Exhibit 99.1

Investor Relations:

Kathleen Nemeth

Juniper Networks

(408) 936-5397

kbela@juniper.net

Media Relations:

David Shane

Juniper Networks

(408) 936-4872

dshane@juniper.net

Cindy Ta

Juniper Networks

(408) 936-6131

cta@juniper.net

JUNIPER NETWORKS REPORTS

PRELIMINARY SECOND QUARTER 2011 FINANCIAL RESULTS

• Revenue: $1,120.5 million, up 15% from Q2’10 and up 2% from Q1’11

• Operating Margin: 15.3% GAAP; 21.6% non-GAAP

• GAAP Net Income Per Share: $0.21 diluted

• Non-GAAP Net Income Per Share: $0.31 diluted, up 3% from Q2’10 and down 3% from Q1’11

SUNNYVALE, Calif., July 26, 2011 - Juniper Networks (NYSE: JNPR) today reported preliminary financial results for the three and six months ended June 30, 2011, and provided its outlook for the three months ending September 30, 2011.

Net revenues for the second quarter of 2011 increased 15% on a year-over-year basis, and increased 2% sequentially, to $1,120.5 million.

The Company posted GAAP net income of $115.6 million, or $0.21 per diluted share, and non-GAAP net income of $167.2 million, or $0.31 per diluted share, for the second quarter of 2011.

Non-GAAP net income per diluted share increased 3% compared to the second quarter of 2010 and decreased 3% compared to last quarter. The reconciliation between GAAP and non-GAAP results of operations is provided in a table immediately following the Share-Based Compensation Related Payroll Tax by Category table below.

“Juniper’s results reflect momentum in our routing business and a return to solid performance in switching. A number of factors, however, including mixed signals in the macro economy, impacted our performance this quarter,” said Kevin Johnson, chief executive officer at Juniper Networks. “We are confident that our investment in innovation is generating a wave of great products that positions us well to deliver on our multi-year growth agenda.”

Juniper’s operating margin for the second quarter of 2011 decreased to 15.3% on a GAAP basis from 16.1% in the first quarter of 2011, and from 18.9% in the prior year second quarter. Non-GAAP operating margin for the second quarter of 2011 decreased to 21.6% from 22.3% in the first quarter of 2011 and from 23.9% in the prior year second quarter.

“We delivered solid year-over-year growth in the June quarter. However, we saw some moderation in certain areas of the business, which resulted in revenues coming in below our expectations. I’m pleased with our diligent expense control, which enabled us to generate earnings within our guidance range,” said Robyn Denholm, chief financial

Page 1 of 15

officer at Juniper Networks. “We have taken decisive steps to ensure our cost structure takes into account the near-term revenue environment while preserving investments that support our multi-year growth agenda.”

Other Financial Highlights

Total cash, cash equivalents and investments as of the second quarter of 2011 was $4,220.5 million, compared to $4,083.5 million as of the first quarter of 2011 and $2,736.2 million as of the same quarter of the prior year.

Juniper generated net cash from operations for the second quarter of 2011 of $318.3 million, compared to net cash provided by operations of $239.7 million, in the first quarter of 2011, and $221.3 million in the same quarter of the prior year.

Days sales outstanding in accounts receivable (“DSO”) was 39 days in the second quarter of 2011, compared to 38 days in the prior quarter and 36 days in the same quarter of the prior year.

Juniper repurchased approximately 3.9 million shares in the second quarter of 2011, at an average price of $38.94 per share, or approximately $150 million dollars.

Capital expenditures, as well as depreciation and amortization of intangible assets expense during the second quarter of 2011, were $62.0 million and $41.9 million, respectively.

Outlook

While the long-term fundamentals driving demand for networking solutions are healthy, our outlook for the September quarter reflects some near-term market weakness due primarily to the timing of certain Service Provider deployments. Our overall pipeline is strong and we anticipate many of our recent design wins will begin translating to revenue late in 2011.

• Juniper estimates revenue for the third quarter ending September 30, 2011, to be in the range of $1.070 billion to $1.120 billion.

• Juniper estimates that its non-GAAP gross margin will be in the range of between 65% and 67% in the third quarter.

