ExaGrid Accelerates Sales

WESTBOROUGH, Mass. -- ExaGrid Systems, Inc. (http://www.exagrid.com), the leader in cost-effective and scalable disk-based backup solutions with data de-duplication, today announced record sales for the second quarter ending June 30, 2008. Second quarter sales for the company were up 41% compared to the previous quarter, Q1 2008, and up 164% vs. the same quarter last year. ExaGrids compound quarter-over-quarter growth rate from Q4 2005, when it began shipping its disk-based backup solution, to Q2 2008, is 35%.

Along with strong sales results, the company continued to execute in a variety of important areas during the quarter. Key achievements in Q2 2008 included the following:

Worldwide Channel Expansion: More than 25 new channel partners joined ExaGrid’s worldwide VAR Partner Program during the quarter, including new partners throughout the US, Canada, UK, Germany, Benelux, the Nordics and South Africa. Joint sales and marketing programs also took place with dozens of channel partners throughout North America and EMEA.

Support For DELL PS Series iSCSI SANS With New ExaGrid Backup Gateway Product: In Q2, ExaGrid expanded its product line with the addition of the world’s first de-duplication gateway for iSCSI storage, the ExaGrid iSCSI De-duplication Gateway™. The gateway has been tested with DELL® EqualLogic™ PS5000 Series iSCSI arrays to enable economical disk-based backup solutions that are easy to deploy and manage.

Leading Analyst Firm, Gartner, Features ExaGrid Customer Case Study: ExaGrid customer, Adventist Health, spoke at the recent Gartner IT Infrastructure, Operations & Management Summit, and discussed its implementation of ExaGrid’s Disk-based Backup with Data De-duplication solution as part of the “Experiences with Data De-duplication Solutions” end-user case study session. Gartner also named ExaGrid to its “Cool Vendors in Data Protection, 2008” list as part of its recent report, “Cool Vendors in Data Protection, 2008,” authored by Dave Russell and John P. Morency.Commercial Customer Acquisition: ExaGrid continues to win against its competitors, gaining a long list of new customers in key industries such as: Healthcare, Legal, Engineering Services, Manufacturing, Oil and Gas, Education and State/Local Government. View real-world ExaGrid customer case studies, including success stories from leaders like Hitachi Consulting, Kawasaki and Konica Minolta, via: www.exagrid.com/why_exagrid/customer_success_stories.asp.

Federal Government Customer Acquisition: ExaGrid has added many Federal Government customers, including departments within the General Services Administration (GSA) and the Environmental Protection Agency (EPA).

Expanded Product Capabilities: During the quarter, ExaGrid announced the industry’s first 30TB disk-based backup system with data de-duplication and a scalable GRID architecture. This product enhancement allows customers to store a 30TB full backup, plus weeks or months of retention, in a single high-performance GRID system.

Continued Industry Partnerships: In Q2, ExaGrid continued joint sales and marketing campaigns with several backup software and industry leaders, including DELL, Symantec and CommVault. Joint ExaGrid and DELL/CommVault/Symantec on-demand Webcasts are available now via: http://www.exagrid.com/news_and_events/disk-based_backup_we bcasts_and_podcasts.asp (Note: Due to the length of this URL, it may be necessary to copy and paste it into your Internet browser’s URL address field)

“With the highest performance and most scalable product at the best price, ExaGrid continues to be a fast-growing leader in the global market for disk-based backup solutions with data de-duplication,” said Bill Andrews, president and CEO of ExaGrid Systems. “Our worldwide sales to a diverse set of mid-sized enterprise companies increased substantially in Q2 2008.”ExaGrid Systems Inc.