Cambridge, MA |

Akamai Technologies, Inc. (NASDAQ: AKAM), the leading global service provider for accelerating content and business processes online, today reported financial results for the fourth quarter and full-year ended December 31, 2005. Revenue for the fourth quarter 2005 was $82.7 million, a 9 percent increase over the previous quarter's revenue of $75.7 million, and a 44 percent increase over fourth quarter 2004 revenue of $57.6 million. Total revenue for 2005 was $283.1 million, a 35 percent increase over 2004 revenue of $210.0 million.

Net income in accordance with United States Generally Accepted Accounting Principles, or GAAP, for the fourth quarter of 2005 was $25.8 million, or $0.16 per diluted share. Full-year net income for 2005 was $328.0 million, or $2.11 per diluted share, including a $258.8 million benefit from the release of a tax valuation allowance.

"2005 was the best year in the history of Akamai as we demonstrated the power of the Akamai business model by delivering strong revenue growth, high profit margins, sustained cash flow, and increasing profitability," said Paul Sagan, president and CEO of Akamai. "We benefited from broad customer adoption of our global platform and services, and we believe our demonstrated ability to innovate will continue to drive our success in the future."

The Company generated normalized net income* of $26.2 million, or $0.16 per diluted share, in the fourth quarter of 2005, a 19 percent increase over the prior quarter normalized net income of $22.0 million, or $0.14 per diluted share. Full-year normalized net income for 2005 was $79.5 million, or $0.52 per diluted share, an improvement of $37.0 million over 2004. (*See Use of Non-GAAP Financial Measures below for definitions.)

Adjusted EBITDA* for the fourth quarter of 2005 was $30.6 million, up from $27.7 million in the prior quarter, and $18.6 million in the fourth quarter of 2004. Adjusted EBITDA was $101.4 million for the full year, up from $69.1 million in 2004. Adjusted EBITDA margins improved to 36 percent in 2005, up from 33 percent in 2004. (*See Use of Non-GAAP Financial Measures below for definitions.)

Cash from operations for the fourth quarter of 2005 was $27.7 million, a 42 percent increase over the prior quarter's cash from operations of $19.5 million, and a 78 percent increase over the fourth quarter of 2004. Full-year 2005 cash from operations was $82.8 million, up 62 percent over the prior year.

At December 31, 2005, the Company had approximately 152.9 million shares of common stock outstanding, including shares from the Company's most recent equity offering. At year-end, the Company had approximately $314 million of cash, cash equivalents and marketable securities.

Customers

The number of customers under long-term services contracts at the end of the fourth quarter increased by 80 to a record 1,910, a 4 percent increase over third quarter 2005.

"We have grown our recurring customer base by 46 percent year-over-year," Sagan said. "This is the result of momentum in important industries that increasingly rely on the Internet, including media and entertainment, online commerce, and software distribution, as well as adoption by major enterprises of our new application acceleration technology."

Sales through resellers and sales outside the United States accounted for 24 percent and 21 percent, respectively, of revenue for the fourth quarter and full-year 2005.

Quarterly Conference Call

Akamai will host a conference call today at 4:30 p.m. ET that can be accessed through 1-888-689-4521 (or 1-706-645-9202 for international calls). A live Webcast of the call may be accessed at www.akamai.com in the Investor section. In addition, a replay of the call will be available for one week following the conference through the Akamai Website or by calling 1-800-642-1687 (or 1-706-645-9291 for international calls) and using conference ID No. 4080712.

About Akamai

Akamai® is the leading global service provider for accelerating content and business processes online. More than 1,900 organizations have formed trusted relationships with Akamai, improving their revenue and reducing costs by maximizing the performance of their online businesses. Leveraging the Akamai EdgePlatform, these organizations gain business advantage today, and have the foundation for the emerging Web solutions of tomorrow. Akamai is "The Trusted Choice for Online Business." For more information, visit www.akamai.com.