• Juniper expects its non-GAAP operating margin for the third quarter will be in the range of 19% to 21%

• Juniper estimates that its non-GAAP net income per share will range between $0.26 and $0.30 on a diluted basis, assuming a flat share count and estimated non-GAAP tax rate of 27%. The non-GAAP EPS estimate includes a dilutive impact of approximately $0.02 per share due to net interest expense from our debt.

All forward-looking non-GAAP measures exclude estimates for amortization of intangible assets, share-based compensation expenses, acquisition related charges, restructuring charges, litigation settlement charges, gain or loss on equity investments, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and income tax effect of non-GAAP exclusions. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis.

Conference Call Web Cast

Juniper Networks will host a conference call web cast today, July 26, 2011 at 2:00 p.m. (Pacific Time), to be broadcast live over the Internet at: http://www.juniper.net/company/investor/conferencecall.html.

To participate via telephone, in the U.S. the toll free dial-in number is 877-407-8033; outside of the U.S. dial +1-201-689-8033. Please call ten minutes prior to the scheduled conference call time. The webcast replay of the conference call will be archived on the Juniper Networks website until September 13, 2011.

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About Juniper Networks

Juniper Networks is in the business of network innovation. From devices to data centers, from consumers to cloud providers, Juniper Networks delivers the software, silicon and systems that transform the experience and economics of networking. Additional information can be found at Juniper Networks (www.juniper.net).

Juniper Networks and Junos are registered trademarks of Juniper Networks, Inc. in the United States and other countries. The Juniper Networks and Junos logos are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

Statements in this release concerning Juniper Networks’ business outlook, economic and market outlook, future financial and operating results, and overall future prospects are forward-looking statements that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of certain factors, including: general economic conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending and spending by communication service providers; the network capacity requirements of communication service providers; contractual terms that may result in the deferral of revenue; increases in and the effect of competition; the timing of orders and their fulfillment; manufacturing and supply chain constraints; ability to establish and maintain relationships with distributors, resellers and other partners; variations in the expected mix of products sold; changes in customer mix; changes in geography mix; customer and industry analyst perceptions of Juniper Networks and its technology, products and future prospects; delays in scheduled product availability; market acceptance of Juniper Networks products and services; rapid technological and market change; adoption of regulations or standards affecting Juniper Networks products, services or the networking industry; the ability to successfully acquire, integrate and manage businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; significant effects of tax legislation and judicial or administrative interpretation of tax regulations; currency fluctuations; litigation; and other factors listed in Juniper Networks’ most recent report on Form 10-Q filed with the Securities and Exchange Commission. All statements made in this press release are made only as of the date set forth at the beginning of this release. Juniper Networks undertakes no obligation to update the information in this release in the event facts or circumstances subsequently change after the date of this press release.

Juniper Networks believes that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. For further information regarding why Juniper Networks believes that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the discussion below.

Page 3 of 15

Juniper Networks, Inc.

Preliminary Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
Net revenues:
Product	$	891,428		$	774,058	$	1,768,868		$	1,495,259
Service		229,116			204,242		453,288			395,659
Total net revenues		1,120,544			978,300		2,222,156			1,890,918
Cost of revenues:
Product		292,391			231,752		558,137			454,133
Service		105,987			86,610		205,968			164,826
Total cost of revenues		398,378			318,362		764,105			618,959
Gross margin		722,166			659,938		1,458,051			1,271,959
Operating expenses:
Research and development		257,250			224,768		519,229			431,762
Sales and marketing		246,635			202,303		492,926			394,678
General and administrative		44,260			45,880		89,184			89,018
Amortization of purchased intangible assets		1,332			1,204		2,876			2,341
Restructuring		(916	)		264		(1,263	)		8,369
Acquisition-related charges		2,685			541		6,786			541
Total operating expenses		551,246			474,960		1,109,738			926,709
Operating income		170,920			184,978		348,313			345,250
Other (expense) income, net		(13,688	)		4,065		(20,150	)		5,524
Income before income taxes and noncontrolling interest		157,232			189,043		328,163			350,774
Income tax provision		41,714			58,700		82,985			55,821
Consolidated net income		115,518			130,343		245,178			294,953
Adjust for net loss (income) attributable to noncontrolling interest		42			168		132			(1,327	)
Net income attributable to Juniper Networks	$	115,560		$	130,511	$	245,310		$	293,626
Net income per share attributable to Juniper Networks common stockholders:
Basic	$	0.22		$	0.25	$	0.46		$	0.56
Diluted	$	0.21		$	0.24	$	0.45		$	0.55
Shares used in computing net income per share:
Basic		532,909			524,463		531,827			522,812
Diluted		546,452			538,947		547,729			537,989

Page 4 of 15

Juniper Networks, Inc.

