VMware Extends Market Leadership

At VMworld 2004, VMware, Inc. (www.vmware.com) announced it extended its lead in the virtual infrastructure market. Critical factors in VMware's success include bringing industry-leading technological innovation to market.

"What sets VMware apart is our commitment to the continual development of useful and innovative technology and to the needs of our core customer base," said Diane Greene, President of VMware.

VMworld 2004 is being held October 27-29 at the Manchester Grand Hyatt in San Diego, California. Dell, HP and IBM are all platinum sponsors of the conference.

VMware remains strongly committed to providing its more than 2.5 million users and more than 5,500 enterprise server customers with products that help them best utilize their IT resources and respond quickly to business demands.

2004 has been a momentous year for VMware and the third quarter of 2004 continued this upward trajectory of growth. In the third quarter, VMware delivered record quarterly revenues of $61 million, an increase of more than 200% over the third quarter of 2003.

Also in the third quarter, VMware introduced a groundbreaking new enterprise desktop management and security product, VMware ACE, which enables IT managers to provision secure, standardized PC environments throughout the extended enterprise.

Building on its already extensive user base, VMware also demonstrated strong customer momentum during the quarter with the news that more than 400 customers have used its enterprise-class migration tool, VMware Physical to Virtual (P2V) Assistant, to perform thousands of successful migrations of physical servers to virtual machines.

"Because of this we have achieved tremendous growth and success quarter after quarter, and look forward to a future of virtual machines on every x86 CPU across the enterprise."

VMware is based in Palo Alto, California. The company is a provider in virtual infrastructure software for industry-standard systems.