Company Gains Global Market Share for Disk Backup with Data Deduplication; Posts Eighth Straight Quarter of Record Growth

London July 15, 2009 – ExaGrid Systems, Inc. (http://www.exagrid.com) the leader in cost-effective and scalable disk-based backup solutions with data deduplication which replace tape libraries behind customers’ existing backup servers, today announced another record quarter. Q2 sales for the company were up 70 percent compared to the same quarter last year. This is ExaGrid’s eighth consecutive growth quarter. The continued growth is due to ExaGrid’s product and price leadership, and its move many quarters ago to a channel-centric model. Channel partners contributed a record 66 percent of Q2’s total sales.

With more than 1,500 systems installed in more than 650 unique locations at 400 customers, ExaGrid has the industry’s second-largest installed base of disk-based backup appliances with data deduplication in mid-market/small enterprise companies. ExaGrid also has 120 customer success stories on its web site, which is more than all other disk-based backup with data deduplication vendors combined.

Along with strong sales results, the company continued to execute in a variety of important areas during the quarter. Key achievements in Q2 2009 included the following:

•   Growing Global Market Share: Now with 400 customers, ExaGrid continued to grow its customer base and worldwide share of the market. ExaGrid targets customers with 1TB to 100TBs of primary data to be backed up.

•   Global Channel Growth: ExaGrid continued to add partners in the US, Latin America, EMEA and Asia-Pac to its global partner base and now has hundreds of VARs and several key distributors throughout the world. As an example: in Q2 ExaGrid added Transaction Line as a channel partner.  Transaction Line is a leading supplier of business continuity solutions to the Latin American market with customers in Argentina, Brazil, Chile and Columbia, among other Latin American countries. ExaGrid continues to invest in building a robust global channel in its march toward an all-channel sales model. Additionally during the quarter, Computer Reseller News/CRN named ExaGrid to its 2009 list of top Emerging Storage Vendors.

•   High Win Rate Against Competitors: ExaGrid continues to maintain 70-plus percent win rates against its direct competitors – gaining a long list of new customers throughout the world in key industries such as: Healthcare, Banking, Legal, Engineering Services, Manufacturing, Oil and Gas, Education and Federal/State/Local Government. View more than 120 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, Morningstar, Dublin City University and the Conwy & Denbighshire NHS Trust (UK National Health Service) http://www.exagrid.com/why_exagrid/customer_success_stories.asp.

•   Continued Industry Partnerships:  In Q2, ExaGrid continued joint sales and marketing campaigns with backup software and industry leaders, including CA and Vizioncore.

“During Q2 ExaGrid continued to execute well as we increased our sales to mid-market and small enterprise companies throughout the world,” said Bill Andrews, president and CEO of ExaGrid Systems. “ExaGrid has now grown 14 out of the last 15 quarters with eight record quarters in a row. We deliver the highest performance and most scalable product at the best price with industry-leading customer support. ExaGrid’s 70-plus percent win rate against direct competitors is proof that this combination of providing the best product, at the best price with the best support resonates with prospects, partners and customers in a powerful way.”