Preliminary Net Revenues by Reportable Segment

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Infrastructure:
Routers - Product	$	620,928	$	502,227	$	1,230,468	$	984,746
Routers - Service		140,653		125,829		280,028		244,774
Infrastructure Revenue - Routers		761,581		628,056		1,510,496		1,229,520
Switches - Product		115,207		87,985		214,244		161,593
Switches - Service		7,278		4,315		14,055		7,939
Infrastructure Revenue - Switches		122,485		92,300		228,299		169,532
Total Infrastructure Revenue	$	884,066	$	720,356	$	1,738,795	$	1,399,052
Service Layer Technologies:
Service Layer Technologies – Product	$	155,293	$	183,846	$	324,156	$	348,920
Service Layer Technologies – Service		81,185		74,098		159,205		142,946
Total Service Layer Technologies Revenue	$	236,478	$	257,944	$	483,361	$	491,866
Total Revenue	$	1,120,544	$	978,300	$	2,222,156	$	1,890,918

Juniper Networks, Inc.

Preliminary Net Revenues by Geographic Region

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Americas	$	578,704	$	494,221	$	1,160,319	$	982,689
Europe, Middle East, and Africa		329,061		289,521		628,912		553,578
Asia Pacific		212,779		194,558		432,925		354,651
Total	$	1,120,544	$	978,300	$	2,222,156	$	1,890,918

Juniper Networks, Inc.

Preliminary Net Revenues by Market

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Service Provider	$	729,340	$	620,398	$	1,471,517	$	1,213,647
Enterprise		391,204		357,902		750,639		677,271
Total	$	1,120,544	$	978,300	$	2,222,156	$	1,890,918

Page 5 of 15

Juniper Networks, Inc.

Share-Based Compensation by Category

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Cost of revenues – Product	$	1,211	$	997	$	2,159	$	2,102
Cost of revenues – Service		4,486		3,242		8,405		6,736
Research and development		26,583		18,679		48,913		35,665
Sales and marketing		19,171		13,853		32,397		25,581
General and administrative		8,675		7,832		17,291		15,080
Total	$	60,126	$	44,603	$	109,165	$	85,164

Juniper Networks, Inc.

Share-Based Compensation Related Payroll Tax by Category

(in thousands)

(unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Cost of revenues – Product	$	24	$	40	$	295	$	111
Cost of revenues – Service		94		152		929		317
Research and development		276		430		3,350		1,185
Sales and marketing		583		1,150		3,969		1,582
General and administrative		66		111		485		208
Total	$	1,043	$	1,883	$	9,028	$	3,403

Page 6 of 15

Juniper Networks, Inc.

Reconciliation between GAAP and non-GAAP Financial Measures

(in thousands, except percentages)

(unaudited)

