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Intel Invests in VMware

PALO ALTO, Calif. and SANTA CLARA, Calif. -- VMware, Inc., the global leader in software for
virtualization solutions today announced that Intel Corporation, through its
global investment arm, Intel Capital has agreed to become an investor in
VMware. VMware's base virtualization platform virtualizes the Intel
architecture. Intel microprocessors comprise the majority of the systems on
which VMware's virtualization products are deployed.

Intel Capital will invest $218.5 million in VMware's Class A common stock
subject to customary regulatory and other closing conditions including Hart-
Scott-Rodino (HSR) review. At the completion of VMware's planned initial
public offering and upon closing of the investment, Intel will own
approximately 2.5 percent of VMware's total outstanding common stock (less
than one percent of the combined voting power of VMware's outstanding common
stock). Pursuant to the investment, an Intel executive is expected to be
appointed to the VMware Board of Directors.

Intel's investment is intended to foster strengthened inter-company
collaboration towards accelerating VMware virtualization product adoption on
Intel architecture and reinforcing the value of virtualization technology for

VMware Inc.