Company Continues to Gain Global Market Share for Disk-Based Backup Appliances with Data Deduplication

London — April 7, 2009 — ExaGrid Systems, Inc. (http://www.exagrid.com), the leader in cost-effective and scalable disk-based backup solutions with data deduplication, today announced another record quarter. First quarter sales for the company showed strong sequential quarter-over-quarter growth and were up 120% compared to the same quarter last year. Channel partners contributed more than 60% of Q1’s total sales as ExaGrid continued to make progress toward an all-channel model. During the quarter, ExaGrid became the first vendor to publish more than 100 disk backup with data deduplication customer success stories—more than all other vendors in the space combined.

With over 1,300 systems installed in more than 600 unique locations at more than 350 customers, ExaGrid has the industry’s second largest installed base of disk-based backup appliances with data deduplication in mid-market/small enterprise companies.

Along with strong sales results, the company continued to execute in a variety of important areas during the quarter. Key achievements in Q1 2009 included the following:

• Growing Global Market Share:  Now with more than 350 customers, ExaGrid continues to grow its customer base and share of the market. A recent study conducted by TheInfoPro, an independent research firm, showed that ExaGrid Systems is the second most installed disk backup with data deduplication appliance vendor cited by study respondents in mid-market/small enterprise companies. ExaGrid targets customers with 1TB to 100TBs of primary data to be backed up.

• Customer Acquisition:  ExaGrid continues to win against its competitors, gaining a long list of new customers throughout the world in key industries such as: Healthcare, Legal, Engineering Services, Manufacturing, Oil and Gas, Education and Federal/State/Local Government. View more than 100 real-world ExaGrid customer case studies on the ExaGrid web site, including success stories from leaders like Adventist Health, Four Seasons Resort, Kawasaki, Kingston Technology, Konica Minolta and Morningstar, via: http://www.exagrid.com/why_exagrid/customer_success_stories.asp.

• Global Channel Growth:  During the quarter ExaGrid added more than a dozen partners in the US, EMEA and Asia-Pac including key partners CDW, Zones and PC Connection, to its global partner base and now has hundreds of VARs and several key distributors throughout the world.  ExaGrid continues to invest in building a robust global channel.

• Continued Industry Partnerships:  In Q1, ExaGrid continued joint sales and marketing campaigns with several backup software and industry leaders, including Symantec and Vizioncore. Joint ExaGrid and Symantec/Vizioncore on-demand Webcasts are available now via:
http://www.exagrid.com/news_and_events/disk-based_backup_webcasts_and_podcasts.asp

“ExaGrid’s financial performance continues to be strong as we increased our worldwide sales to mid-market and small enterprise companies,” said Bill Andrews, president and CEO of ExaGrid Systems. “During Q1 we made significant progress in our drive for technology leadership and market share growth. With the highest performance and most scalable product at the best price, ExaGrid continues to be a key player in the global market for tape backup replacement with disk backup solutions that use data deduplication technology.”