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BlueArc Announces New Corporate Headquarters in San Jose, Calif.

Company Growth, Headcount Expansion, Research and Development Requirements Key

SAN JOSE, Calif. and MOUNTAIN VIEW, Calif. - July 2, 2001

BlueArc, provider of the world's highest performance network storage systems, today announced the opening of its new corporate headquarters in San Jose, Calif. The new office space provides the company with ample room for growth and expansion, and fully integrates the latest in available networking and conferencing business technologies.

"Our new corporate headquarters in San Jose will give BlueArc the flex ibility that we need as we grow our customer install base and expand as a company," said Enrico Pesatori, president and chief executive officer of BlueArc. "The building's vast resources provide us with a strong base of operations to continue our product development, ramp up manufacturing and shipment of our Si7500 storage systems, and continue to grow our corporate sales, marketing, services and administration infrastructures."

The company's new corporate headquarters are located on 225 Baypointe Parkway in San Jose, the heart of the Silicon Valley, near Zanker Road off of Highway 237.

About BlueArc

BlueArc Corporation was founded in 1998 and delivers the world's highest-performance enterprise-class network storage systems. BlueArc's systems are designed to simplify the way our enterprise customers design and build their storage infrastructures, allowing them to fully exploit their networks while dramatically lowering total cost of ownership. BlueArc is able to provide products with groundbreaking speed, scalability and low total cost-of-ownership as a result of its unique SiliconServer architecture. This revolutionary technology removes the bottlenecks that limit performance in other network storage systems on the market today. The company is headquartered in San Jose, California with European operations based in Bracknell, England. More information on BlueArc is available on the Internet at www.bluearc.com