation 4,487 5,508 3,960 3,625
Add: litigation defense
expenses 3,945 4,576 5,366 2,772
—– —– —– —–

EBITDA adjusted for share-based
compensation, litigation
and damage costs $4,731 $4,565 $2,054 $4,836
====== ====== ====== ======

Conference Call

Management will host a quarterly conference call for investors today beginning at 4:30 p.m. EDT (1:30 p.m. PDT). This call can be accessed toll-free at 1-866-362-4832 within the United States or 1-617.597.5364 outside of the U.S. using Participant Passcode 68176220. The conference call will also be audiocast live from http://www.llnw.com and a replay will be available following the call from the Company’s website.

“We are pleased the Court granted our motion for reconsideration in this matter and ruled in our favor. We have long maintained that we do not infringe the ‘703 patent,” stated Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc. “This ruling affirms that Limelight Networks respects the intellectual property of others, and that our growth and success have been achieved through our own innovation, hard work, and customer-focused operations. We look forward to continued collaboration with our customers and partners as we work to enable a global shift in content consumption from closed to open networks, where consumers can enjoy their desired content whenever, wherever and on whatever connected device they choose.”

The Company expects this ruling to allow it to reverse expenses of approximately $66 million accrued for potential damages and interest.

The Court’s Memorandum and Order, issued on April 24, 2009, cites the standard set forth in the recently decided MuniAuction, Inc. v. Thomson Corp., 532 F.3d 1318 (Fed. Cir. 2008), cert. denied, 2009 WL 578715 (U.S. March 9, 2009) as a key element in deciding to grant Limelight Networks’ motion.

Las Vegas – 20 April 2009 – Limelight Networks, Inc. (NASDAQ: LLNW) today introduced new services and enhancements designed to help content publishers deliver high-quality rich media experiences to web and mobile users. The announcements were made at the NAB 2009 trade show (Stand C155E) held 20-23 April in Las Vegas.

“Limelight Networks is proud to enable some of the most-respected brands, including many of the largest and most innovative broadcasters across the globe, to create brilliant online viewing experiences. At NAB 2009, we’ve strengthened longstanding relationships with key technology providers and enhanced our network platform with new features – all to enable the next wave of rich media experiences on the web and on the go,” said Jeff Lunsford, chief executive officer, Limelight Networks, Inc.

Introduces content delivery services for mobile devices

Limelight Networks announced that the company is currently beta testing its forthcoming content delivery services for mobile with select customers. The new product platform adds mobile device-specific features and parameters into Limelight Networks’ global content distribution platform, enabling content owners to create experiences specifically optimized for the individual capabilities of a mobile device.

There are thousands of different cellular handsets currently in use around the world (and more announced every month), creating a technology burden for content owners who must design individual experiences for each device to which they want to deliver content. With content delivery services for mobile, Limelight Networks aims to streamline the complexity of publishing web content to multiple devices.

Limelight Network’s content delivery services for mobile includes automatic device detection and profiling, and the ability to dynamically resize, repurpose, or simply deliver content most appropriate for the graphics capabilities of any given device.

“Our customers have told us that creating multi-platform content experiences is a key focus area of theirs, and our new content delivery services for mobile address this need by helping them easily publish a rich content experience to any device,” said David Hatfield, senior vice president, Limelight Networks. “We look forward to launching this service later this year, and extending the world-class capabilities of our global delivery platform to the mobile device market.”

“When MobiTV was configuring our platform to deliver live streaming content to the iPhone for our recent Men’s College Basketball application, we worked with Limelight Networks’ robust network and routing capabilities as one component of that experience,” said Kay Johansson, chief technology officer, MobiTV. “Due to the fact that this was a first of its kind application, it was difficult to predict usage patterns. Limelight successfully scaled their network to help us deliver a high volume, high quality service to our customers on this app.”

Limelight Networks expects to announce general availability of the mobile content delivery service in Q3 2009.

Announces support for Microsoft IIS Smooth Streaming

Limelight Networks announced that the company will support Microsoft Internet Information Services 7.0 (IIS) Smooth Streaming, a new technology that gives consumers fast start-up times and minimal buffering by adapting the quality of a video stream in real time based upon changing connectivity speed. When combined with the global presence and scale of Limelight Networks’ content delivery service, IIS Smooth Streaming will provide a consistent, broadcast-quality online experience to Internet video audiences around the world.

“Limelight Networks has a long history of support for Microsoft Silverlight, operating an industry-leading Windows Media Services delivery platform. Last summer, Microsoft and Limelight Networks showed the world what Silverlight technology is capable of by flawlessly delivering more than 3,000 hours of Beijing Olympics coverage to millions of broadband households,” said Eddie Amos, general manager of the Developer Division at Microsoft Corp. “IIS Smooth Streaming is one of Microsoft’s newest innovations, and we are pleased to continue our longstanding relationship with Limelight by supporting their launch of a next-generation Silverlight media experience.”

Limelight Networks expects general availability of Microsoft IIS Smooth Streaming during Q2 2009.

Announces support for Adobe® Flash® Media Server 3.5

Limelight Networks announced that the company will support Adobe Flash Media Server 3.5 live and on-demand technologies. The new servers provide publishers with new options for the delivery of content, such as: dynamic streaming; enhanced H.264 video and High Efficiency AAC (HE-AAC) audio support; and the ability to pause and seek within a live stream.

Limelight Networks expects general availability of Adobe Flash Media Server 3.5 on-demand technologies during Q2 2009 and live streaming during Q3 2009.

Selected by Casio to deliver digital camera product micro-site

Limelight Networks announced that Casio has named the company as the exclusive delivery provider for the EXILIM™ digital camera product micro-site, www.exilim.com. The web site offers visitors product demonstrations including a unique 360-degree “product viewer” application that enables visitors to rotate a product to see it at different viewing angles. Limelight Networks will provide Casio with whole-site acceleration for rich media and text elements.

Limelight Networks previously announced LimelightSITE™ - a one-stop, whole site delivery solution that enables global 2000 enterprise, e-commerce, and financial brands to accelerate the performance and lower the unit cost of delivering static, dynamic, and rich media content from their web site. For a video about Limelight Networks’ services for the enterprise, visit the Limelight Networks Resource Center.

Unveils feature upgrades to global delivery platform

Limelight Networks introduced new features available to customers currently using its network services, including:
A new cross-platform (Windows™, Mac OS™, Linux) download manager for the electronic delivery of software and other content. The manager can easily be branded, supports multiple concurrent downloads, provides end-users with pause/restart and bandwidth management capabilities at the desktop. Limelight Networks estimates that the company delivers over 2 billion downloads of files sized 5MB or larger each month.
An enhanced SLA reporting option in the LimelightEXCHANGE customer portal, which provides customers the ability to monitor network/CDN performance and storage data specific to their account.
An option for customers to serve GZIP-compressed content without having to pre-compress files using their storage servers.

