VMware Extends Lead In Virtual Infrastructure Market

SAN DIEGO, October 27, 2004 — At VMworld 2004, VMware, Inc. today announced it extended its lead in the virtual infrastructure market. Critical factors in VMware's success include bringing industry-leading technological innovation to market. VMware's comprehensive virtual infrastructure solutions for servers, desktops and test and development solve the hard problems of efficiency, flexibility and security and provide an easy on-ramp to next generation computing models. 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. With the introduction of VMware ACE, VMware again demonstrated its relentless innovation and aggressive technology leadership.

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.

VMware virtual infrastructure products continued to be recognized for excellence, highlighting the company's ongoing leadership in the market: VMware VirtualCenter was named the Most Promising Technology of the Year by CNET Networks UK and was named the Best New Product by Windows IT Pro; VMware ESX Server won the IDG Network Enterprise Product of the Year and Microsoft Tech Ed Europe Best of Show awards; and VMware Workstation was named the Best Windows Development Tool and Best Testing/Debugging Software by Windows IT Pro for the second consecutive year.

VMware also announced that VMworld 2004, its first annual user conference, 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.

"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. "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."

About VMware, Inc.

VMware, an EMC company (NYSE: EMC), is the global leader in virtual infrastructure software for industry-standard systems. The world's largest companies use VMware solutions to simplify their IT, fully leverage their existing computing investments and respond faster to changing business demands. VMware is based in Palo Alto, California. For more information, visit www.vmware.com or call 650-475-5000.

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