Fabric7 and Virtual Iron Sign OEM Agreement to Deliver Enterprise-Class Virtualization and Management to Customers

Combined Offering Optimizes Physical and Virtual Infrastructure to Reduce Data Center Cost and Complexity

Mountain View, CA and Lowell, MA – December 19, 2006 – Virtual Iron Software (www.virtualiron.com) and Fabric7 Systems (www.fabric7.com) today announced a new business agreement and partnership that will help joint customers maximize the capabilities of Fabric7's new family of enterprise servers with Virtual Iron’s virtualization and management software solutions. Under the agreement, Fabric7 will bundle Virtual Iron’s virtual infrastructure management software with its high-performance, AMD Opteron™ processor-based servers, to provide customers with maximum flexibility and reliability when deploying and managing enterprise-class applications in a virtual environment. The companies have also agreed to develop joint product offerings for users and to collaborate on marketing and sales.

Both Fabric7 and Virtual Iron focus on providing customers with flexibility, efficiency, and simplicity in managing their IT environments. The new joint solution enables companies to take advantage of these benefits in both their physical and virtual environments. As a result, users will be able to roll out server consolidation projects more easily and quickly realize substantial return on investment. The partnership leverages the companies’ common focus on enterprise and line-of-business (LOB) workloads in the rapidly expanding x86-64 server marketplace. The joint solution also takes advantage of native support for AMD’s hardware-assisted virtualization (AMD-V™) to achieve higher levels of efficiency and utilization.

“Because it delivers concrete cost savings and dramatic manageability improvements, virtualization is a strategic technology for enterprise computing,” said Jonathan Eunice, Principal IT Advisor for Illuminata. “Both Fabric7 and Virtual Iron are innovators in system infrastructure; combining forces to offer an integrated server virtualization solution makes impeccable sense.”

“Virtual Iron is committed to delivering enterprise-class performance and reliability to its customers,” said John C. Thibault, CEO of Virtual Iron Software. “Our joint solution with Fabric7 enables customers to virtualize mission-critical applications and workloads with confidence and dramatically improve data center efficiency and productivity. The cost savings and operational benefits are dramatic and immediate.”

Fabric7’s enterprise servers leverage a unique architecture, called fabric computing, to combine processing and I/O resources into a flexible and highly efficient network fabric that increases flexibility and utilization within both individual servers and across multiple machines in the data center. With Virtual Iron, Fabric7 will be able to further extend the value of its solutions by enabling customers to maximize the utilization of the company’s hardware-partitionable processor and memory complexes with a highly advanced and flexible virtualization and management suite.

"As the cost and complexity of managing an IT infrastructure continues to grow, customers are in need of ever greater flexibility and precision in managing their computing resources," said Dr. Sharad Mehrotra, CEO of Fabric7. "The fabric computing architecture delivers a new standard of price/performance for x86 servers, and Virtual Iron’s enterprise-class virtualization and management solutions will further enable our systems to redefine the economics of enterprise computing to our customers’ benefit.”

“The combined solution offered by Fabric7 and Virtual Iron, powered by AMD Virtualization™ technology - should prove invaluable to users deploying enterprise-class applications.” said Randy Allen, corporate vice president, server & workstation division, AMD (NYSE: AMD). “AMD has made significant strides in advancing performance-per-watt and x86 virtualization leadership with the AMD Opteron processor featuring AMD Virtualization, which greatly enhances the flexibility, scalability and compelling economics of enterprise computing. We look forward to extending these benefits to users through our partnership with both Fabric7 and Virtual Iron.”

About Fabric7 Systems
Fabric7 Systems designs and builds enterprise servers that integrate compute and networking technologies into a dynamic fabric of IT resources. Fabric7 delivers a fundamental breakthrough in server design that provides its customers the flexibility, efficiency, and simplicity required to meet their changing business needs. Fabric7 is headquartered in Mountain View, CA. For more information, visit the company's website at http://www.fabric7.com or call +1 (650) 210–0100.

About Virtual Iron Software, Inc.
Virtual Iron provides enterprise-class software solutions for creating and managing virtual infrastructure. Its software enables companies to dramatically reduce the complexity and cost of managing and operating their enterprise data center. Virtual Iron delivers advanced virtualization capabilities that exploit industry standards, open source economics and built-in hardware-assisted acceleration. Organizations use Virtual Iron’s software for server consolidation, rapid provisioning, business continuity, capacity management and policy-based automation to deliver significant improvements in utilization, manageability and agility. Virtual Iron is privately held and based in Lowell, Massachusetts. For more information, visit http://www.virtualiron.com or email info@virtualiron.com.

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Fabric7, Fabric7 Q160, Fabric7 Q80, Q-par, Q-Visor and the Fabric7 logo are trademarks of Fabric7 Systems, Inc.

AMD, the AMD arrow logo, AMD Opteron, and combinations thereof, and AMD Virtualization are trademarks of Advanced Micro Devices, Inc.

Other names used are for informational purposes only and are trademarks of their respective owners.