SWsoft Accelerates Market Success and Industry Recognition Throughout 2006

HERNDON, Va. – SWsoft today reported on 2006 results — highlighted by overall growth of more than 130 percent and enterprise sales of the company's Virtuozzo operating system virtualization software, which doubled each sequential quarter.

"By every measure, 2006 was an extraordinary year for SWsoft," said Serguei Beloussov, CEO, SWsoft. "Our top line revenue more than doubled, and we received industry recognition that acknowledges what our customers already know. We intend to accelerate our business in the year ahead by delivering on our aggressive R&D roadmap and further expanding our partner ecosystem."

Industry Recognition Confirms Customer Results
2006 was a year that customers and industry observers both recognized the need for and the value of SWsoft's approach to virtualization, automation and management. An IDC industry analyst report published last September cited Virtuozzo as growing fastest among all vendors in the hot overall market for virtualization technology. The virtualization market is expected to grow to $15 billion worldwide by 2009, according to IDC.

Virtuozzo was cited in a Gartner industry analyst report discussing new technology for data centers in November, which stated: "By 2010, shared operating system (OS) virtualization will become mainstream." SWsoft Virtuozzo is one example of operating system (OS)-level server virtualization technology cited in the report, which can be accessed from the SWsoft website.

A number of awards and recognition were received including:

· Technology of the Year Award for Best Server Virtualization (OS Virtualization) by InfoWorld

· CRN Magazine's new Emerging Vendors Directory for 2006

· Top 100 IT Vendor of 2006 by IT Week magazine in its June 5 issue

· "Best Virtualization Solution" Product Excellence Award at LinuxWorld in April

· "Analyst’s Choice" rating by eWEEK Labs in a cover story in its April 3, 2006 issue

· "Top 10" in the 2006 edition of the InfoWorld 100 recognition for arvato mobile GmbH, an SWsoft customer for its use of Virtuozzo

Product Innovation Drives Customer Success
Last year, SWsoft introduced a new Virtuozzo product delivering the industry’s first live server migration without costly shared storage. The company also enhanced its Virtuozzo tools to provide improved CPU management, pre-determined virtual server configurations, and streamlined resource management to create and manage virtual servers.

SWsoft introduced major updates to its other products, including the Plesk control panel, SiteBuilder, HSPcomplete and PEM datacenter automation solutions. These are all part of the OPEN FUSION technology platform initiative, by SWsoft, to advance integration with third-party applications.

A Growing Corporation: Building a Brand, Welcoming Partners and Developers
SWsoft announced a new corporate and product brand identity to more closely align all of the company's product offerings under one master SWsoft brand identity for both of the company's main customer segments - enterprises and service providers. The branding initiative includes a new tagline, "Virtualization and Automation for the Real World" to reflect the marketplace requirement to optimize information technology (IT) infrastructure using virtualization technology as a means to enable automation. The new branding was incorporated into a re-launched, easily navigated and unified website, www.swsoft.com in a new, clean design.

In 2006, the SWsoft Enterprise Partner Network program was introduced to qualify and reward channel partners that sell SWsoft products. Members of the SWsoft Partner Network are eligible for product discounts, sales leads, market development funds, discounts on training and access to the SWsoft partner portal resources.

The company also initiated the SWsoft Developer Network (SWDN) to provide its fast-growing ecosystem of developers and partners with resources, such as a central repository for documentation, community forums and downloads. Within 90 days, the SWsoft Developer Network (SWDN) attracted more than 1,000 subscribers.

About SWsoft
SWsoft is a global leader in server virtualization and automation software. More than 10,000 customers rely on the proven performance and management capabilities of SWsoft products to optimize their IT infrastructures. Founded in 1999, the company has offices located throughout North America, Europe and Asia. For more information, call 703-815-5670 or visit www.swsoft.com.

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