[April 10, 2012]

ExaGrid Solidifies Position as Leading Disk Backup with Deduplication Vendor for Mid-Market and Small Enterprise

ExaGrid Systems, Inc. (http://www.exagrid.com) the leader in scalable and cost-effective disk-based backup solutions with data deduplication, today announced that the company grew sales by 32% in Q1 2012 compared to Q1 of 2011, further strengthening its dominant position for GRID-scalable disk backup with deduplication systems in the mid-market and small enterprise.

Along with strong sales growth, the company continued to execute in a variety of important areas during the quarter. Key achievements in Q1 2012 include the following:

• Expanding Global Customer Base and Market Share: With more than 4,200 systems installed worldwide, ExaGrid has grown its customer base to more than 1,300 customers.
  • ExaGrid extended its position as the vendor with the largest installed base of GRID-scalable disk backup appliances with data deduplication in the mid-market and small enterprise markets.
  • Over 50 percent of ExaGrid's new customers have eliminated tape and are replicating their data to an ExaGrid appliance at an offsite location for Disaster Recovery.
  • The company continued to execute its global growth strategy, with increasing sales in the EMEA and Asia-Pacific regions.
  • 280 ExaGrid Customer Success Stories and video testimonials describing first-hand experiences with ExaGrid are published on the company's website, including new case studies from leaders such as Barneys New York, ClearVision Optical, Concur, Mt. Sinai Medical Center, and the University System of Georgia.
• Growth in Enterprise: ExaGrid has continued to grow its base of customers that require the backup of large amounts of primary data.
  • ExaGrid continues to increase the number of customers that reqired over 100TB of primary data to be backed up.
  • ExaGrid's disk backup with deduplication system uses a GRID architecture, which allows it to scale up to 130TB for a full backup without forklift upgrades or product obsolescence. Customers can easily expand capacity by adding full appliance nodes to the grid, maintaining consistently short backup windows with no backup window expansion as data grows. The largest ExaGrid configuration supports a total backup data capacity of up to 2 petabytes of data.
• Global Channel Growth: ExaGrid continued adding new channel partnerships to the company's network of nearly 500 VARS around the world and delivered 95 percent of the company's business through channel partners.
  • As a result of its strong international channel sales efforts, ExaGrid has continued expanding the company's customer base in the EMEA region and has also seen growing sales in the Asia Pacific region, with new partners signed in Singapore, Japan, Hong Kong, Malaysia, and Australia.
• Industry Recognition and Leadership: ExaGrid earned the following industry awards in Q1 2012:
  • In February 2012, ExaGrid was named in a survey of Business Solutions magazine's VAR subscribers as a Best Channel Vendor in 2012. ExaGrid achieved a total score of 4.52 out of 5 for service and support, channel loyalty, channel program, product features, product reliability, product innovation, and VAR margins.
  • Storage Magazine/SearchStorage selected ExaGrid's EX13000E disk backup appliance as a finalist in the Backup Hardware category of the magazine's 2011 Product of the Year Awards.

• Bill Andrews, president and CEO for ExaGrid Systems: "ExaGrid ended Q1 in a strong competitive position in the mid-market and small enterprise. We continued to differentiate ourselves from other disk-based backup systems based on our best-in-class backup and restore performance and unique architecture for cost-effective scalability. Customers with larger data size backups represent a growing share of our business. This rapidly growing segment recognizes the compelling value of our disk-based systems that permanently shorten the backup window as data grows and instantly restore virtual machines and files, protecting the IT backup budget over time."

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 backup window expansion or forklift upgrades as data grows. With offices and distribution worldwide, ExaGrid has more than 4,200 systems installed at more than 1,300 customers, and more than 280 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/.

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

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