Financial Statements

                 Condensed Consolidated Balance Sheets
                     (dollar amounts in thousands)
                              (unaudited)

                                           December 31,  December 31,
                                               2005          2004
                                           ------------- -------------
             Assets
Cash and cash equivalents                       $91,792       $35,318
Marketable securities                           199,886        34,380
Restricted marketable securities                    730           932
Accounts receivable, net                         52,162        30,333
Prepaid expenses and other current assets        10,428         7,706
                                           ------------- -------------
     Current assets                             354,998       108,669
Marketable securities                            17,896        34,065
Restricted marketable securities                  3,825         3,722
Property and equipment, net                      44,885        25,242
Goodwill and other intangible assets, net       136,786         5,128
Other assets                                      4,801         5,917
Deferred tax assets, net                        328,308             -
                                           ------------- -------------
     Total assets                              $891,499      $182,743
                                           ============= =============

   Liabilities and stockholders' equity
Accounts payable and accrued expenses           $54,471       $42,446
Other current liabilities                         7,405         4,320
                                           ------------- -------------
     Current liabilities                         61,876        46,766
Other liabilities                                 5,409         5,294
Convertible notes                               200,000       256,614
                                           ------------- -------------
     Total liabilities                          267,285       308,674
Stockholders' equity (deficit)                  624,214      (125,931)
                                           ------------- -------------
     Total liabilities and stockholders'
      equity                                   $891,499      $182,743
                                           ============= =============


            Condensed Consolidated Statements of Operations
             (amounts in thousands, except per share data)
                              (unaudited)

                      Three Months Ended           Twelve Months Ended
             ------------------------------------- -------------------
               Dec.     Sept.     Dec.     Sept.     Dec.      Dec.
                31,      30,       31,      30,       31,       31,
               2005     2005      2004     2004      2005      2004
             -------- --------- -------- --------- --------- ---------

Revenues     $82,657   $75,713  $57,576   $53,286  $283,115  $210,015

Costs and
 operating
 expenses:
 Cost of
  revenues
  (b)         16,084    15,295   11,173    11,748    55,655    46,150
 Research 
  and
  develop-
  ment         4,982     4,953    3,344     3,222    18,071    12,132
 Sales and
  marketing   22,965    19,803   15,017    12,965    77,876    55,663
 General 
  and
  admin-
  istrative
  (b)         15,266    14,568   13,463    11,874    53,014    47,055
 Amortization
  of other
  intangible
  assets       2,296     2,296       12        12     5,124        48
             -------- --------- -------- --------- --------- ---------
   Total 
    costs
    and
    oper-
    ating
    ex-
    penses    61,593    56,915   43,009    39,821   209,740   161,048
             -------- --------- -------- --------- --------- ---------
Operating
 income       21,064    18,798   14,567    13,465    73,375    48,967

Interest
 (income)
 expense, 
 net          (1,283)      567    1,319     1,533     1,067     8,055
Loss on early
 exting-
 uishment of
 debt              -     1,370      852       634     1,370     6,768
Loss on
 investments,
 net               -        27        1        79        27        69
Other
 (income)
 expense, net   (205)       63   (1,183)     (101)      507    (1,061)
             -------- --------- -------- --------- --------- ---------
Income before
 (benefit)
 provision
 for income
 taxes        22,552    16,771   13,578    11,320    70,404    35,136
(Benefit)
 provision
 for income
 taxes        (3,207) (255,489)     187        71  (257,594)      772
             -------- --------- -------- --------- --------- ---------
Net income   $25,759  $272,260  $13,391   $11,249  $327,998   $34,364
             ======== ========= ======== ========= ========= =========

Net income
 per share:
    Basic      $0.17     $1.96    $0.11     $0.09     $2.41     $0.28
    Diluted    $0.16     $1.71    $0.10     $0.08     $2.11     $0.25

Shares used
 in per share
 calc-
 ulations:
    Basic    148,293   139,204  126,261   125,618   136,167   124,407
    Diluted  170,305   160,362  147,306   147,294   156,944   146,595

(b) Includes depreciation (see supplemental tables for figures)


