MILESTONE REACHED THROUGH EXTRAORDINARY VIRAL GROWTH

NEW YORK — August 17, 2006 — Pando Networks Inc. today announced that more than 1 million people have installed and used its free and user-friendly application, which allows consumers to send and receive high quality digital media with their existing email accounts. Since its initial private beta release in late 2005, Pando's network has successfully transported nearly 3 petabytes (3 million gigabytes) of data.

Pando users can securely send up to 1GB of digital media — home movies, folders of family photos, business presentations and other large files — to anyone with an email address. No registration or new email accounts are required. Underneath its simple interface, Pando is powered by the company's enhanced BitTorrent&trade technology; Pando uniquely combines the distribution efficiencies of peer-to-peer (P2P) technology with the "send-and-forget" ease of email.

Pando also boasts:

• A popular Yahoo! Messenger plug-in - One of the most popular Yahoo! Messenger (with Voice version 8.0) plug-ins since its launch, this free plug-in allows users to share large, high quality media files and folders with their Yahoo! Contacts.
• An upcoming Outlook plug-in — For the first time, Outlook users can easily attach large files and folders, up to 1GB, to any email. Pando does the heavy lifting in the background, without clogging inboxes. To sign up for the beta test, go to http://www.pando.com/beta/outlook.
• High-speed LAN transfers - Pando automatically detects when files are being transferred within local area networks (LANs) and ensures maximum upload/download speeds. Corporate users have reported speeds upwards of 8MB per second.
• Folder transfer — Entire folders of files can be emailed to anyone, greatly streamlining the sharing of multiple files such as digital photo collections.
• Efficient 1-click forwarding — Pando Packages can be forwarded instantaneously, no re-uploading required.
• Strong data encryption - Pando provides end-to-end 256-bit AES encryption, and soon, optional password protection for files.
• Mac version - Addressing the needs of the multitudes of A/V savvy Mac users, Pando developers created a Mac version that is just as robust as its Windows version.

"The enthusiastic response from our beta testers has propelled Pando into a viral phenomenon," said Robert Levitan, CEO of Pando. "Our rapid user growth, combined with positive reactions from partners, investors and the press has been a great validation of our mission: providing an easy, convenient way to share large digital files using familiar tools such as email and IM."

Pando completed a $7 million round of funding, led by Intel Capital's Digital Home Fund, in May 2006.

About Pando Networks Inc.
Pando Networks is a privately held company that provides transport for today's large personal media. The company offers a free, simple to use consumer application with an underlying peer-to-peer network architecture. Based in New York City, Pando Networks is led by CEO Robert Levitan, co-founder of iVillage. The company is funded by Intel Capital, BRM Capital and Wheatley Partners. For more information or to start using Pando, please visit www.pando.com.

SOURCE: Pando Networks, Inc.
8/17/2006
CONTACT: Alan Danzis of RLM PR, (212) 741-5106 x256