		Three Months Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
GAAP Cost of revenues - Product		$	292,391		$	231,752		$	558,137		$	454,133
Share-based compensation expense	C		(1,211	)		(997	)		(2,159	)		(2,102	)
Share-based compensation related payroll tax	C		(24	)		(40	)		(295	)		(111	)
Amortization of purchased intangible assets	A		(5,438	)		(308	)		(10,636	)		(333	)
Acquisition-related charges	A		(1,527	)		—			(2,487	)		—
Non-GAAP Cost of revenues - Product			284,191			230,407			542,560			451,587
GAAP Cost of revenues - Service			105,987			86,610			205,968			164,826
Share-based compensation expense	C		(4,486	)		(3,242	)		(8,405	)		(6,736	)
Share-based compensation related payroll tax	C		(94	)		(152	)		(929	)		(317	)
Non-GAAP Cost of revenues - Service			101,407			83,216			196,634			157,773
GAAP Gross margin - Product			599,037			542,306			1,210,731			1,041,126
Share-based compensation expense	C		1,211			997			2,159			2,102
Share-based compensation related payroll tax	C		24			40			295			111
Amortization of purchased intangible assets	A		5,438			308			10,636			333
Acquisition-related charges	A		1,527			—			2,487			—
Non-GAAP Gross margin - Product			607,237			543,651			1,226,308			1,043,672
GAAP Product gross margin as a % of product revenue			67.2	%		70.1	%		68.4	%		69.6	%
Share-based compensation expense as a % of product revenue	C		0.1	%		0.1	%		0.1	%		0.2	%
Share-based compensation related payroll tax as a % of product revenue	C		—	%		—	%		—	%		—	%
Amortization of purchased intangible assets as a % of product revenue	A		0.6	%		—	%		0.6	%		—	%
Acquisition-related charges as a % of product revenue	A		0.2	%		—	%		0.2	%		—	%
Non-GAAP Product gross margin as a % of product revenue			68.1	%		70.2	%		69.3	%		69.8	%
GAAP Gross margin - Service			123,129			117,632			247,320			230,833
Share-based compensation expense	C		4,486			3,242			8,405			6,736
Share-based compensation related payroll tax	C		94			152			929			317
Non-GAAP Gross margin - Service		$	127,709		$	121,026		$	256,654		$	237,886
GAAP Service gross margin as a % of service revenue			53.7	%		57.6	%		54.6	%		58.3	%
Share-based compensation expense as a % of service revenue	C		2.0	%		1.6	%		1.9	%		1.7	%
Share-based compensation related payroll tax as a % of service revenue	C		—	%		0.1	%		0.1	%		0.1	%
Non-GAAP Service gross margin as a % of service revenue			55.7	%		59.3	%		56.6	%		60.1	%

Page 7 of 15

Juniper Networks, Inc.

Reconciliation between GAAP and non-GAAP Financial Measures

(in thousands, except percentages)

(unaudited)

		Three Months Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
GAAP Gross margin		$	722,166		$	659,938		$	1,458,051		$	1,271,959
Share-based compensation expense	C		5,697			4,239			10,564			8,838
Share-based compensation related payroll tax	C		118			192			1,224			428
Amortization of purchased intangible assets	A		5,438			308			10,636			333
Acquisition-related charges	A		1,527			—			2,487			—
Non-GAAP Gross margin			734,946			664,677			1,482,962			1,281,558
GAAP Gross margin as a % of revenue			64.4	%		67.5	%		65.6	%		67.3	%
Share-based compensation expense as a % of revenue	C		0.5	%		0.4	%		0.5	%		0.5	%
Share-based compensation related payroll tax as a % of revenue	C		—	%		—	%		—	%		—	%
Amortization of purchased intangible assets as a % of revenue	A		0.6	%		—	%		0.5	%		—	%
Acquisition-related charges as a % of revenue	A		0.1	%		—	%		0.1	%		—	%
Non-GAAP Gross margin as a % of revenue			65.6	%		67.9	%		66.7	%		67.8	%
GAAP Research and development expense			257,250			224,768			519,229			431,762
Share-based compensation expense	C		(26,583	)		(18,679	)		(48,913	)		(35,665	)
Share-based compensation related payroll tax	C		(276	)		(430	)		(3,350	)		(1,185	)
Non-GAAP Research and development expense			230,391			205,659			466,966			394,912
GAAP Sales and marketing expense			246,635			202,303			492,926			394,678
Share-based compensation expense	C		(19,171	)		(13,853	)		(32,397	)		(25,581	)
Share-based compensation related payroll tax	C		(583	)		(1,150	)		(3,969	)		(1,582	)
Non-GAAP Sales and marketing expense			226,881			187,300			456,560			367,515
GAAP General and administrative expense			44,260			45,880			89,184			89,018
Share-based compensation expense	C		(8,675	)		(7,832	)		(17,291	)		(15,080	)
Share-based compensation related payroll tax	C		(66	)		(111	)		(485	)		(208	)
Non-GAAP General and administrative expense			35,519			37,937			71,408			73,730
GAAP Operating expense			551,246			474,960			1,109,738			926,709
Share-based compensation expense	C		(54,429	)		(40,364	)		(98,601	)		(76,326	)
Share-based compensation related payroll tax	C		(925	)		(1,691	)		(7,804	)		(2,975	)
Amortization of purchased intangible assets	A		(1,332	)		(1,204	)		(2,876	)		(2,341	)
Restructuring	B		916			(264	)		1,263			(8,369	)
Acquisition-related charges	A		(2,685	)		(541	)		(6,786	)		(541	)
Non-GAAP Operating expense		$	492,791		$	430,896		$	994,934		$	836,157

Page 8 of 15

Juniper Networks, Inc.

