Manchester, U.K. and Beaveron, ORE., U.S.A. — June 16, 2008 — VirtenSys™, Ltd. has achieved an industry breakthrough by developing the first PCI Express based I/O technology that virtualizes and shares off-the-shelf I/O adapters amongst multiple physical servers without need for adapter, device driver or server modifications. This unique, proprietary technology is a critical capability that will accelerate the adoption of the Virtensys PCI Express I/O virtualization products and will establish the company as the industry leader. VirtenSys' cost effective products dramatically improve I/O utilization to greater than 80 percent; enhance throughput, and reduce I/O cost and power consumption by as much as 50 percent. The products also simplify data center management by dynamically allocating, sharing, and migrating I/O resources among servers without physical re-configuration, reducing Operational Expenses (OpEx).

As a part of VirtenSys' go-to-market strategy, the company is demonstrating this technology to leading server and storage Original Equipment Manufacturers (OEMs) and System Integrators (SIs). Later this year, VirtenSys will launch products that virtualize and share off-the-shelf Ethernet, Fibre Channel and SAS/SATA PCI Express based I/O adapters. The products will be available in both rack-mount and blade server form-factors

"We are pleased by the response from our OEM customers to the technology," said Ahmet Houssein, president and CEO of VirtenSys. "They were unanimous in their positive comments, as they have been looking for cost-effective solutions that deliver all the benefits of I/O virtualization without performance degradation or disruption to existing server and storage systems."

VirtenSys I/O virtualization technology uses the native PCI-Express interface available in servers and storage systems and supports the just-announced PCI-SIG I/O Virtualization specifications (http://www.pcisig.com/specifications/iov/) including Address Translation Services (ATS), Single- Root IOV (SR-IOV), and Multi-Root IOV (MR-IOV), making VirtenSys products immediately deployable across a broad range of platforms. The VirtenSys technology also preserves all the investments made by corporations in I/O adaptors and device driver certifications, management processes, and know-how. This compares with existing I/O virtualization solutions that require investment in new networks based on InfiniBand or the next-generation Data Center Ethernet standards, the use of proprietary I/O adaptors, or the introduction of new device drivers. These changes are disruptive, costly, and complex to deploy.

VirtenSys collaborated with 10 GbE industry-leader Neterion to provide virtualized 10GbE connectivity. VirtenSys developed, tested and validated its Virtualized I/O technology using the Neterion 10GbE Xframe E adapter. The two companies are working to speed the adoption of I/O virtualization.

"We are pleased to collaborate with VirtenSys as it prepares to introduce its virtualized I/O solutions," said Greg Scherer, VP of Product Planning. "VirtenSys has developed unique technology that can use both our Xframe E adapters, and our next-generation X3100 series of 10GbE adapters. It can virtualize them among multiple physical servers using Neterion’s standard device drivers and without introducing any changes to the servers. This is very attractive to data centers."

"Once we met with Neterion and reviewed each company's technology and plans, it was obvious that working together would be beneficial to both companies and to the market," added Houssein. "We appreciate Neterion's commitment to delivering industry leading 10GbE solutions that enable the rapid deployment of I/O Virtualization in next-generation data centers."

About VirtenSys, Ltd.
VirtenSys delivers innovative, standards-based I/O Virtualization systems and is driving the next wave of virtualization-based technologies in the data center. VirtenSys’ technology and products provide fully virtualized I/O functionality by de-coupling existing off-the-shelf I/O adapters from servers and then consolidating and sharing them among multiple physical servers and storage systems. The systems are cost-effective and dramatically improve I/O utilization, enhance data throughput, and reduce I/O cost and power consumption. VirtenSys solutions simplify system management, improve reliability and provide all the benefits of I/O Virtualization without performance degradation or disruption to existing data center infrastructures and processes. VirtenSys was incorporated in December 2005 and is led by a team of system and semiconductor veterans. The company is privately held with funding from Scottish Equity Partners (SEP), Celtic House Venture Partners, and GIMV. Its corporate headquarters are in Manchester, U.K. and its U.S. headquarters are in Beaverton, Ore., U.S.A. For more information about the company, visit www.virtensys.com.

About Neterion
Neterion is the leader in 10 Gigabit Ethernet adapters that provide high speed solutions for customers' server and storage systems. Xframe® and X3100 Series are the industry's highest performing line of 10 GbE adapters, allowing IT managers to virtualize many more applications per physical server - including the most I/O-intensive ones -- drastically decreasing costs when deploying virtualized servers. The company was founded in 2001 and is headquartered in Cupertino, California with an additional office in Ottawa, Canada. More information on Neterion, Inc., can be found at http://www.neterion.com/.

Neterion and the Neterion logo are registered trademarks of Neterion, Inc. All other names are for informational purposes and may be trademarks of their respective owners.