TEMPE, Ariz., March 31 /PRNewswire-FirstCall/ — Limelight Networks, Inc. (Nasdaq: LLNW - News) today introduced LimelightSITE, a new service that can increase visitor loyalty, reduce operating costs, and provide a consistent web experience from any geography. The service, currently in use by over 100 customers in the enterprise, e-commerce, financial, and public sectors, is designed to accelerate the performance and lower the unit cost of delivering static, dynamic, and rich media content.

“Everyday, more enterprises are deploying interactive and dynamic content assets to build stronger customer relationships. With LimelightSITE, we are enabling this growing business trend with a new service that accelerates whole web site delivery with the same quality and performance as the rich media services for which Limelight Networks is already known and respected,” said David Hatfield, senior vice president, Limelight Networks, Inc.

LimelightSITE speeds the delivery of web sites by sending content at “CDN speed” - directly from the edge to the end-user without routing it over the often congested, public Internet. This is accomplished using Limelight Networks’ global platform, which directly connects over 9 petabytes of storage capacity to over 900 last-mile access networks around the world.

Additionally, LimelightSITE speeds the retrieval of site objects from a data center using Limelight OriginDirect(TM) routing technology. This technology helps to bypass “middle-mile” Internet bottlenecks by routing requests over Limelight Networks’ private, global fiber-optic backbone. Additionally, Limelight Networks offers an option for customers to directly connect their originating servers to this backbone. By avoiding the public Internet, OriginDirect enables a highly reliable, direct path to an originating server for retrieving static, dynamic, cacheable, or uncacheable content.

For marketers, LimelightSITE can help establish a more effective one-to-one relationship with customers, partners, and prospects. The service makes it easy to create community or engage in two-way dialogues with customers by incorporating social networking, customer-generated video, on-demand training modules, live corporate events, or rich web applications into a micro-site or online brand presence - without the traditional trade-off of slower site performance. Improving web site experience can also increase return-on-investment by reducing other costs: for example, self-serve training videos can reduce call center volume while increasing customer satisfaction.

For IT departments, LimelightSITE can reduce internal network infrastructure and build-out costs while keeping valuable internal resources focused on important business priorities. Site operators can offload storage, delivery, management, and network optimization functions to Limelight Networks’ global, scalable, high-performance edge hosting platform and benefit from increased site availability.

Features of the LimelightSITE package include:
Five terabytes transfer per month or 150 MBits/second throughput
Fast retrieval of content over Limelight Networks’ private fiber-optic backbone using OriginDirect technology
Direct object delivery to over 900 last mile networks through Limelight Networks’ global platform
Redundant storage services, up to 250 GB
Small-object optimization, including persistent connections, object compression, and TTL overrides
Site protection features, including origin failover and load balancing
Advanced reporting and management through the LimelightEXCHANGE Premium™ portal, including aggregation reports and RSYNC services

Limelight Networks also offers additional services and products for the enterprise customer, including LimelightPS™ integration and professional services, which provides capabilities for designing, building and managing best-in-class web infrastructure; LimelightSUPPORT Premium™, which provides expedited access to the services of one or more dedicated tier-two engineers; SSL support for secure delivery of content; a download manager for electronic software distribution; and a cache fill optimizer that provides on-network connectivity for originating servers.

LimelightSITE will be available in April 2009. Visit the Limelight Networks Resource Center for a video discussion with David Hatfield, quoted in this release, about Limelight Networks’ services for the enterprise.

“This relationship with Limelight Networks will help PBS and our member stations offer extensive video programming online,” said Jason Seiken, senior vice president of PBS Interactive.

PBS is comprised of 356 member stations, reaching more than 115 million people on-air and online. This relationship between Limelight Networks and PBS will help ensure local stations, even those with limited resources, have the opportunity to more widely distribute their original content online, bringing more value to their users than ever before. It will also help provide viewers with access to national content directly from the website of their local PBS station. Stations already using the new platform include KPSD South Dakota, WNET New York, and WQED Pittsburgh.

“As audiences continue to use the Internet as a means to enjoy video on-demand, it is important that television networks prepare their sites accordingly to meet that demand for content,” said David Hatfield, senior vice president, Limelight Networks, Inc. “We’re excited to be working with PBS on a national and local level to provide on-demand resources that can quickly scale to accommodate broadcast-quantity audiences, while providing the best viewing experience possible.”

TEMPE, Ariz., Feb. 26 /PRNewswire-FirstCall/ — Limelight Networks, Inc. (Nasdaq: LLNW) today reported fourth-quarter and full-year 2008 financial results.

“Limelight Networks achieved strong sequential and year-over-year revenue growth in the fourth quarter. Consumers and businesses continue to migrate online to source information, enjoy entertainment media, and conduct commerce. With our robust network-based architecture and disciplined operations, we believe we are well-positioned to capitalize on this long-term trend and grow our business in 2009 even amidst challenging times,” commented Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc.

Financial Highlights

For the fourth quarter of 2008, the company reported revenue of $36 million, up 23 percent from $29 million in the same period last year, and a net loss of $14 million, or 17 cents per basic share.

Non-GAAP net loss, adjusted for certain charges, was $2.6 million or 3 cents per basic share. The non-GAAP loss of 3 cents per basic share excludes a charge of 6 cents per basic share related to litigation and potential damage cost accruals, and 7 cents per basic share of share-based compensation. EBITDA, adjusted for share-based compensation, litigation and potential damage cost accruals, was $4.6 million. Capital purchases incurred were $5.2 million. The Company ended the quarter with no bank debt and approximately $175 million in cash and short-term marketable securities.

For the full year 2008, the company reported revenue of $130 million with a net loss of 76 cents per basic share. Non-GAAP net loss, adjusted for certain charges, was $6.7 million, or 8 cents per basic share.

A reconciliation of GAAP to non-GAAP net income is included in the attached tables.

First-Quarter Outlook

Limelight Networks anticipates first-quarter revenue to be in the range of $32 million to $33 million.
Financial Tables

LIMELIGHT NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

December 31, December 31,
2008 2007
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $138,180 $113,824
Marketable securities 36,463 83,273
Accounts receivable, net of reserves of
$7,565 and $4,022 at December 31, 2008

and 2007, respectively 33,482 21,407
Income taxes receivable 7 1,960
Prepaid expenses and other current assets 7,834 4,469
Total current assets 215,966 224,933
Property and equipment, net 40,185 46,968
Marketable securities, less current portion 13 87
Other assets 628 1,440
Total assets $256,792 $273,428

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable $8,920 $8,523
Accounts payable, related parties - 230
Deferred revenue, current portion 9,865 4,237
Provision for litigation 65,645 48,130
Other current liabilities 14,928 9,312
Total current liabilities 99,358 70,432
Deferred revenue, less current portion 7,303 8,189
Other long-term liabilities - 770
Total liabilities 106,661 79,391
Commitments and contingencies - -
Stockholders’ equity:
Convertible preferred stock, $0.001
par value; 7,500 shares authorized;
0 shares issued and outstanding - -
Common stock, $0.001 par value;
150,000 shares authorized; 83,406
and 82,541 shares issued and
outstanding at December 31, 2008
and December 31, 2007, respectively 83 83
Additional paid-in capital 290,593 271,586
Accumulated other comprehensive income 260 106
Accumulated deficit (140,805) (77,738)
Total stockholders’ equity 150,131 194,037
Total liabilities and stockholders’ equity $256,792 $273,428