Reconciliation between GAAP and non-GAAP Financial Measures

(in thousands, except percentages)

(unaudited)

		Three Months Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
GAAP Operating income		$	170,920		$	184,978		$	348,313		$	345,250
Share-based compensation expense	C		60,126			44,603			109,165			85,164
Share-based compensation related payroll tax	C		1,043			1,883			9,028			3,403
Amortization of purchased intangible assets	A		6,770			1,512			13,512			2,674
Restructuring	B		(916	)		264			(1,263	)		8,369
Acquisition-related charges	A		4,212			541			9,273			541
Non-GAAP Operating income			242,155			233,781			488,028			445,401
GAAP Operating margin			15.3	%		18.9	%		15.7	%		18.3	%
Share-based compensation expense as a % of revenue	C		5.4	%		4.6	%		4.9	%		4.5	%
Share-based compensation related payroll tax as a % of revenue	C		0.1	%		0.2	%		0.4	%		0.2	%
Amortization of purchased intangible assets as a % of revenue	A		0.5	%		0.2	%		0.7	%		0.2	%
Restructuring as a % of revenue	B		(0.1	)%		—	%		(0.1	)%		0.4	%
Acquisition-related charges as a % of revenue	A		0.4	%		—	%		0.4	%		—	%
Non-GAAP Operating margin			21.6	%		23.9	%		22.0	%		23.6	%
GAAP Other (expense) income, net	E		(13,688	)		4,065			(20,150	)		5,524
Gain on equity investments	B		(72	)		(3,232	)		(134	)		(3,232	)
Non-GAAP Other (expense) income, net	E		(13,760	)		833			(20,284	)		2,292
GAAP Income tax provision			41,714			58,700			82,985			55,821
Non-recurring income tax adjustment	B		—			—			—			54,069
Income tax effect of non-GAAP exclusions	B		19,487			12,130			40,145			26,107
Non-GAAP Provision for income tax			61,201			70,830			123,130			135,997
Non-GAAP Income tax rate			26.8	%		30.2	%		26.3	%		30.4	%
Non-GAAP Income before income taxes and noncontrolling interest*		$	228,395		$	234,614		$	467,744		$	447,693

* Consists of non-GAAP operating income plus non-GAAP net other income and expense.

Page 9 of 15

Juniper Networks, Inc.

Reconciliation between GAAP and non-GAAP Financial Measures

(in thousands, except per share amounts and percentages)

(unaudited)

		Three Months Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
GAAP Net income attributable to Juniper Networks		$	115,560		$	130,511		$	245,310		$	293,626
Share-based compensation expense	C		60,126			44,603			109,165			85,164
Share-based compensation related payroll tax	C		1,043			1,883			9,028			3,403
Amortization of purchased intangible assets	A		6,770			1,512			13,512			2,674
Restructuring	B		(916	)		264			(1,263	)		8,369
Acquisition-related charges	A		4,212			541			9,273			541
Gain on equity investments	B		(72	)		(3,232	)		(134	)		(3,232	)
Non-recurring income tax adjustments	B		—			—			—			(54,069	)
Income tax effect of non-GAAP exclusions	B		(19,487	)		(12,130	)		(40,145	)		(26,107	)
Non-GAAP Net income		$	167,236		$	163,952		$	344,746		$	310,369
Non-GAAP Net income per share:
Basic	D	$	0.31		$	0.31		$	0.65		$	0.59
Diluted	D	$	0.31		$	0.30		$	0.63		$	0.58
Shares used in computing non-GAAP net income per share:
Basic	D		532,909			524,463			531,827			522,812
Diluted	D		546,452			538,947			547,729			537,989
GAAP Net income attributable to Juniper Networks as a % of revenue			10.3	%		13.3	%		11.0	%		15.5	%
Share-based compensation expense as a % of revenue	C		5.4	%		4.6	%		4.9	%		4.5	%
Share-based compensation related payroll tax as a % of revenue	C		0.1	%		0.2	%		0.4	%		0.2	%
Amortization of purchased intangible assets as a % of revenue	A		0.6	%		0.2	%		0.6	%		0.2	%
Restructuring as a % of revenue	B		(0.1	)%		—	%		(0.1	)%		0.4	%
Acquisition-related charges as a % of revenue	A		0.4	%		0.1	%		0.4	%		—	%
Gain on equity investments	B		—	%		(0.3	)%		—	%		(0.2	)%
Non-recurring income tax adjustments as a % of revenue	B		—	%		—	%		—	%		(2.9	)%
Income tax effect of non-GAAP exclusions as a % of revenue	B		(1.8	)%		(1.3	)%		(1.7	)%		(1.3	)%
Non-GAAP Net income as a % of revenue			14.9	%		16.8	%		15.5	%		16.4	%

