Press Release

ExaGrid Systems Appoints Bill Andrews as President and CEO

Tech Industry Veteran Brings a Record of Success Driving Revenues and Building Partnerships

WESTBOROUGH, Mass. July 25, 2005 -ExaGrid Systems, the leader in Self-Protecting Storage, which includes online data backup, data recovery and integrated disaster recovery, today announced the appointment of Bill Andrews as president and CEO. With more than 20 years of experience driving aggressive, revenue-generating sales and partner activities for high-growth, emerging technology companies, Andrews will lead ExaGrid's expansion as the company capitalizes on early successes in providing data protection solutions. Most recently, Andrews was the vice president of marketing for Pedestal Software, a leader in security auditing, where he played a significant role in successfully positioning Pedestal for its ultimate acquisition by IT lifecycle management company Altiris.

Since the launch of ExaGrid's Advanstor storage and data protection solution, the company has continued to grow a customer base across diverse industries. Mark Kaufman, who during this time simultaneously held the positions of CEO and EVP of Engineering, will continue to lead the company's technical directions as EVP of Engineering, while taking on the added responsibility of building and managing the customer support organization.

"Bill brings tremendous sales and marketing strength to our management team," said Kaufman. "It is an exciting time for the company, and he can help take us to the next level as we expand our customer base and increase market penetration.

Andrews has demonstrated success in leading marketing, sales and product teams, and moving emerging players into leadership positions. Prior to Pedestal Software, Andrews was vice president of marketing and sales for eDial, a developer of Voice over IP software. Previous experience included StarBurst Software, where Andrews repositioned the company and drove 100 percent annual growth. StarBurst was acquired by Adero. Additional experience included marketing and sales roles for storage company LiveVault - an online backup and recovery solutions provider - as well as vice president of marketing and sales positions with Microcom and Bitstream.

"ExaGrid has done an outstanding job of delivering an innovative data protection solution with integrated backup and disaster recovery. Advanstor lowers IT costs, improves data recovery, and simplifies the complexity of managing storage and data protection," said Andrews. "My goal is to build on our established strengths and significantly expand the marketing and sales efforts. We will further penetrate the vertical markets that create large amounts of data that must be protected, such as legal, architectural, engineering and financial services. I look forward to leading ExaGrid through its next phase of growth."

Simplified Data Protection
Advanstor enables organizations to dramatically reduce the cost and complexity associated with fully protecting data. It is the first self-managing/self-healing distributed storage solution that integrates primary storage with a full suite of local and remote data protection functions - all driven under one management console from a single, easily defined policy. In contrast to other disk-to-disk backup or virtual tape library (VTL) solutions, it addresses the unreliable and insecure nature of tape-centric data protection without perpetuating, or even aggravating, the complexity of managing multiple, proprietary point products. Advanstor also uniquely addresses the need for disaster recovery and offsite vaulting. Delivered as an appliance and supporting industry standard interfaces, the innovative and patent-pending Advanstor solution can easily and seamlessly be deployed as a robust and intelligent foundation for data management applications such as email archiving and remote office replication.

About ExaGrid
ExaGrid Systems, Inc. is a leading provider of Intelligent Disk-based Data Protection Systems. ExaGrid® works in conjunction with existing backup applications to provide cost effective, disk-based data protection. With ExaGrid, organizations can leverage technology investments while supplementing or replacing their tape libraries with a disk-based solution.

Extremely cost effective, ExaGrid provides data reduction for each version through byte-level delta technology, which requires far less disk storage than traditional data protection solutions. Storing deltas for each version instead of storing full file copies reduces the amount of disk space needed to at least 20 to 1, and can be much higher depending upon retention periods. ExaGrid delivers a turn-key, plug-and-play solution at 50% to 80% less than the cost of SATA or ATA disk.

With ExaGrid, organizations can replace onsite tape backups with a disk-based solution and still retain or supplement their existing offsite tape strategy.

The company is located in Westborough, Massachusetts, and is privately held with funding from top-tier investors Highland Capital Partners and Sigma Partners. ExaGrid Systems is located in Westborough, Massachusetts. For more information, call 800-868-6985 or visit us online at www.exagrid.com.

2000 West Park Drive, Suite 110
Westborough, MA 01581
508-898-2872

For additional information contact:
Wayne St. Amand
ExaGrid Systems, Inc.
(508) 898-2872 ext. 286
wstamand@exagrid.com