LIMELIGHT NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

Three Months Ended

December September December September
31, 2008 30, 2008 31, 2007 30, 2007

Revenue $35,898 $33,116 $29,132 $29,190
Costs and operating expenses
Cost of revenue * o 21,881 21,557 18,435 17,773
General and administrative * o 15,550 15,455 7,961 8,117
Sales and marketing * 9,231 8,577 8,619 7,421
Research & development * 2,072 2,008 1,385 1,294
Provision for litigation 1,295 2,343 48,130 -
Total costs and operating expenses 50,029 49,940 84,530 34,605

Operating loss (14,131) (16,824) (55,398) (5,415)

Interest expense (11) (11) (6) (18)
Interest income 669 1,203 2,035 2,456
Other income (expense) (375) 410 (177) 33

Loss before taxes (13,848) (15,222) (53,546) (2,944)
Income tax expense 94 130 1,799 181

Net income loss $(13,942) $(15,352) $(55,345) $(3,125)

Net loss per share:
Basic $(0.17) $(0.18) $(0.67) $(0.04)
Diluted $(0.17) $(0.18) $(0.67) $(0.04)

Shares used in per share calculations:
Basic 83,192 83,022 82,140 82,045
Diluted 83,192 83,022 82,140 82,045

Twelve Months Ended

December 31, December 31,
2008 2007

Revenue $129,530 $103,111
Costs and operating expenses
Cost of revenue * o 83,861 65,541
General and administrative * o 53,796 32,684
Sales and marketing * 34,916 25,462
Research & development * 7,365 5,504
Provision for litigation 17,515 48,130
Total costs and operating expenses 197,453 177,321

Operating loss (67,923) (74,210)

Interest expense (55) (1,418)
Interest income 5,098 5,153
Other income (expense) (171) (144)

Loss before taxes (63,051) (70,619)
Income tax expense 16 2,401

Net income loss $(63,067) $(73,020)

Net loss per share:
Basic $(0.76) $(1.26)
Diluted $(0.76) $(1.26)

Shares used in per share calculations:
Basic 82,932 57,982
Diluted 82,932 57,982

* Includes share-based compensation (see supplemental table for figures)
o Includes depreciation (see supplemental table for figures)

LIMELIGHT NETWORKS, INC.
SUPPLEMENTAL FINANCIAL DATA
(In thousands)
(Unaudited)

Three Months Ended

December September December September
31, 2008 30, 2008 31, 2007 30, 2007
Supplemental financial
data (in thousands):

Share-based compensation:

Cost of revenues $585 $594 $479 $422
General and administrative 3,028 1,669 1,454 1,702
Sales and marketing 1,262 1,400 1,272 1,289
Research and development 633 642 420 542

Total share-based compensation $5,508 $4,305 $3,625 $3,955

Depreciation and amortization:

Network-related depreciation $6,862 $6,607 $5,429 $5,602
Other depreciation 455 343 278 268

Total depreciation and
amortization $7,317 $6,950 $5,707 $5,870

Capital expenditures:

Capital expenditures (cash and
accrual) $5,151 $6,803 $5,136 $7,291

Net increase (decrease) in cash,
cash equivalents and marketable
securities $(2,015) $(7,844) $3,032 $6,370

End of period statistics:

Number of customers under recurring
contract 1,336 1,304 1,157 988
Number of employees 294 285 237 218

Twelve Months Ended

December 31, December 31,
2008 2007
Supplemental financial data (in thousands):

Share-based compensation:

Cost of revenues $2,243 $1,489
General and administrative 8,060 10,653
Sales and marketing 5,400 3,948
Research and development 2,355 2,820

Total share-based compensation $18,058 $18,910

Depreciation and amortization:

Network-related depreciation $25,675 $20,739
Other depreciation 1,356 857

Total depreciation and amortization $27,031 $21,596

Capital expenditures:

Capital expenditures (cash and accrual) $20,062 $26,771

Net increase (decrease) in cash, cash
equivalents and marketable securities $(22,528) $189,288

End of period statistics:

Number of customers under recurring contract 1,336 1,157
Number of employees 294 237

LIMELIGHT NETWORKS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Three Months Ended

December September December September
31, 2008 30, 2008 31, 2007 30, 2007

Cash flows from operating
activities:
Net loss $(13,942) $(15,353) $(55,345) $(3,125)
Adjustments to reconcile net
loss to net cash provided by
(used in) operating activities:
Depreciation and amortization 7,317 6,950 5,707 5,870
Share-based compensation 5,508 4,305 3,625 3,955
Deferred income tax (benefit)
expense (779) 129 33 (294)
Excess tax benefit related to
stock option exercises - - (1,596) -
Provision for litigation 1,295 2,343 48,130 -
Loss (income) on foreign
currency exchange (149) (30) 42 -
Accounts receivable charges 2,563 1,802 2,268 1,689
Accretion of debt discount - - - -
Accretion of marketable
securities (6) 11 (530) (277)
Loss on marketable securities - - 387 -
Changes in operating assets
and liabilities:
Accounts receivable (4,771) (11,006) (5,243) 1,202
Prepaid expenses and other
current assets 1,695 417 1,037 (143)
Income taxes receivable 1,480 8 2,742 412
Other assets 32 153 11 (153)
Accounts payable (531) 2,348 3,613 (1,883)
Accounts payable, related
parties - 230 (19)
Deferred revenue 416 4,799 135 8,462
Other current liabilities 718 3,555 (4,449) 2,009
Other long term liabilities - (64) 740 -
Net cash provided by (used in)
operating activities 846 367 1,537 17,705

Cash flows from investing activities:
Purchases of property and
equipment (3,537) (7,870) (2,081) (12,094)
Purchase of marketable
securities - 20,300 (43,411)
Sale of marketable securities 17,125 16,000 (37,569) 7,000
Net cash provided by (used in)
investing activities 13,588 8,130 (19,350) (48,505)

Cash flows from financing activities:
Payments on credit facilities - - - -
Borrowings on line of credit - - - -
Payments on line of credit - - - -
Payments on capital lease
obligations - - - -
Escrow funds returned from
share repurchase - - 1,190 1,029
Excess tax benefit related to
stock option exercises - - 1,573 -
Proceeds from exercise of
stock options and warrants 34 31 175 4
Proceeds from initial public
offering, net of issuance costs - - (47) (586)
Net cash provided by financing
activities 34 31 2,891 447
Effect of exchange rate changes
on cash and cash equivalents 566 (223) (4) -
Net increase (decrease) in cash
and cash equivalents 15,034 8,305 (14,926) (30,353)
Cash and cash equivalents,
beginning of period 123,146 114,841 128,750 159,103
Cash and cash equivalents, end of
period $138,180 $123,146 $113,824 $128,750