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Discussion of Non-GAAP Financial Measures

The table above includes the following non-GAAP financial measures derived from our Preliminary Condensed Consolidated Statements of Operations: cost of product revenue; cost of service revenue; product gross margin, product gross margin as a percentage of product revenue; service gross margin; service gross margin as a percentage of service revenue; gross margin; gross margin as a percentage of revenue; research and development expense; sales and marketing expense; general and administrative expense; operating expense; operating income; operating margin; net other income and expense; income before income taxes and noncontrolling interest; provision for income taxes; income tax rate; net income; net income per share and net income as a percentage of revenue. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles or GAAP. In addition, these measures may be different from non-GAAP measures used by other companies, limiting their usefulness for comparison purposes. The non-GAAP financial measures used in the table above should not be considered in isolation from measures of financial performance prepared in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future.

We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of our business, in making operating decisions, forecasting and planning for future periods, and determining payments under compensation programs. We consider the use of the non-GAAP measures presented above to be helpful in assessing the performance of the continuing operation of our business. By continuing operations we mean the ongoing revenue and expenses of the business excluding certain items that render comparisons with prior periods or analysis of on-going operating trends more difficult, such as expenses not directly related to the actual cash costs of development, sale, delivery or support of our products and services, or expenses that are reflected in periods unrelated to when the actual amounts were incurred or paid. Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for financial measures prepared in accordance with GAAP, allows for greater transparency in the review of our financial and operational performance. In addition, we have historically reported non-GAAP results to the investment community and believe that continuing to provide non-GAAP measures provides investors with a tool for comparing results over time. In assessing the overall health of our business for the periods covered by the table above and, in particular, in evaluating the financial line items presented in the table above, we have excluded items in the following three general categories, each of which are described below: Acquisition-Related Charges, Other Items, and Stock-Based Compensation Related Items. We also provide additional detail below regarding the shares used to calculate our non-GAAP net income per share. Notes identified for line items in the table above correspond to the appropriate note description below. Additionally, with respect to future financial guidance provided on a non-GAAP basis, we have excluded estimates for amortization of intangible assets, stock based compensation expenses, acquisition related charges, restructuring charges, litigation settlement charges, gain or loss on equity investments, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and income tax effect of non-GAAP exclusions.

Note A: Acquisition-Related Charges. We exclude certain expense items resulting from acquisitions including the following, when applicable: (i) amortization of purchased intangible assets associated with our acquisitions; (ii) compensation related to acquisitions; and (iii) acquisition-related charges. The amortization of purchased intangible assets associated with our acquisitions results in our recording expenses in our GAAP financial statements that were already expensed by the acquired company before the acquisition and for which we have not expended cash. Moreover, had we internally developed the products acquired, the amortization of intangible assets, and the expenses of uncompleted research and development would have been expensed in prior periods. Accordingly, we analyze the performance of our operations in each period without regard to such expenses. In addition, acquisitions result in non-continuing operating expenses, which would not otherwise have been incurred by us in the normal course of our business operations. For example, we have incurred deferred compensation charges related to assumed options and transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees. We believe that providing non-GAAP information for acquisition-related expense items in addition to the corresponding GAAP information allows the users of our financial statements to better review and understand the historic and current results of our continuing operations, and also facilitates comparisons to less acquisitive peer companies.

