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

Westborough, - Mass. October 6, 2009 - ExaGrid Systems, Inc., the leader in cost-effective and scalable disk-based backup solutions with data deduplication, today announced another record quarter. Q3 2009 sales for the company showed 19% growth over the prior quarter. International sales also grew significantly and comprised 14% of total Q3 sales for the company. ExaGrid has now grown 15 out of the last 16 quarters with 9 consecutive growth quarters. The continued growth is due to ExaGrid’s product and price leadership, and its move many quarters ago to a worldwide, channel-centric sales model. With more than 1,600 systems installed in more than 700 unique locations at over 450 customers, ExaGrid has the industry’s second-largest installed base of disk-based backup appliances with data deduplication in mid-market and small enterprise companies. ExaGrid also has 125 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 Q3 2009 included the following:

• Growing Global Market Share: Now with more than 450 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. More than 125 real-world ExaGrid customer case studies can be found on the ExaGrid website.
• Worldwide Channel Growth: ExaGrid continued to add partners to its global base of channel partners and has hundreds of VARs and several key distributors throughout the world.ExaGrid continues to invest in building out a global channel in its march toward an all-channel sales model.
• Executive Team Expansion: During the quarter ExaGrid added two key executives to its management team. Bill Hobbib joined as vice president of Worldwide Marketing and Steve Jenkins joined as general manager of EMEA. Hobbib and Jenkins each bring more than 20 years of senior management experience to the ExaGrid team.
• Product Enhancements: In Q3 while at VMworld, ExaGrid announced that its disk-based backup system now supports Vizioncore vRanger Pro version 4.0. The combination of ExaGrid disk backup with deduplication and vRanger Pro 4.0 streamlines data protection for VMware environments and typically consumes 95 percent less disk space for backups.
• Industry Recognition: Info Security Products Guide, the industry’s leading publication on security-related products and technologies, named ExaGrid's customer, Gardner Trucking, winner of the 2009 Best Deployment Scenario Awards in Data Recovery. The ExaGrid/Gardner Trucking success -- “ExaGrid's disk-based backup solution saves Gardner Trucking an estimated $200K 24 hours after installation” -- was selected based on a real-world solution deployment.

"With our strong performance in Q3, ExaGrid has now grown 15 out of the last 16 quarters with 9 record quarters in a row," said Bill Andrews, president and CEO of ExaGrid Systems. "In the months to come we will advance our product leadership and deliver even higher value systems to the marketplace. We know that providing the best product at the best price with the best support continues to resonate with prospects, partners and customers in a compelling way, and we will make this value proposition even stronger in the near future."


About ExaGrid’s Technology:
The ExaGrid system is a turnkey, plug-and-play solution 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, coupled with high-quality SATA storage, reduces the amount of disk space needed by a range of 10:1 to as high as 50:1, or more, resulting in a price that is often less than traditional tape-based backup.