                      Three Months Ended           Twelve Months Ended
            --------------------------------------- ------------------
              Dec.      Sept.     Dec.      Sept.     Dec.      Dec.
               31,       30,       31,       30,       31,       31,
              2005      2005      2004      2004      2005      2004
            --------- --------- --------- --------- --------- --------

Supp-
 lemental
 financial
 data (in
 thousands):
Network-
 related
 depre-
 ciation      $4,766    $4,361    $2,731    $3,124   $15,514  $14,030
Other depre-
 ciation        $892      $881    $1,007    $1,024    $3,572   $4,731

Capital
 expen-
 ditures      $8,105    $8,531    $7,138    $5,346   $36,160  $20,101

Net
 increase
 (decrease)
 in cash,
 cash equiv-
 alents,
 and
 marketable
 securities $227,626  $(44,213) $(11,379)  $(2,329) $205,712 $(99,937)

End of
 period
 statistics:
 Number of
  customers
  under
  recurring
  contract     1,910     1,830     1,310     1,258
 Number of
  employees      784       766       605       598
 Number of
  deployed
  servers     18,599    18,092    15,075    15,064



            Condensed Consolidated Statements of Cash Flows
                        (amounts in thousands)
                              (unaudited)


                      Three Months Ended           Twelve Months Ended
              ------------------------------------- ------------------
                Dec.      Sept.    Dec.     Sept.      Dec.      Dec.
                 31,       30,      31,      30,        31,       31,
                2005      2005     2004     2004       2005      2004
              --------- --------- -------- -------- --------- --------

Cash flows
 from
 operating
 activities:
 Net income    $25,759  $272,260  $13,391  $11,249  $327,998  $34,364
 Adjustments
  to
  reconcile
  net income
  to net cash
  provided by
  operating
  activities:
   Depre-
    ciation 
    and
    amort-
    ization 
    of
    deferred
    financing
    costs        8,164     7,792    4,051    4,469    25,170   20,206
   Equity-
    related
    compen-
    sation       1,582     1,383      236      249     3,849    1,292
   Change in
    deferred
    tax
    assets,
    net,
    including
    release of
    deferred
    tax asset
    valuation
    allowance   (3,482) (255,345)     408        -  (258,669)     408
   Non-cash
    portion of
    loss on
    early
    exting-
    uishment 
    of
    debt             -       481      292      178       481    2,453
   Loss on
    invest-
    ments,
    property
    and
    equipment
    and 
    foreign
    currency,
    net            143       161     (437)     (72)      850     (319)
   Provision
    for
    doubtful
    accounts       127       566      191     (186)    1,147     (231)
   Changes in
    operating
    assets and
    liab-
    ilities:
    Accounts
     re-
     ceivable,
     net        (8,663)   (4,194)  (1,411)  (2,076)  (19,455)  (8,516)
    Prepaid
     expenses
     and other
     current
     assets         65     2,567   (1,441)   2,057     1,483    3,053
    Accounts
     payable,
     accrued
     expenses
     and other
     current
     liab-
     ilities     2,754    (6,818)      38      281    (1,032)    (130)
    Accrued
     restr-
     ucturing     (415)     (710)    (352)    (354)   (1,816)  (1,630)
    Deferred
     revenue     1,567     1,374      907   (2,016)    3,267     (329)
    Other non-
     current
     assets and
     liab-
     ilities        72       (18)    (298)     769      (475)     616
              --------- --------- -------- -------- --------- --------
  Net cash
   provided by
   operating
   activities:  27,673    19,499   15,575   14,548    82,798   51,237
              --------- --------- -------- -------- --------- --------

Cash flows
 from
 investing
 activities:
   Cash
    acquired
    through
    business
    com-
    bination         -         -        -        -     1,717        -
   Purchases
    of
    property
    and
    equipment
    and
    capital-
    ization of
    internal-
    use
    software    (8,105)   (8,531)  (7,138)  (5,346)  (36,160) (20,101)
   Purchase of
    invest-
    ments     (183,014)   (6,534) (14,814) (12,325) (215,633)(187,674)
   Proceeds
    from sale
    of
    property
    and
    equipment        -         -        -        -         -        9
   Proceeds
    from sales
    and matur-
    ities of
    invest-
    ments       13,134    33,531   15,040   15,588    66,099  211,753
   Decrease in
    restricted
    cash held
    for note
    re-
    purchases        -         -        -        -         -    5,000
   Decrease in
    restricted
    investments
    held for
    security
    deposits         -       202        -       96       202       96
              --------- --------- -------- -------- --------- --------
  Net cash
   (used in)
   provided by
   investing
   activities (177,985)   18,668   (6,912)  (1,987) (183,775)   9,083
              --------- --------- -------- -------- --------- --------