Twelve Months Ended

December 31, December 31,
2008 2007
Cash flows from operating activities:
Net loss $(63,067) $(73,020)
Adjustments to reconcile net loss
to net cash provided by (used in)
operating activities:
Depreciation and amortization 27,031 21,596
Share-based compensation 18,058 18,910
Deferred income tax (benefit) expense (861) 318
Excess tax benefit related to stock
option exercises - (1,596)
Provision for litigation 17,515 48,130
Loss (income) on foreign currency
exchange (167) 42
Accounts receivable charges 7,852 5,805
Accretion of debt discount - 424
Accretion of marketable securities (427) (805)
Loss on marketable securities 71 387
Changes in operating assets and
liabilities:
Accounts receivable (19,928) (9,686)
Prepaid expenses and other
current assets (2,253) (1,458)
Income taxes receivable 1,953 2,616
Other assets 816 (687)
Accounts payable (2,890) (1,982)
Accounts payable, related parties (230) (551)
Deferred revenue 4,742 12,229
Other current liabilities 5,448 3,595
Other long term liabilities - 740
Net cash provided by (used in)
operating activities (6,337) 25,007

Cash flows from investing activities:
Purchases of property and equipment (18,073) (22,731)
Purchase of marketable securities (65,125) (109,570)
Sale of marketable securities 112,150 27,300
Net cash provided by (used in)
investing activities 28,952 (105,001)

Cash flows from financing activities:
Payments on credit facilities - (23,818)
Borrowings on line of credit - 1,500
Payments on line of credit - (1,500)
Payments on capital lease obligations - (250)
Escrow funds returned from share
repurchase 1,070 4,607
Excess tax benefit related to stock
option exercises - 1,596
Proceeds from exercise of stock options
and warrants 225 211
Proceeds from initial public offering,
net of issuance costs - 203,865
Net cash provided by financing activities 1,295 186,211
Effect of exchange rate changes on cash and
cash equivalents 446 (4)
Net increase (decrease) in cash and cash
equivalents 24,356 106,213
Cash and cash equivalents, beginning of
period 113,824 7,611
Cash and cash equivalents, end of period $138,180 $113,824

LIMELIGHT NETWORKS, INC.
Reconciliation of GAAP Revenue to Non-GAAP Revenue
(In thousands)
(Unaudited)

Three Months Ended

December September December September
31, 2008 30, 2008 31, 2007 30, 2007

GAAP revenue $35,898 $33,116 $29,132 $29,190

Deferred traffic revenue - - - (2,645)

Deferred custom CDN services - - 729 1,504

Non-GAAP revenue $35,898 $33,116 $29,861 $28,049

Twelve Months Ended

December 31, December 31,
2008 2007

GAAP revenue $129,530 $103,111

Deferred traffic revenue - -

Deferred custom CDN services - 3,053

Non-GAAP revenue $129,530 $106,164

LIMELIGHT NETWORKS, INC.
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands)
(Unaudited)

Three Months Ended

December September December September
31, 2008 30, 2008 31, 2007 30, 2007

GAAP net loss $(13,942) $(15,352) $(55,345) $(3,125)

Deferred revenue - - 729 (1,141)
Deferred cost of traffic and services - - 21 649
Provision for litigation 1,295 2,343 48,130 -
Share-based compensation 5,508 4,305 3,625 3,955
Litigation defense expenses 4,576 8,189 2,772 2,002

Non-GAAP net (loss) income $(2,563) $(515) $(68) $2,340

Twelve Months Ended

December 31, December 31,
2008 2007

GAAP net loss $(63,067) $(73,020)

Deferred revenue - 3,053
Deferred cost of traffic and services - (265)
Provision for litigation 17,515 48,130
Share-based compensation 18,058 18,910
Litigation defense expenses 20,799 7,295

Non-GAAP net (loss) income $(6,695) $4,103

LIMELIGHT NETWORKS, INC.
Reconciliation of GAAP Net Income (Loss) to EBITDA to Adjusted EBITDA
(In thousands)
(Unaudited)

Three Months Ended

December September December September
31, 2008 30, 2008 31, 2007 30, 2007

GAAP net loss $(13,942) $(15,352) $(55,345) $(3,125)

Add: depreciation and
amortization 7,317 6,950 5,707 5,870
Add: interest expense 11 11 6 18
Less: interest and other income (294) (1,613) (1,858) (2,490)
Plus income tax (benefit) expense 94 130 1,799 181
EBITDA (6,814) (9,874) (49,691) 454
Add: deferred revenue - - 729 (1,141)
Add: provision for litigation 1,295 2,343 48,130 -
Add: share-based compensation 5,508 4,305 3,625 3,955
Add: litigation defense
expenses 4,576 8,189 2,772 2,002
Less: deferred traffic and
service costs - - (21) (649)

Adjusted EBITDA $4,565 $4,963 $5,586 $5,919

Twelve Months Ended

December 31, December 31,
2008 2007

GAAP net loss $(63,067) $(73,020)

Add: depreciation and amortization 27,031 21,596
Add: interest expense 55 1,418
Less: interest and other income (4,927) (5,009)
Plus income tax (benefit) expense 16 2,401
EBITDA (40,892) (52,614)
Add: deferred revenue - 3,053
Add: provision for litigation 17,515 48,130
Add: share-based compensation 18,058 18,910
Add: litigation defense expenses 20,799 7,295
Less: deferred traffic and service costs - 265

Adjusted EBITDA $15,480 $24,509

Conference Call

Management will host a quarterly conference call for investors beginning at 8:00 a.m. ET (5 a.m. PT) on February 26, 2009. This call can be accessed toll-free at 1-866-272-9941 within the United States or 1-617-213-8895 outside of the U.S. using Conference ID 76676134.

Safe-Harbor Statement

This press release contains forward-looking statements concerning, among other things, the outlook for the Company’s revenues, net loss and stock-based compensation expense for the first quarter of 2009, customer growth, market growth, pricing pressures, expansion into additional market segments, product and services improvements and litigation and related expenses. Forward-looking statements are not guarantees and are subject to a number of risks and uncertainties that could cause actual results to differ materially including, but not limited to, risks and uncertainties discussed in the Company’s Annual Report on Form 10K and other filings with the Securities and Exchange Commission and the final review of the results and amendments and preparation of quarterly financial statements, including consultation with our outside auditors. Accordingly, readers are cautioned not to place undue reliance on any forward-looking statements. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason.
* Source: Frost & Sullivan, Worldwide Content Delivery Markets, January
2009

Mr. Lunsford’s presentation will begin at approximately 11:00am Pacific Standard Time, U.S.A., on Thursday, 26 February 2009. Investors may listen to the live webcast of the presentation through the company’s website at www.llnw.com .

Management will host a quarterly conference call for investors beginning at 8:00 a.m. ET (5 a.m. PT). This call can be accessed toll-free at 1-866-272-9941 within the United States or 1-617-213-8895 outside of the U.S. using Conference ID 76676134.

