Exhibit 99.1

   BLUE COAT ANNOUNCES NASDAQ LISTING AND HEARING REVIEW COUNCIL'S DECISION TO
     CALL BLUE COAT MATTER FOR REVIEW AND STAY DELISTING OF BLUE COAT STOCK

    SUNNYVALE, Calif., Jan. 29 /PRNewswire-FirstCall/ -- Blue Coat(R) Systems,
Inc. (Nasdaq: BCSI) today reported that the Nasdaq Stock Market has notified
Blue Coat that it will continue the listing of Blue Coat Common Stock pending a
review by the Listing and Hearing Review Council of the Nasdaq Stock Market (the
"Listing Council"). The Listing Council has called for review the earlier
decision of the Nasdaq Listing Qualifications Panel (the "Panel") requiring Blue
Coat to file all required restatements and delinquent periodic reports by
January 29, 2007, and has stayed any suspension of trading of Blue Coat's
securities pending further action by the Listing Council.

    Blue Coat may submit additional information to the Listing Council by March
30, 2007. The Listing Council will then review the Panel's decision on the
written record. There can be no assurance that the Listing Council will
determine that Blue Coat should remain listed on Nasdaq subsequent to March 30,
2007.

    As Blue Coat reported previously, on November 13, 2006 the Panel notified
Blue Coat that it had determined to continue Blue Coat's listing subject to the
filing by January 29, 2007 of all required restatements, delinquent periodic
reports, communication with the Panel about the results of the independent
committee's investigation, and compliance with all other requirements for
continued listing on the Nasdaq Stock Market. On January 18, 2007, Blue Coat
requested an extension of the January 29, 2007 deadline because Blue Coat, in
consultation with its independent accountants, recently decided to seek
pre-clearance of its proposed accounting treatment for the financial
restatements by submitting a letter to the Office of the Chief Accountant (the
"OCA") of the Division of Corporation Finance, U.S. Securities and Exchange
Commission. Blue Coat expects to submit its letter to the OCA during the week of
January 29, 2007. Blue Coat expects to file all required restatements and
delinquent periodic reports promptly upon receiving pre- clearance from OCA.

    About Blue Coat Systems

    Blue Coat secures Web communications and accelerates business applications
across the distributed enterprise. Blue Coat's family of appliances and
client-based solutions - deployed in branch offices, Internet gateways, end
points, and data centers - provide intelligent points of policy-based control
enabling IT organizations to optimize security and accelerate performance
between users and applications. Blue Coat has installed more than 30,000
appliances worldwide and is ranked #1 by IDC in the Secure Content and
Application Delivery segment. Blue Coat is headquartered in Sunnyvale,
California, and can be reached at (408) 220-2200 or www.bluecoat.com.

    FORWARD LOOKING STATEMENTS: The statements contained in this press release
concerning Blue Coat's filing of all required financial restatements and
delinquent periodic reports, and Blue Coat's continued listing on Nasdaq, are
forward-looking statements. All forward-looking statements included in this
press release are based upon information available to Blue Coat as of the date
hereof, and Blue Coat assumes no obligation to update any such forward- looking
statements. Actual results may differ materially from those projected in such
statements due to various factors, including but not limited to, the final
conclusions of the Board of Directors, the Audit Committee, the independent
committee, and Blue Coat's independent public accountants concerning matters
related to Blue Coat's stock option grants; Blue Coat's inability to comply with
requirements imposed by Nasdaq or the Listing Council for continued listing;
Blue Coat's inability to file its Form 10-K and Form 10-Q in accordance with the
Securities Exchange Act of 1934; the review and audit by Blue Coat's independent
auditor of Blue Coat's fiscal 2006 financial statements; and additional
information or actions resulting from the continued review by Blue Coat's
independent committee.

SOURCE  Blue Coat(R) Systems, Inc.
    -0-                             01/29/2007
    /CONTACT:  media, Steve Schick, +1-408-220-2076, or
steve.schick@bluecoat.com, or investors, Carla Chun, +1-408-220-2318, or
carla.chun@bluecoat.com, both of Blue Coat Systems/
    /Web site:  http://www.bluecoat.com/