Cash flows
 from
 financing
 activities:
   Payments on
    capital
    leases        (420)     (171)    (141)    (137)     (818)    (543)
   Proceeds
    from the
    issuance
    of 1% con-
    vertible
    senior
    notes, net
    of
    financing
    costs            -         -        -        -         -   24,313
   Repurchase
    and
    retirement
    of 5 1/2%
    covertible
    sub-
    ordinated
    notes            -   (56,614) (24,875) (13,115)  (56,614)(169,386)
   Proceeds
    from
    equity
    offering,
    net of
    financing
    costs      202,068         -        -        -   202,068        -
   Proceeds
    from the
    issuance
    of common
    stock
    under
    stock
    option and
    employee
    stock
    purchase
    plans        6,741     1,933    3,863    1,095    14,462   13,754
              --------- --------- -------- -------- --------- --------
  Net cash
   provided by
   (used in)
   financing
   activities  208,389   (54,852) (21,153) (12,157)  159,098 (131,862)
              --------- --------- -------- -------- --------- --------

  Effects of
   exchange
   rate
   translation
   on cash and
   cash
   equivalents    (369)     (259)   1,587      357    (1,647)   1,208
              --------- --------- -------- -------- --------- --------

  Net increase
   (decrease)
   in cash and
   cash 
   equivalents  57,708   (16,944) (10,903)     761    56,474  (70,334)
  Cash and
   cash 
   equivalents,
   beginning of
   period       34,084    51,028   46,221   45,460    35,318  105,652
              --------- --------- -------- -------- --------- --------
  Cash and
   cash 
   equivalents, 
   end
   of period   $91,792   $34,084  $35,318  $46,221   $91,792  $35,318
              ========= ========= ======== ======== ========= ========

*Use of Non-GAAP Financial Measures

In addition to providing financial measurements based on generally accepted accounting principles in the United States of America (GAAP), Akamai has historically provided additional financial metrics that are not prepared in accordance with GAAP (non-GAAP). Recent legislative and regulatory changes discourage the use of and emphasis on non-GAAP financial metrics and require companies to explain why non-GAAP financial metrics are relevant to management and investors. We believe that the inclusion of these non-GAAP financial measures in this press release helps investors to gain a meaningful understanding of our future prospects, consistent with how management measures and forecasts our performance, especially when comparing such results to previous periods or forecasts. Our management uses these non-GAAP measures, in addition to GAAP financial measures, as the basis for measuring our core operating performance and comparing such performance to that of prior periods and to the performance of our competitors. This measure is also used by management in their financial and operating decision-making.

Akamai defines "Adjusted EBITDA" as net income, before interest, taxes, depreciation, amortization, equity-related compensation, restructuring charges and benefits, certain gains and losses on equity investments, foreign exchange gains and losses, release of the deferred tax asset valuation allowance and loss on early extinguishment of debt. Akamai considers Adjusted EBITDA to be an important indicator of the company's operational strength and performance of its business and a good measure of the company's historical operating trend.

Adjusted EBITDA eliminates items that are either not part of the company's core operations, such as investment gains and losses, foreign exchange gains and losses, early debt extinguishment and net interest expense, or do not require a cash outlay, such as equity-related compensation and impairment of intangible assets. Adjusted EBITDA also excludes depreciation and amortization expense, which is based on the Company's estimate of the useful life of tangible and intangible assets. These estimates could vary from actual performance of the asset, are based on historic cost incurred to build out the company's deployed network, and may not be indicative of current or future capital expenditures.