The conference call will also be audiocast live at http://www.llnw.com and a replay will be available for one week following the call from the Company’s website.

The jury found that Limelight does not infringe any asserted claims of the patents at issue.

“We are pleased with the jury verdict in this matter, which is a positive development for our shareholders, employees, customers, and partners. This decision affirms that Limelight Networks respects the intellectual property of others, and that our ability to fairly compete in the marketplace is due to our own hard work and innovation,” stated Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc.

The company reported that the overwhelming majority of viewers joined a live video stream just before Obama began his inaugural address. Audience members remained connected to the live stream for almost the entirety of Obama’s speech.

“Today’s inauguration is an example of the global power of the Internet as a platform to unite. Like never before, people from around the world joined together to experience this historic moment,” said Nathan Raciborski, chief technical officer and co-founder, Limelight Networks, Inc.”Such a powerful, unifying event was exactly what we envisioned eight years ago when we launched our innovative, network-based CDN, and we are pleased that our platform played such a major role in delivering today’s ceremony to the world.”

The robust and scalable infrastructure of Limelight Network’s content delivery service was engineered to meet the challenges of delivering rich media to today’s Internet users, by accounting for the four dimensions of content delivery: increasing files size, expanding content libraries, ever-growing audience size, and the immediate availability of every library object, regardless of popularity.

“Jeff Fisher brings a wealth of leadership experience including financial leadership roles at complex, technology-intensive businesses, media companies and service-oriented organizations. We are pleased to add a capable director like JT, who will contribute to the continued success of our growing company,” said Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc.

Mr. Fisher served as executive vice president and chief financial officer of Charter Communications from 2006-2008. Prior to joining Charter, Mr. Fisher held a variety of senior management positions for Delta Air Lines, Inc. from 1997-2006. He served as head of Delta’s Corporate Restructuring Group, and previously held the positions of president and general manager, and separately, chief financial officer, for Delta Connection, Inc., the world’s largest group of regional airline companies. Mr. Fisher received a B.B.M. degree from Embry Riddle University, and an M.B.A. from the University of Texas in Arlington.

Mr. Fisher will also join Limelight’s audit committee, which will enable the company to again meet the requirement set forth in Nasdaq Marketplace Rule 4350(d)(2)(A), which provides that an audit committee must be comprised of at least three independent directors. Mr. Fisher’s appointment brings the total number of directors on Limelight Networks’ board to 8.

TEMPE, Ariz., Oct. 16 /PRNewswire-FirstCall/ — Limelight Networks, Inc. (Nasdaq: LLNW) today marked the beginning of the ‘broadcast quantity’ era for content delivery networks with the announcement that the company’s global content delivery capacity has exceeded two terabits per second (Tbps).

The announcement was made at the Digital Media Innovation Forum, 15-17 October, Phoenix, AZ.

Two terabits per second is roughly the raw capacity required to deliver content to the equivalent of four Nielsen ratings points of audience.* Even taking network overhead into account, this milestone means Limelight’s capacity could support delivering broadcast-quality content to over two million simultaneous Internet users.

A ‘broadcast quantity’ CDN meets the challenge of maintaining high- fidelity for every piece of content delivered, even as the audience that could potentially view that content grows significantly. Recently, comScore reported that more than 142 million U.S. Internet users watched 11.4 billion videos for a total duration of 558 million hours during July 2008,** and 27.4 million U.K. Internet users watched 3.2 billion videos for an average of 117.7 videos per viewer during June 2008.

“As global traffic and audience numbers continue to grow, the challenge for delivery networks has changed from delivering a single piece of content to an audience of millions, to simultaneously delivering a million different pieces of content to a million different viewers. Viewers’ expectations are defined by their experience from broadcast TV, so delivery networks are being called on to deliver ever higher levels of visual fidelity. These services are more engaging for viewers, and this in turn helps monetize the content,” said Jim Davis, senior analyst, Tier 1 Research.

Limelight Networks’ unique approach to maximizing the delivery of content is to store a publisher’s entire content library logically close to the end user, so content is delivered without traversing the congested public Internet. This is accomplished by directly connecting over eight petabytes of storage to over 900 last mile access networks, through a fiber-optical connection maintained by the company. The end result is a brilliant user experience for every element of content delivered.

“This milestone of two terabits per second of network capacity represents the beginning of a new era in the content delivery industry. While Limelight Networks’ architecture has always ensured a broadcast quality experience, today’s milestone demonstrates that we can deliver broadcast quantity entertainment — thousands of programs to global Internet audiences that are measurable in Nielson ratings points,” said Nathan Raciborski, chief technical officer, Limelight Networks. “As more viewers use the web as a primary entertainment vehicle, we will continue to scale and expand our architecture to ensure these broadcast quantity audiences receive engaging, high-quality experiences.”

For over seven years, the Limelight Networks content delivery service has powered some of the largest and most complex events in the history of the Internet. From supporting hundreds of thousands of simultaneous users for Oprah’s online book club, to delivering over 70 million video streams for NBCOlympics.com on MSN, to enabling interactive content and game downloads for each of the three major gaming console manufacturers, Limelight has consistently delivered content in the brilliance the publisher intended it to be seen.

“We’re pleased to add a talented financial executive like Doug to the Limelight management team. Doug brings extensive experience in building global technology companies, and will provide us with the perfect blend of operational and financial skills to help guide Limelight Networks’ growth as we continue to scale our operations to meet the growing demand for Internet content delivery,” said Jeff Lunsford, chairman and chief executive officer.

“It is an honor to join Limelight Networks, a growing company in an emerging market space. Through my time on the board, I have learned about the opportunities for this business and have been involved in its strategic planning initiatives. These experiences will benefit me greatly as I take on this new position,” said Lindroth.

Mr. Lindroth, 41, has served as a member of Limelight’s board of directors since February 2008, but will resign his board position upon assuming the role of CFO. The company will immediately begin a search for an independent director to fill this vacancy.

Prior to joining Limelight Networks, Mr. Lindroth served as a General Partner of Bayview Investment Company. He is a member of the Board of Directors of BakBone Software Incorporated, a developer and distributor of data backup, restoration, disaster recovery, replication and storage reporting software, where he also served as Chief Financial Officer from April 2007 to May 2007. From 1997 through February 2006, Mr. Lindroth served in various capacities for Memec Group Holdings Limited, a privately held company and a specialty semiconductor distributor, including as its Chief Financial Officer beginning in 2003.

Management will host a quarterly conference call for investors beginning at 2:00 p.m. PT (5 p.m. ET). This call can be accessed toll-free at 1-866-761-0748 within the United States or 1-617-614-2706 outside of the U.S using Conference ID 89097839.

The conference call will also be audiocast live at http://www.llnw.com and a replay will be available following the call from the Company’s website.