Note B: Other Items. We exclude certain other items that are the result of either unique or unplanned events including the following, when applicable: (i) restructuring and related costs; (ii) impairment charges; (iii) gain or loss on legal settlement, net of related transaction costs; (iv) retroactive impacts of certain tax settlements; (v) significant effects of tax legislation and judicial or administrative interpretation of tax regulations; (vi) gain or loss on equity investments; and (vii) the income tax effect on our financial statements of excluding items related to our non-GAAP financial measures. It is difficult to estimate the amount or timing of these items in advance. Restructuring and impairment charges result from events, which arise from unforeseen circumstances, which often occur outside of the ordinary course of continuing operations. Although these events are reflected in our GAAP financials, these unique transactions may limit the comparability of our on-going operations with prior and future periods. In the case of legal settlements, these gains or losses are recorded in the period in which the matter is concluded or resolved even though the subject matter of the underlying dispute may relate to multiple or different periods. As such, we believe that these expenses do not accurately reflect the underlying performance of our continuing operations for the period in which they are incurred. Similarly, the retroactive impacts of certain tax settlements and significant effects of retroactive tax legislation are unique events that occur in periods that are generally unrelated to the level of business activity to which such settlement or legislation applies. We believe this limits comparability with prior periods and that these expenses do not accurately reflect the underlying performance of our continuing business operations for the period in which they are incurred. Whether we realize gains or losses on equity investments is based primarily on the performance and market value of those independent companies. Accordingly, we believe that these gains and losses do not reflect the underlying performance of our continuing operations. We also believe providing financial information with and without the income tax effect of excluding items related to our non-GAAP financial measures provide our management and users of the financial statements with better clarity regarding the on-going performance and future liquidity of our business. Because of these factors, we assess our operating performance both with these amounts included and excluded, and by providing this information, we believe the users of our financial statements are better

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able to understand the financial results of what we consider our continuing operations.

Note C: Stock-Based Compensation Related Items. We provide non-GAAP information relative to our expense for stock-based compensation and related payroll tax. We began to include stock-based compensation expense in our GAAP financial measures in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 718, Compensation - Stock Compensation (“FASB ASC Topic 718”), in January 2006. Because of varying available valuation methodologies, subjective assumptions and the variety of award types, which affect the calculations of stock-based compensation, we believe that the exclusion of stock-based compensation allows for more accurate comparisons of our operating results to our peer companies. Further, we believe that excluding stock-based compensation expense allows for a more accurate comparison of our financial results to previous periods during which our equity-based awards were not required to be reflected in our income statement. Stock-based compensation is very different from other forms of compensation. A cash salary or bonus has a fixed and unvarying cash cost. For example, the expense associated with a $10,000 bonus is equal to exactly $10,000 in cash regardless of when it is awarded and who it is awarded by. In contrast, the expense associated with an award of an option for 1,000 shares of stock is unrelated to the amount of compensation ultimately received by the employee; and the cost to the company is based on a stock-based compensation valuation methodology and underlying assumptions that may vary over time and that does not reflect any cash expenditure by the company because no cash is expended. Furthermore, the expense associated with granting an employee an option is spread over multiple years unlike other compensation expenses which are more proximate to the time of award or payment. For example, we may be recognizing expense in a year where the stock option is significantly underwater and is not going to be exercised or generate any compensation for the employee. The expense associated with an award of an option for 1,000 shares of stock by us in one quarter may have a very different expense than an award of an identical number of shares in a different quarter. Finally, the expense recognized by us for such an option may be very different than the expense to other companies for awarding a comparable option, which makes it difficult to assess our operating performance relative to our competitors. Similar to stock-based compensation, payroll tax on stock option exercises is dependent on our stock price and the timing and exercise by employees of our stock-based compensation, over which our management has little control, and as such does not correlate to the operation of our business. Because of these unique characteristics of stock-based compensation and the related payroll tax, management excludes these expenses when analyzing the organization’s business performance. We also believe that presentation of such non-GAAP information is important to enable readers of our financial statements to compare current period results with periods prior to the adoption of FASB ASC Topic 718.

Note D: Non-GAAP Net Income Per Share Items. We provide basic non-GAAP net income per share and diluted non-GAAP net income per share. The basic non-GAAP net income per share amount was calculated based on our non-GAAP net income and the weighted-average number of shares outstanding during the reporting period. The diluted non-GAAP income per share included additional dilution from potential issuance of common stock, except when such issuances would be anti-dilutive.

