CONTACTS:

Press contact:
Mary Ann Gallo
Resonate, Inc.
408.545.5500
mgallo@resonate.com 		Investor contact:
Edmond Mok
Resonate
408-545-5500
emok@resonate.com emok@resonate.com

FOR IMMEDIATE RELEASE:

Resonate Announces First Quarter 2002 Results

SUNNYVALE, Calif., April 30, 2002 — Resonate Inc. (NASDAQ: RSNT), the leading provider of award winning service level management solutions for business-critical applications, today reported quarterly financial results for the three months ended March 31, 2002.

Revenue for the first quarter of 2002 was $2.7 million. Pro forma net loss for the quarter was $5.2 million, or ($0.20) per share. Total pro forma expenses for the first quarter of 2002 were $8.3 million. Pro forma financial results exclude amortization of stock-based compensation. Including amortization of stock-based compensation, net loss for the quarter was $5.2 million, or ($0.19) per share and total expenses were $8.2 million. For full details on Resonate’s reported results, please refer to the accompanying financial tables.

"The service level management market represents a strong growth opportunity for us, " said Peter Watkins, president and CEO of Resonate. "Unfortunately our revenues in the quarter were negatively affected by both a slowdown in technology spending and a longer than expected sales cycle of our new Resonate Commander Solutions product set. The prospective customer base is very enthusiastic about Commander Solutions, and I continue to believe that our solution set uniquely positions us for success."

Quarter Highlights

  • Significant number of new product shipments including: two upgrades to our Resonate Commander Solutions™, a new Resonate Command Module™ for BEA WebLogic® Server using BEA’s implementation of the Java™ Management Extension (JMX) technology, as well as Command Modules for IBM’s WebSphere Application Server, WebSphere MQ and AIX, iPlanet (Sun One) Web Server, SQL Server, Cisco CSS, and Apache HTTP Server.
  • Continued positive validation of the quality of our products and services as demonstrated by a Hurwitz Group review of our Command Module for IBM WebSphere Application Server and high customer satisfaction levels received from our customers in recent surveys.
  • Repeat business from customers including Charles Schwab, Dunn & Bradstreet, E*Trade, Eastman Chemical, Household International, Johnson & Johnson, Standard & Poor’s, and Southwest Bell.

Conference Call Information

Resonate’s financial results will be discussed today, Tuesday, April 30, 2002 at 2:00 p.m. PDT, after the close of the market.

About Resonate
Founded in 1995, Resonate is the leading provider of application performance management solutions for business-critical application environments. Hundreds of customers worldwide including AT&T, AIG, Bank of America, Charles Schwab, Chase Manhattan Corporation, Citibank, DoubleClick, Eastman Chemical, E*TRADE, FedEx, France Telecom, Nippon Steel and UBS PaineWebber among others, rely on Resonate solutions. Resonate has strategic partnerships with industry leaders including BEA Systems, IBM, and Sun Microsystems.

Resonate is headquartered in Sunnyvale, California.

For more information on Resonate, visit http://www.resonate.com.

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Note to Editors: Resonate and the Resonate logo are registered trademarks and Resonate Commander Solutions and Resonate Command Modules are trademarks of Resonate Inc. All other trademarks are the property of their respective owners.

Safe Harbor Statement: This press release contains forward-looking statements under the federal securities laws. The foregoing statements about the long-term outlook for the active service level management market and the mission critical nature of Resonate's solution are forward-looking and subject to significant risks including the following: enterprises looking to manage their IP based infrastructures may not use Resonate's solution; new technology addressing the needs of such enterprises may be developed by Resonate's competitors or other third parties; failure of enterprises to adopt Resonate's solution; and harm to our revenues if general economic conditions continue to worsen. Investors are also encouraged to read the "Risk Factors" section of Resonate's Annual Report on Form 10-K for the year ended December 31, 2001, which is on file with the Securities and Exchange Commission.