TEMPE, Ariz., Sept. 17 /PRNewswire-FirstCall/ — Limelight Networks, Inc., (Nasdaq: LLNW) today announced that it will host its second annual rich media summit, the 2008 Digital Media Innovation Forum (http://www.dminnovationforum.com/). The event will take place at the Desert Ridge Resort and Spa in Phoenix on 15-17 October 2008.

With the theme “Innovation: From Creation to Consumption,” the three-day event will feature senior-level executives from the content publishing, technology, and telecom sectors discussing the opportunities and challenges in building a scalable and profitable online business.

“With 75 percent of the U.S. Internet audience now viewing online video*, and international Internet traffic growing 53 percent between mid-2007 and mid-2008**, it’s important to understand how to capitalize on this explosive growth of rich media,” said Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc. “At the Digital Media Innovation Forum, we are gathering leaders from the entire content ecosystem to discuss and forecast the evolution of digital media and its effect on online business models.”

Featured speakers will include senior-level executives from Adobe, Accenture Digital Media Services, Associated Press, CNET Networks, Disney.com, Forrester Research, Fox Interactive Media, MTV, Microsoft, Motorola, and Veoh Networks. Attendees will learn about trends and innovations that are impacting their companies and reshaping the digital media landscape. Presentations and panel discussions will address topics and trends in entertainment, social media and e-commerce. Forum sessions include:

The future of digital media
The six secrets of successful rich media
Creating engaging online experiences
How to meet the needs of today’s “me-focused” online audience
Emerging solutions for contextual video advertising
Understanding next-generation mobile media consumption

The forum will not only provide insight into the opportunities and challenges in online business, it will present real-life case-study solutions to these challenges. For example, attendees will get a behind-the-scenes look at large-scale Internet event delivery through a case study on the largest online event in history, the 2008 Summer Games.

For more details on the conference and registration information, please visit the 2008 Digital Media Innovation Forum Web site at http://www.dminnovationforum.com. Journalists wishing to attend can request access by emailing palfieri at llnw dot com.

“We are pleased to work with Limelight Networks and Adobe to bring the revolutionary M6Replay service to our customers,” said Valery Gerfaud, Metropole, CEO M6 Web. “The scale and reliability of Limelight Networks’ content delivery offering, combined with the reliability and quality of Adobe Flash technology, provides us with a solid foundation to build an unparalleled user experience.”

The new service, located at http://www.M6Replay.fr, will let French viewers “catch up” on television programming they may have missed, by making replays for popular programs available online, including Prison Break, NCIS, and others. Shows will be streamed using Adobe Flash Media Server 3 software via the LimelightSTREAM service. By using Adobe Flash technology, Metropole is tapping into the number one format for video on the web, with 73% of online videos worldwide viewed using Adobe’s popular technology.

Limelight’s use of Adobe Flash Media Server 3 software means that customers can expect nearly double the previous performance than previous versions, as well as industry-standard H.264 video codec and AAC+ audio codec support, and increased protection for streamed media. In addition, streaming performance gains in the latest version of Adobe Flash Media Server are significant, allowing more streams and more users per server, helping to lower overall deployment costs.

Limelight Networks will also store the past 7 days of content in its highly secured data centers throughout Europe using Limelight MediaVault for Adobe Flash Media Server 3. Limelight MediaVault protects content from abuse by spiders, bots, and deep linking by enabling customers to generate a unique URL for the location of their content. These URLs can be set to expire after a certain period of time, so that even if another site were to embed the link, it would no longer be functional. Additionally, M6 will use Limelight’s geocompliance technologies to ensure content is only delivered to viewers in regions where M6 has rights to deliver it.

“We are pleased to add one of the largest content publishers in the world to the list of companies using Adobe Flash technology,” said Jim Guerard, vice president and general manager of Dynamic Media for Adobe. “Together with our longstanding partner Limelight Networks, Adobe is enabling M6 to bring high-quality Internet television viewing experiences to millions of French viewers.”

“The lines between offline television and online viewing are blurring, and the M6 Replay service is the latest example of publishers embracing the Internet as a viable delivery mechanism,” said David Hatfield, senior vice president of products, marketing, and sales, Limelight Networks, Inc. “By combining industry-leading support for Adobe Flash technologies with our global scale and European presence, Limelight Networks is providing a world-class platform for M6 to deliver this unique experience.”
About Metropole Television Group

Created in 1987 with the channel M6, Metropole Television Group now offers a wide range of products and services multi-media. In television, it affects large audiences through its family of channels organized around M6, second commercial channel market, and complements each other in terms editorials. Attendance on as many broadcast platforms, channels ensure enhance the content of the group with viewers. With its brands and audiovisual products, the M6 group has developed gradually many activities diversification which today almost half of its turnover. With the “digital revolution”, it is now firmly entered into new technologies such as mobile phone or the Internet, while still present in the press, cinema, video.

“We are pleased to be enabling a great user experience for the highly successful Wii console, and to be working with such a respected global gaming brand as Nintendo,” said Shinji Tsukamoto, vice president, Limelight Networks, Inc. “Limelight Networks is now delivering content and providing services for all three major gaming platforms around the world.”

The robust and scalable infrastructure of Limelight Network’s CDN was engineered to deliver rich media experiences to today’s Internet users, by meeting the challenge of the four dimensions of content delivery: increasing object size, increasing entire content libraries, addressing ever-growing audience size, and realizing the immediate availability of every library object, regardless of popularity.

On September 4th at 10am Eastern Daylight Time (EDT), Mr. Hale will present at the Kaufman Bros. 11th Annual Fall Conference in New York City. On September 11th at 11:45 am EDT, Mr. Hale will present at the Jefferies 2nd Annual Technology Conference.

Investors may listen to the live webcast of both presentations through the company’s website at http://www.llnw.com.

- Expanded customer base to approximately 1,300

- Selected by Microsoft as the primary provider of content delivery services for video content on NBCOlympics.com on MSN

TEMPE, Ariz., Aug. 12 /PRNewswire-FirstCall/ — Limelight Networks, Inc. (Nasdaq: LLNW) today reported second-quarter 2008 revenue of $30.3 million and a net loss of $15.3 million, or 18 cents per basic share. Non-GAAP net loss, adjusted for certain charges, was $1.6 million or 2 cents per basic share. EBITDA, adjusted for share-based compensation, litigation and potential damage cost accruals, was $3.9 million. The non-GAAP loss of 2 cents per basic share excludes a charge of 11 cents per basic share related to litigation and potential damage cost accruals, and 5 cents per basic share of share-based compensation.

Reconciliation of GAAP to non-GAAP net income is included in the attached tables.

“We are pleased with our rapid traffic growth and continued progress on network expansion in the second quarter,” commented Jeff Lunsford, chairman and chief executive officer, Limelight Networks, Inc. “Limelight Networks continues to be well-positioned as a delivery partner of choice for the largest live and on-demand events in the online world.”

Limelight Networks expanded its customer base to approximately 1,300 in the second quarter. The company also continued to build out its network transmission capacity, and expects to achieve 2 terabits per second of capacity during Q3 2008.

