Riverbed Technology (RVBD)

14.    LEGAL MATTERS

During the year ended December 31, 2008, we entered into a mutual release and settlement agreement (the “Settlement Agreement”) with Quantum Corporation (“Quantum”) and certain affiliates of Quantum, pursuant to which we jointly executed and filed dismissals of patent infringement actions

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

brought in the United States District Court for the Northern District of California. Pursuant to the terms of the Settlement Agreement, we paid Quantum a lump sum of $11.0 million, and entered into a perpetual covenant not to sue each other or certain other parties related to the patents in question and certain patents related to data de-duplication as well as a three-year covenant not to file any patent infringement lawsuits against each other or certain other parties. In addition, we released each other from any and all claims, demands, losses, liabilities and causes of action relating to any infringement of any patent based on acts occurring prior to the date of the Settlement Agreement. Based on the terms of the Settlement Agreement we recorded operating expense of $11.0 million during 2008, which was recorded as Other charges in our consolidated statements of operations.

From time to time, we are involved in various legal proceedings, claims and litigation arising in the ordinary course of business. There are no currently pending legal proceedings at December 31, 2008 that, in the opinion of management, might have a material adverse effect on our financial position, results of operations or cash flows.

14.    LEGAL MATTERS

During the year
ended December 31, 2008, we entered into a mutual release and settlement agreement (the “Settlement Agreement”) with Quantum Corporation (“Quantum”) and certain affiliates of Quantum, pursuant to which we
jointly executed and filed dismissals of patent infringement actions

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RIVERBED TECHNOLOGY, INC.

FACE="ARIAL" SIZE="2">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

brought in the United States District Court for the Northern District of California. Pursuant to the terms of the Settlement Agreement, we paid Quantum a lump sum of
$11.0 million, and entered into a perpetual covenant not to sue each other or certain other parties related to the patents in question and certain patents related to data de-duplication as well as a three-year covenant not to file any patent
infringement lawsuits against each other or certain other parties. In addition, we released each other from any and all claims, demands, losses, liabilities and causes of action relating to any infringement of any patent based on acts occurring
prior to the date of the Settlement Agreement. Based on the terms of the Settlement Agreement we recorded operating expense of $11.0 million during 2008, which was recorded as Other charges in our consolidated statements of operations.

From time to time, we are involved in various legal proceedings, claims and litigation arising in the ordinary course of business. There are no currently
pending legal proceedings at December 31, 2008 that, in the opinion of management, might have a material adverse effect on our financial position, results of operations or cash flows.

13.    LEGAL MATTERS

On October 9, 2007, Quantum Corporation served us with a lawsuit, filed in the United States District Court, Northern District of California, alleging patent infringement of United States Patent No. 5,990,810 (the “‘810 patent”). Quantum seeks unspecified damages and injunctive relief.

On November 13, 2007, we counterclaimed against Quantum Corporation and served Quantum with a lawsuit, filed in the United States District Court, Northern District of California, alleging patent infringement of United States Patent No. 7,116,249. Trial on our claim against Quantum is currently scheduled to begin February 2, 2009.

On January 9, 2008, we moved to dismiss Quantum’s complaint for infringement in the United States District Court, Northern District of California, for lack of standing. Our motion was granted by the Court on February 4, 2008.

On January 9, 2008, we filed an action in the United States District Court, Delaware, against Quantum and certain of its subsidiaries seeking a declaratory judgment of non-infringement and invalidity with respect to the ‘810 patent.

On or about February 13, 2008, Quantum filed a lawsuit against us in the United States District Court, Northern District of California, alleging patent infringement of United States Patent No. 6,622,164 (the “‘164 Patent”). We have not yet been served with this lawsuit.

On February 14, 2008, Quantum moved to dismiss our complaint in the United States District Court, Delaware or, in the alternative, to transfer the action to the United States District Court, Northern District of California. In addition, Quantum moved for leave to file an amended counterclaim in the United States District Court, Northern District of California to add claims for infringement of the ‘810 Patent and the ‘164 Patent.

We believe that Quantum’s actions against us are without merit and we intend to vigorously defend against these claims. We currently are unable to estimate the possible loss or range of loss associated with these actions.

From time to time, we are involved in various legal proceedings, claims and litigation arising in the ordinary course of business. There are no other currently pending legal proceedings at December 31,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

2007 that, in the opinion of management, might have a material adverse effect on our financial position, results of operations or cash flows.

13.    LEGAL MATTERS

On
October 9, 2007, Quantum Corporation served us with a lawsuit, filed in the United States District Court, Northern District of California, alleging patent infringement of United States Patent No. 5,990,810 (the “‘810
patent”). Quantum seeks unspecified damages and injunctive relief.

On November 13, 2007, we counterclaimed against Quantum Corporation and
served Quantum with a lawsuit, filed in the United States District Court, Northern District of California, alleging patent infringement of United States Patent No. 7,116,249. Trial on our claim against Quantum is currently scheduled to begin
February 2, 2009.

On January 9, 2008, we moved to dismiss Quantum’s complaint for infringement in the United States District Court,
Northern District of California, for lack of standing. Our motion was granted by the Court on February 4, 2008.

On January 9, 2008, we
filed an action in the United States District Court, Delaware, against Quantum and certain of its subsidiaries seeking a declaratory judgment of non-infringement and invalidity with respect to the ‘810 patent.

15.    LEGAL MATTERS

From time to time, we may be involved in various legal proceedings arising in the ordinary course of business. There are no matters at December 31, 2006 that, in the opinion of management, are expected to have a material adverse effect on our financial position, results of operations or cash flows.