IPO Profile: Fortinet

Sunnyvale, Calif. • (408) 235-7700 • www.fortinet.com

IPO DETAILS

IPO Date: 11/18/09

Exchange and Ticker: Nasdaq: FTNT

Filing Range: 12M shares @ $9.00 to $11.00

Offering Price: $12.50

Close on First Day: $16.62

Offering Size: $156.30M

Shares Outstanding: 64.39M

Underwriters: Morgan Stanley/ JP Morgan/ Deutsche Bank Securities Corp.

Co-manager: Robert W Baird & Co. Inc./ RBC Capital Markets/ ThinkEquity Partners/ JMP Securities LLC/ Signal Hill Capital Group LLC

Company Counsel: Wilson Sonsini Goodrich & Rosati

Manager Counsel: Davis Polk & Wardwell

Auditor: Deloitte & Touche LLP

Market Capitalization on 11/30/09: $1,094.05M

Close price at current month end: $16.99

COMPANY DESCRIPTION

Develops network protection systems. Company says its FortiGate series of ASIC-accelerated multi-threat security systems provide real-time network protection systems, detecting and eliminating content-based threats from e-mail and Web traffic such as viruses, worms, intrusions and inappropriate Web content. Fortinet says its competitors include “networking companies such as Cisco Systems Inc. and Juniper Networks Inc., security vendors such as Check Point Software Technologies Ltd., McAfee Inc. and SonicWALL Inc., and other point solution security vendors.”

VENTURE BACKERS

Acorn Campus Ventures, DCM, Defta Partners, Meritech Capital Partners, Redpoint Ventures, WI Harper Group

LEGAL MATTERS

Fortinet says that it a complaint in January 2009 against Palo Alto Networks Inc. in the United States District Court for the Northern District of California alleging, among other claims, patent infringement and misappropriation of trade secrets. On Sept. 4, 2009, Palo Alto Networks filed a counterclaim against us requesting declatory judgement of non-infringement by Palo Alto Networks and of invalidity of our asserted patents, according to Fortinet.

STOCK HOLDINGS OF VC FUNDS

(For company directors or owners of 5% or more of the company’s shares.)Owner_ No. of shares, 11/18/09_ Value, 11/30/09_ Ownership after offering

Redpoint Ventures*_7,994,119_$135.82M_12.4%

Meritech Capital Partners*_5,736,168_$97.46M_8.9%

Defta Partners*_2,130,516_$36.2M_3.3%

Acer Technology Venture America**_400,000_$6.8M_n/m

*Note: Redpoint sold 888,234 at $12.50 per share in the IPO for proceeds of $11.1 million, Meritech sold 600,000 shares in the IPO for proceeds of $7.5 million, and Defta sold 706,151 shares for proceeds of $8.8 million, according to a Fortinet prospectus filed on Nov. 18, 2009.**Note: Acer Technology Venture America is the general partner of IP Fund One LP, according to the prospectus.VENTURE ROUNDSDate_ No. of Investors_ Round Amount $M_ Valuation $M

5/1/02_ 2_$9.00_n/a

8/15/03_2_$25.0_n/a

3/2/04 _4 _$39.00_n/a

6/23/05 _4_$10.65_n/a

FINANCIALS12/31/06_12/31/07_12/31/08

Total Revenue $M: $123,466_$155,366_$211,791

Net Income $M: $(5,344)_$(21,842)_$7,363

EPS: $(0.28)_$(1.13)_$0.37

Note: Financial data are from Fortinet prospectus filed on Nov. 18, 2009.Source: Thomson Reuters