Financial Highlights

Second-quarter revenue was $30.3 million, up 22 percent from $24.9 million of non-GAAP revenue in the year-ago second quarter and above the range of guidance previously provided by the Company. Capital purchases were $5.0 million. The Company ended the quarter with no debt and approximately $184 million in cash and short-term marketable securities.

Third-Quarter Outlook

Limelight Networks anticipates third-quarter revenue to be in the range of $30 million to $32 million. The Company also expects substantially reduced potential damage accruals of under $1.0 million related to ongoing litigation.

Conference Call and Web Audiocast

Management will host a quarterly conference call for investors on August 12, 2008 beginning at 2:00 p.m. PDT (5 p.m. EDT). This call can be accessed toll-free at 1-866-713-8562 within the United States or 1-617-597-5310 outside of the U.S. using Conference ID 72650354.

The conference call will also be audiocast live at http://www.llnw.com. A
replay of the call will also be available from the Company’s website for one
week.

Financial Statements
LIMELIGHT NETWORKS, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)

June 30, December 31,
2008 2007
Assets
Cash and cash equivalents $114,841 $113,824
Marketable securities 69,658 83,273
Accounts receivable, net 22,070 21,407
Income tax receivable 1,545 1,960
Prepaid expenses and other current assets 9,540 4,469
Current assets 217,654 224,933
Property and equipment, net 42,476 46,968
Marketable securities, less current portion 16 87
Other assets 812 1,440
Total assets $260,958 $273,428

Liabilities and stockholders’ equity

Accounts payable $6,126 $8,523
Accounts payable, related parties - 230
Deferred revenue, current portion 5,117 4,237
Provision for litigation 62,008 48,130
Other current liabilities 10,488 9,312
Current liabilities 83,739 70,432
Deferred revenue, less current portion 6,836 8,189
Other liabilities 850 770
Total liabilities 91,425 79,391
Stockholders’ equity 169,533 194,037
Total liabilities and stockholders’ equity $260,958 $273,428

LIMELIGHT NETWORKS, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)

Three Months Ended Six Months Ended
June 30, March 31, June 30, March 31, June 30, June 30,
2008 2008 2007 2007 2008 2007
Revenues $30,314 $30,202 $21,436 $23,353 $60,516 $44,789
Costs and
operating
expenses:
Cost of
revenues *+ 19,751 20,672 14,835 14,497 40,423 29,332
General and
administr-
ative*+ 9,463 13,329 8,831 7,774 22,791 16,605
Sales and
marketing * 8,965 8,142 6,404 3,018 17,107 9,422
Research and
development * 1,694 1,590 1,541 1,285 3,284 2,826
Provision for
litigation 6,743 7,134 - - 13,878 -
Total costs
and operating
expenses 46,616 50,867 31,611 26,574 97,483 58,185
Operating loss (16,302) (20,665) (10,175) (3,221) (36,967) (13,396)
Interest expense (11) (21) (821) (573) (33) (1,394)
Interest income 1,334 1,891 573 89 3,226 662
Other income
(expense) (377) 170 - - (207) -
Loss before income
taxes (15,356) (18,625) (10,423) (3,705) (33,981) (14,128)
Income tax
(benefit)
expense (25) (183) 221 200 (208) 421
Net loss $(15,331) $(18,442) $(10,644) $(3,905) $(33,773)$(14,549)

Net loss
allocable to
common
stockholders $(15,331) $(18,442) $(10,644) $(3,905) $(33,773)$(14,549)
Net loss per
share:
Basic $(0.18) $(0.22) $(0.23) $(0.18) $(0.41) $(0.43)
Diluted $(0.18) $(0.22) $(0.23) $(0.18) $(0.41) $(0.43)
Shares used in
per share
calculations:
Basic 82,889 82,623 45,791 21,945 82,756 33,871
Diluted 82,889 82,623 45,791 21,945 82,756 33,871

* Includes stock-related compensation (see supplemental table for
figures)

+ Includes depreciation (see supplemental table for figures)

LIMELIGHT NETWORKS, INC.
Supplemental Financial Data
(In thousands)
(Unaudited)

Three Months Ended Six Months Ended
June 30, March 31, June 30, March 31, June 30, June 30,
2008 2008 2007 2007 2008 2007
Supplemental
financial data
(in thousands):
Stock-related
compensation:
Cost of revenues $558 $507 $346 $242 $1,064 $588
General and
administrative 1,698 1,665 3,754 3,743 3,363 7,497
Sales and
marketing 1,431 1,306 1,152 235 2,738 1,387
Research and
development 598 482 1,007 851 1,080 1,858
Total stock-
related
compensation $4,285 $3,960 $6,259 $5,071 $8,245 $11,330
Depreciation and
amortization:
Network-related
depreciation $6,192 $6,013 $5,020 $4,688 $12,205 $9,708
Other depreciation 311 247 174 137 557 311
Total
depreciation
and
amortization $6,503 $6,260 $5,194 $4,825 $12,762 $10,019
Capital
expenditures:
Capital
expenditures
(cash and
accrual) $5,013 $3,095 $8,769 $5,575 $8,108 $14,344
Net increase
(decrease) in
cash, cash
equivalents and
marketable
securities $(10,194) $(2,475)$174,891 $4,995 $(12,669)$179,886
End of period
statistics:
Number of
customers
under
recurring
contract 1,291 1,232 876 726 1,291 876
Number of
employees 250 244 215 167 250 215

