They seem to use a combination of packet stripping, caching and other sorts of trickery to reduce bandwidth use, although we're particularly intrigued by their promise of reducing SQL traffic latency.
From what we've heard from folks who've tried it, the performance on SQL traffic isn't great, but the reduction for Exchange and document serving traffic is very impressive.
Company site
http://www.riverbed.com/
Riverbed at the International Legal Technology Association
http://home.businesswire.com/
Overview of their application streamlining technology
http://www.riverbed.com/technology/app_streamlining/
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