Akamai Reports Record Revenue and Profits for Second Quarter 2005

Cambridge, MA. - July 26, 2005 - Akamai Technologies, Inc. (NASDAQ: AKAM), the leading global service provider for accelerating content and business processes online, today reported financial results for the second quarter ended June 30, 2005.

Revenue for the second quarter 2005 was $64.6 million, an 8 percent increase over first quarter 2005 revenue of $60.1 million, and a 27 percent increase over second quarter 2004 revenue of $50.8 million.

Akamai's second quarter consolidated financial results include 20 days of activity from Speedera Networks, Inc. following the closing of Akamai's acquisition of Speedera on June 10th. Speedera contributed $2.5 million of revenue during the quarter.

Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, increased in the second quarter of 2005 to $15.9 million, or $0.11 per diluted share, a 13 percent increase over first quarter 2005 GAAP net income of $14.1 million, or $0.10 per diluted share, and a significant improvement over 2004 second quarter earnings per diluted share of $0.05 per share.

"Excellent performance across our business in the second quarter helped to drive our record top-line results and profitability," said Paul Sagan, president and CEO of Akamai. "In addition, we already are seeing benefits from the Speedera acquisition, and expect further improvements as we work to expand our client base and service offerings."

The Company generated normalized net income* of $17.1 million, or $0.12 per diluted share, in the second quarter of 2005. (*See Use of Non-GAAP Financial Measures below for definitions.)

Adjusted EBITDA* for the second quarter of 2005 was $22.7 million, up 11 percent compared to $20.4 million in the prior quarter, and up 28 percent compared to $17.7 million in the second quarter of 2004. Adjusted EBITDA as a percentage of revenue was 35 percent, up from 34 percent in the prior quarter, and consistent with second quarter 2004. (*See Use of Non-GAAP Financial Measures below for definitions.)

Cash from operations was $14.7 million in the second quarter, which includes costs associated with the acquisition, as compared to first quarter 2005 cash from operations of $18.7 million. On a year-to-date basis, cash from operations was $33.4 million, as compared to $21.1 million in the first six months of 2004.

At June 30, 2005, the Company had approximately 138.8 million shares of common stock outstanding, and had approximately $130.7 million of cash, cash equivalents and marketable securities, including $4.5 million in cash, cash equivalents and marketable securities resulting from the Speedera acquisition.

Customers
Excluding any customers that were acquired from Speedera, Akamai added 71 net new customers under long-term services contracts during the second quarter 2005. The Speedera acquisition resulted in an additional 305 recurring revenue customers, bringing Akamai's total number of customers under long-term services contracts at the end of the second quarter to 1,736.

"We are benefiting from the increased adoption of our platform by leading enterprises and government agencies that need to make mission-critical applications predictable, scalable and secure," continued Sagan. "We believe that, in the near term, growth will continue in such markets as online commerce, electronic software and media delivery, manufacturing, travel and hospitality, news and information portals, and the public sector."

Sales through resellers and sales outside the United States accounted for 25 percent and 21 percent, respectively, of revenue for the second quarter of 2005.