Press Release

Contact:

Bill Hobbib ExaGrid Systems, Inc. (508) 898-2872 ext. 527

Matt Landry Matter Communications for ExaGrid Systems 978-518-4510

ExaGrid Systems Posts Record Q4 and Full Year 2011 Sales Results

Company Grows for 6th Consecutive Year, Tops 1,200 Customers with Over 4,000 Installed Systems and Gains Global Market Share for Disk Backup with Data Deduplication

Westborough, Mass., January 17, 2012 – ExaGrid Systems, Inc. (http://www.exagrid.com) the leader in cost-effective and scalable disk-based backup solutions with data deduplication, today announced that it achieved record Q4 2011 and full year 2011 sales results. During the quarter, the company expanded its customer base to more than 4,000 systems installed at over 1,200 customers and gained significant new market share. ExaGrid grew over 30 percent from 2010 to 2011, marking its sixth consecutive year of year-over-year growth.

Along with strong sales results, the company continued to execute in a variety of important areas during the quarter. Key achievements in Q4 and throughout 2011 included the following:

• Growing Global Customer Base and Market Share:  ExaGrid grew its customer base to more than 1,200 customers. ExaGrid has the industry’s largest installed base of GRID-scalable disk backup appliances with data deduplication in mid-market and small enterprise companies, with more than 4,000 systems installed worldwide. 50 percent of ExaGrid’s customers have completely eliminated tape in their storage environments using ExaGrid appliances for both onsite and offsite disaster recovery.
• Worldwide Channel Growth:  In 2011, ExaGrid added more than 100 new reseller partners to its program, which expanded the base of ExaGrid partners to nearly 500 VARs worldwide. ExaGrid delivered 95 percent of the company's business through channel partners and continued to successfully scale its global channel sales model to meet growing business demands.
• Industry Recognition and Leadership:  ExaGrid earned a number of industry achievements in 2011, including the following:

• ExaGrid was named to the Wall Street Journal's list of Top 50 Venture-Funded Companies. ExaGrid was the only Massachusetts-based company to make the list, and the only company in all of New England named to the list.
• ExaGrid’s EX13000E was rated “Best-in-Class” in the 2011 DCIG Midrange Deduplication Appliance Buyer’s Guide, beating out 37 other deduplication solutions, including EMC Data Domain, for its scalability and product capabilities. ExaGrid appliances secured the three top ratings and seven of the top ten.
• ExaGrid was named a Champion in the 2011 Info-Tech Disk Backup Vendor Landscape and rated as ‘exemplary’ for providing excellent value to customers, having a strong market presence and being an acknowledged industry trend-setter.
• ExaGrid customer, Strategic Hotels & Resorts, won “Best Deployment Scenario – Data Recovery” in Info Security’s 2011 Best Deployment Awards.
• ExaGrid was named “One to Watch” by Storage Magazine at the annual Storage Awards in London.

• Customer Support Recognition:  ExaGrid received world-class Net Promoter Scores (NPS) from the 2011 Net Promoter Survey for its product and customer support—at a level comparable to Apple in consumer Net Promoter benchmarks. The majority of ExaGrid customers reported backup window reductions of 50 percent to more than 90 percent faster restore times and less IT time spent managing backups.
• Product Enhancements:  During Q4, ExaGrid added support for IBM Tivoli Storage Manager and achieved Ready for Tivoli certification from IBM. During the year, ExaGrid also added support for Veeam Software’s Backup and Replication™. Only ExaGrid offers a capability for Veeam customers to instantly recover an entire virtual machine (VM), individual application objects and individual files from the same fully tested image-based backup. ExaGrid also added support for SQL Safe and RedGate for SQL backups. This adds to a long list of supported backup applications from Symantec, HP, EMC, CommVault, CA, Quest, and others.
• Technology Leadership:  During the year, ExaGrid received the company’s fourth patent, US Patent # 7,925,623. This new patent covers ExaGrid’s unique architecture for a two-tiered backup storage system with a front-end landing space and back-end data deduplication repository.
• Strengthened Industry Partnerships:  ExaGrid and Veeam Software announced their partnership to improve the recoverability of virtual machines (VMs), featuring a joint product integration that provides faster backups, more efficient data storage and retrieval, and Instant VM Recovery from the ExaGrid appliance. ExaGrid also launched a partnership with LaserVault to provide new integrated solutions that support the IBM iSeries/AS-400.
• More than 270 Real-World ExaGrid Customer Success Stories and Videos:  First-hand experiences with ExaGrid are published on the company’s website, including case studies from industry leaders like Connecticut Transit, Dot Foods, Prestige Brands, Prudential Douglas Elliman, State University of New York, U.S. Probation Office, and Volkswagen Credit,. These 270 testimonials represent more published customer endorsements and success stories than all competitors combined.

“With our record performance in Q4 and throughout the entire year, ExaGrid has now achieved our sixth consecutive year of growth,” said Bill Andrews, president and CEO of ExaGrid Systems. “Throughout 2011, sales and deployments of ExaGrid’s award-winning disk-based backup with data deduplication systems increased significantly. Our best-in-class purpose-built backup appliance provides the best performance, scalability, price and customer support, and is a perfect solution to meet the needs of mid-market and small enterprise companies that require faster, more reliable backups and also don’t want their backup windows or backup system costs to explode as data grows. We’re excited about leveraging the strong business foundation we’ve built to continue our market share growth and product leadership in 2012.”

About ExaGrid’s Technology:
The ExaGrid system is a plug-and-play disk backup appliance that works with existing backup applications and enables faster and more reliable backups and restores. Customers report that backup time is reduced by 30 to 90 percent over traditional tape backup. ExaGrid’s patented byte-level data deduplication technology and most recent backup compression reduces the amount of disk space needed by a range of 10:1 to as high as 50:1 or more, resulting in a cost comparable to traditional tape-based backup.

About ExaGrid Systems, Inc.:

ExaGrid offers the only disk-based backup appliance with data deduplication purpose-built for backup that leverages a unique architecture optimized for performance, scalability and price. The combination of post-process deduplication, most recent backup cache, and GRID scalability enables IT departments to achieve the shortest backup window and the fastest, most reliable restores, tape copy, and disaster recovery without performance degradation or forklift upgrades as data grows. With offices and distribution worldwide, ExaGrid has more than 4,000 systems installed at more than 1,200 customers, and 270 published customer success stories.

For more information, contact ExaGrid at 800-868-6985 or visit www.exagrid.com.  Visit “ExaGrid’s Eye on Deduplication” blog: http://blog.exagrid.com/.

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ExaGrid is a registered trademark of ExaGrid Systems, Inc. All other trademarks are the property of their respective holders.