LIMELIGHT NETWORKS, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Three Months Ended Six Months Ended
June 30, March 31, June 30, March 31, June 30, June 30,
2008 2008 2007 2007 2008 2007
Cash flows
from operating
activities:
Net loss $(15,331) $(18,442)$(10,644)$(3,905) $(33,773) $(14,549)
Adjustments to
reconcile
net loss
to net
cash
provided by
(used in)
operating
activities:
Depreciation
and
amortization 6,503 6,260 5,194 4,824 12,762 10,019
Stock-based
compensation 4,285 3,960 6,259 5,071 8,245 11,330
Deferred income
tax expense
(benefit) 23 (234) 1,048 (467) (211) 580
Provision for
litigation 6,743 7,134 - - 13,878 -
Loss on foreign
exchange 232 - - - 232 -
Accounts
receivable
charges 1,925 1,562 1,170 677 3,487 1,847
Accretion of
debt discount - - 383 41 - 424
Accretion of
marketable
securities 21 (453) - - (432) -
Loss on
marketable
securities 16 55 - - 71 -
Changes in
operating assets
and liabilities:
Accounts
receivable (1,880) (2,271) (7,641) 1,998 (4,151) (5,643)
Prepaid
expenses
and other
current
assets (4,452) 87 (545) (1,809) (4,365) (2,354)
Income
taxes
receivable (129) 594 (848) 310 465 (538)
Other assets 67 564 (426) (119) 631 (545)
Accounts
payable (73) (4,634) (2,980) (732) (4,707) (3,712)
Accounts
payable,
related
parties (150) (80) (763) 1 (230) (762)
Deferred
revenue (774) 301 3,612 20 (473) 3,632
Other
current
liabilities(3,859) 5,035 5,405 630 1,176 6,035
Other long
term
liabilities (1) 1 - - - -
Net cash (used
in) provided
by operating
activities: (6,834) (561) (776) 6,540 (7,395) 5,764
Cash flows from
investing
activities:
Purchase of
marketable
securities (30,400) (34,725)(28,589) - (65,125) (28,589)
Sale of
marketable
securities 34,825 44,200 - - 79,025 -
Purchases of
property and
equipment (4,231) (2,435) (5,461) (3,095) (6,666) (8,556)
Net cash used
in investing
activities 194 7,040 (34,050) (3,095) 7,234 (37,145)
Cash flows from
financing activities:
Payments on
credit
facilities - - (23,818) - - (23,818)
Borrowings on
line of credit - - - 1,500 - 1,500
Payments on
line of credit - - (1,500) - - (1,500)
Payments on
capital lease
obligations - - (91) (159) - (250)
Payments on
notes payable
- related
parties - - - - - -
Escrow funds
returned from
share
repurchase 1,070 - 2,091 298 1,070 2,389
Excess tax
benefits
related to
stock option
exercises - - - 23 - 23
Proceeds from
exercise of
stock options
and warrants 53 107 - 31 160 31
Proceeds from
initial public
offering, net
of issuance
costs - - 204,498 - - 204,498
Net cash provided
by financing
activities 1,123 107 181,180 1,693 1,230 182,873
Effect of
exchange rate
changes on cash 104 (156) - - (52) -
Net increase
(decrease) in
cash and cash
equivalents (5,413) 6,430 146,354 5,138 1,017 151,492
Cash and cash
equivalents,
beginning of
period 120,254 113,824 12,749 7,611 113,824 7,611
Cash and cash
equivalents,
end of
period $114,841 $120,254 $159,103 $12,749 $114,841 $159,103

Use of Non-GAAP Financial Measures

To evaluate our business, we consider and use Non-GAAP revenue, Non-GAAP net income (loss) and Adjusted EBITDA as a supplemental measure of operating performance. We consider Non-GAAP revenue and net income (loss) to be an important indicator of overall business performance because it allows us to illustrate the impact of the effects from our multi-element contract as well as eliminate the effects of share-based compensation, litigation expenses and provision for litigation. We define EBITDA as GAAP net income (loss) before interest income, interest expense, other income and expense, provision for income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA plus income from our multi-element contract and expenses that we do not consider reflective of our ongoing operations. We use Adjusted EBITDA as a supplemental measure to review and assess operating performance. We also believe use of Adjusted EBITDA facilitates investors’ use of operating performance comparisons from period to period.

The terms Non-GAAP revenue, net income (loss), EBITDA and Adjusted EBITDA are not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and are not measures of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Our Non-GAAP revenue, net income (loss), EBITDA and Adjusted EBITDA have limitations as analytical tools, and when assessing our operating performance, Non-GAAP revenue, net income, EBITDA and Adjusted EBITDA should not be considered in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Some of these limitations include, but are not limited to:
– EBITDA and Adjusted EBITDA do not reflect our cash expenditures or
future requirements for capital expenditures or contractual
commitments;
– they do not reflect changes in, or cash requirements for, our
working capital needs;
– they do not reflect the cash requirements necessary for litigation
costs and damages accruals;
– they do not reflect the interest expense, or the cash requirements
necessary to service interest or principal payments, on our debt;
– they do not reflect income taxes or the cash requirements for any
tax payments;
– although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will be replaced sometime in
the future, and EBITDA and Adjusted EBITDA do not reflect any cash
requirements for such replacements;
– while share-based compensation is a component of operating expense,
the impact on our financial statements compared to other companies
can vary significantly due to such factors as the assumed life of
the options and the assumed volatility of our common stock; and
– other companies may calculate EBITDA and Adjusted EBITDA differently
than we do, limiting their usefulness as comparative measures.

We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP Revenue, Net Income (Loss) and Adjusted EBITDA only as supplemental support for management’s analysis of business performance. Non-GAAP Revenue, Net Income (Loss), EBITDA and Adjusted EBITDA are calculated as follows for the periods presented in thousands:

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the Company is presenting the most directly comparable GAAP financial measures and reconciling the non-GAAP financial metrics to the comparable GAAP measures.

Reconciliation of GAAP Revenue to Non-GAAP Revenue
(In thousands)
(Unaudited)

Three Months Ended Six Months Ended
June 30, March 31, June 30, March 31, June 30, June 30,
2008 2008 2007 2007 2008 2007
GAAP Revenue $NA $NA $21,436 $NA $NA $44,789

Deferred Traffic
Revenue - - 2,645 - - 2,645
Deferred Custom
CDN Services Revenue - - 820 - - 820

Non-GAAP Revenue $NA $NA $24,901 $NA $NA $48,254

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)
(In thousands)
(Unaudited)

Three Months Ended Six Months Ended
June 30, March 31, June 30, March 31, June 30, June 30,
2008 2008 2007 2007 2008 2007

GAAP net loss $(15,331) $(18,442)$(10,644) $(3,905) $(33,773)$(14,549)
Deferred
revenue 3,465
Deferred cost
of traffic
and services (935) (935)
Provision for
potential
litigation
damages 6,743 7,134 - - 13,878 -
Share-based
compensation 4,285 3,960 6,259 5,071 8,245 11,330
Litigation
defense
expenses 2,667 5,366 1,636 885 8,033 2,521
Non-GAAP net
(loss) income $(1,636) $(1,982) $(219) $2,051 $(3,617) $1,832

Reconciliation of GAAP Net Income (Loss) to EBITDA to EBITDA
Adjusted for Share-Based Compensation and Litigation and Damage Costs
(In thousands)
(Unaudited)

Three Months Ended Six Months Ended
June 30, March 31, June 30, March 31, June 30, June 30,
2008 2008 2007 2007 2008 2007

GAAP net loss $(15,331) $(18,442)$(10,644) $(3,905) $(33,773)$(14,549)
Add:
depreciation
and
amortization 6,503 6,260 5,194 4,825 12,762 10,019
Add: interest
expense 11 21 821 573 33 1,394
Less: interest
and other income (957) (2,061) (573) (89) (3,019) (662)
Plus income tax
(benefit)
expense (25) (183) 221 200 (208) 421
EBITDA $(9,799) $(14,405) $(4,981) $1,604 $(24,205) $(3,377)
Add: deferred
revenue 3,465 3,465
Add: provision
for litigation 6,743 7,134 - - 13,878 -
Add: share-
based
compensation 4,285 3,960 6,259 5,071 8,245 11,330
Add: litigation
defense
expenses 2,667 5,366 1,636 885 8,033 2,521
Less: deferred
traffic and
service costs (935) (935)
Adjusted EBITDA $3,896 $2,055 $5,444 $7,560 $5,951 $13,004