Akamai defines "Adjusted EBITDA margin" as a percentage of adjusted EBITDA over revenue. Akamai considers Adjusted EBITDA margin to be an indicator of the company's operating trend and performance of its business in relation to its revenue growth.

Akamai defines "capital expenditures" or "capex" as purchases of property and equipment and capitalization of internal-use software development costs. Capital expenditures or capex are disclosed in Akamai's condensed consolidated statement of cash flows in the company's most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

Akamai defines "normalized net income" as net income before amortization of intangible assets, equity-related compensation, certain gains and losses on equity investments, release of the deferred tax asset valuation allowance and loss on early extinguishment of debt. Akamai considers normalized net income to be another important indicator of the overall performance of the company because it eliminates the effects of events that are either not part of the company's core operations or are non-cash.

Adjusted EBITDA and normalized net income should be considered in addition to, not as a substitute for, the company's operating income and net income, as well as other measures of financial performance reported in accordance with GAAP.

Reconciliation of Non-GAAP Financial Measures

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, the company is presenting the most directly comparable GAAP financial measure and reconciling the non-GAAP financial metrics to the comparable GAAP measures.

     Reconciliation of GAAP net income to normalized net income
                          and Adjusted EBITDA
             (amounts in thousands, except per share data)

                      Three Months Ended           Twelve Months Ended
              ------------------------------------ -------------------
                Dec.     Sept.     Dec.     Sept.     Dec.      Dec.
                 31,      30,       31,      30,       31,       31,
                2005     2005      2004     2004      2005      2004
              -------- --------- -------- --------- --------- --------

Net income    $25,759  $272,260  $13,391   $11,249  $327,998  $34,364

Amortization
 of intangible
 assets         2,296     2,296       12        12     5,124       48
Equity-related
 compensation   1,582     1,383      236       249     3,849    1,292
Loss on
 investments,
 net                -        27        1        79        27       69
Release of the
 deferred tax
 asset
 valuation
 allowance     (3,482) (255,345)       -         -  (258,827)       -
Loss on early
 exting-
 uishment of
 debt               -     1,370      852       634     1,370    6,768
              -------- --------- -------- --------- --------- --------

Total
 normalized
 net income:   26,155    21,991   14,492    12,223    79,541   42,541

Interest
 (income)
 expense, net  (1,283)      567    1,319     1,533     1,067    8,055
Provision
 (benefit) for
 income taxes     275      (144)     187        71     1,233      772
Depreciation
 and
 amortization   5,658     5,242    3,738     4,148    19,086   18,761
Other (income)
 expense, net    (205)       63   (1,183)     (101)      507   (1,061)
              -------- --------- -------- --------- --------- --------

Total Adjusted
 EBITDA:      $30,600   $27,719  $18,553   $17,874  $101,434  $69,068
              ======== ========= ======== ========= ========= ========

Normalized net
 income per
 share:
    Basic       $0.18     $0.16    $0.11     $0.10     $0.58    $0.34
    Diluted     $0.16     $0.14    $0.10     $0.09     $0.52    $0.31

Shares used in
 normalized
 per share
 calculations:
    Basic     148,293   139,204  126,261   125,618   136,167  124,407
    Diluted   170,305   159,994  147,306   147,294   156,944  146,595

Akamai Statement Under the Private Securities Litigation Reform Act

The release contains information about future expectations, plans and prospects of Akamai's management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements concerning the expected growth and development of our business. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, unexpected increases in Akamai's use of funds, loss of significant customers, failure to increase our revenue and keep our expenses consistent with revenues, the effects of any attempts to intentionally disrupt our services or network by unauthorized users or others, failure to have available sufficient transmission capacity, a failure of Akamai's services or network infrastructure, failure to maintain the prices we charge for our services, inability to realize the benefits of our net operating loss carryforward, delay in developing or failure to develop new service offerings or functionalities, and if developed, lack of market acceptance of such service offerings and functionalities, and other factors that are discussed in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.

In addition, the statements in this press release represent Akamai's expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai's expectations or beliefs as of any date subsequent to the date of this press release.