Note E: Other Income and Expense. GAAP and non-GAAP other (expense) income, net, consist primarily of interest income, interest expense and other non-operational income and expense items. As noted in Note B above, we exclude gains or losses from equity investments in our computation of non-GAAP other (expense) income.

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Juniper Networks, Inc.

Preliminary Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

	June 30, 2011		December 31, 2010
ASSETS
Current assets:
Cash and cash equivalents	$	2,838,066	$	1,811,887
Short-term investments		631,781		474,514
Accounts receivable, net of allowances		488,037		596,622
Deferred tax assets, net		152,858		161,535
Prepaid expenses and other current assets		175,201		169,812
Total current assets		4,285,943		3,214,370
Property and equipment, net		544,389		493,881
Long-term investments		750,603		535,178
Restricted cash		93,173		119,346
Purchased intangible assets, net		136,736		121,803
Goodwill		3,927,883		3,927,807
Other long-term assets		54,390		55,466
Total assets	$	9,793,117	$	8,467,851
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	250,068	$	292,270
Accrued compensation		216,490		256,746
Accrued warranty		38,066		35,931
Deferred revenue		707,422		660,264
Income taxes payable		32,248		25,000
Other accrued liabilities		185,054		201,765
Total current liabilities		1,429,348		1,471,976
Long-term debt		998,960		—
Long-term deferred revenue		222,802		224,165
Long-term income tax payable		106,261		103,823
Other long-term liabilities		73,816		59,087
Total liabilities		2,831,187		1,859,051
Total equity		6,961,930		6,608,800
Total liabilities and equity	$	9,793,117	$	8,467,851

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Juniper Networks, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Six Months Ended June 30,
	2011			2010
Cash flows from operating activities:
Consolidated net income	$	245,178		$	294,953
Adjustments to reconcile consolidated net income to net cash from operating activities:
Depreciation and amortization		82,649			72,748
Non-cash portion of share-based compensation		106,243			85,164
Gain on equity investments		—			(3,232	)
Excess tax benefits from share-based compensation		(43,331	)		(28,287	)
Deferred income taxes		8,677			(25,594	)
Amortization of debt issuance costs		273			—
Changes in operating assets and liabilities:
Accounts receivable, net		107,982			67,168
Prepaid expenses and other assets		6,408			(15,712	)
Accounts payable		(34,051	)		(6,331	)
Accrued compensation		(38,756	)		29,977
Accrued litigation settlements		—			(169,330	)
Income tax payable		51,220			(683	)
Other accrued liabilities		19,670			(4,987	)
Deferred revenue		45,795			14,035
Net cash provided by operating activities		557,957			309,889
Cash flows from investing activities:
Purchases of property and equipment, net		(115,941	)		(83,157	)
Purchases of trading investments		(3,127	)		(1,690	)
Purchases of available-for-sale investments		(1,293,670	)		(932,004	)
Proceeds from sales of available-for-sale investments		685,258			354,890
Proceeds from maturities of available-for-sale investments		238,000			557,363
Payment for business acquisition, net of cash and cash equivalents acquired		(31,073	)		(64,215	)
Changes in restricted cash		(1,236	)		(12,296	)
Purchases of privately-held equity investments, net		(8,643	)		(727	)
Net cash used in investing activities		(530,432	)		(181,836	)
Cash flows from financing activities:
Proceeds from issuance of common stock		303,874			176,662
Purchases and retirement of common stock		(355,171	)		(253,672	)
Issuance of long-term debt		991,556			—
Change in customer financing arrangements		15,064			(20,967	)
Excess tax benefits from share-based compensation		43,331			28,287
Return of capital to noncontrolling interest		—			(3,000	)
Net cash provided by financing activities		998,654			(72,690	)
Net increase in cash and cash equivalents		1,026,179			55,363
Cash and cash equivalents at beginning of period		1,811,887			1,604,723
Cash and cash equivalents at end of period	$	2,838,066		$	1,660,086

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Juniper Networks, Inc.

Cash, Cash Equivalents, and Investments

(in thousands)

(unaudited)

	June 30, 2011		December 31, 2010
Cash and cash equivalents	$	2,838,066	$	1,811,887
Short-term investments		631,781		474,514
Long-term investments		750,603		535,178
Total	$	4,220,450	$	2,821,579

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