SWsoft Announces First Quarter Growth and Momentum in Virtualization and Automation

HERNDON, Va., May 2007 – In the first quarter of 2007, SWsoft, Inc. achieved revenue growth of more than 140 percent over the first quarter of 2006, further accelerating the company's pace of growth. That surpassed the rate of 134 percent for all of 2006.

The company’s virtualization revenue grew by more than 600 percent during Q1 2007 as compared to Q1 2006. The company also continues to enjoy strong quarter-to-quarter sequential growth. Virtualization products now account for a larger portion of SWsoft revenues with virtualization software growth a reflection of accelerating industry demand. SWsoft estimates that more than 50 of the top Fortune 500 companies now use Virtuozzo software. Current customers include arvato mobile, Association of American Medical Colleges, Cox Communications and Murphy Oil Corporation.

The company's virtualization products include Virtuozzo, which provides operating system server virtualization, as well as desktop virtual machine software from Parallels. The company plans to introduce a server version of its Parallels product in 2007. SWsoft also develops and markets a complete set of automation products with rapidly-growing sales on the Microsoft Windows platform.

"We are pleased that the momentum of 2006 has carried over into the first part of the new year, and in fact, accelerated our revenues, which are in the tens of millions," said Serguei Beloussov, CEO of SWsoft. "We view these results as recognition of our innovative solutions as well as acceptance of SWsoft as a growing leader in each of our three core markets. SWsoft is committed to extending its product line to help consumers, hosters and corporate customers get the most out of virtualization and automation."

New partnerships help increase momentum, adoption of OS virtualization
Several leading technology companies joined with SWsoft to help drive adoption of operating system virtualization in the data center.

- An agreement with Microsoft helps provide support for customers running Virtuozzo for Windows Server software.

- An agreement with Novell to ship Virtuozzo in a bundle with Novell's SUSE Linux Enterprise software.

- SWsoft joined the HP ProLiant Partner Program and the two companies validated software running on HP ProLiant servers.

Parallels desktop virtualization a customer and industry favorite

Parallels continues to win customers and industry raves as the best desktop virtualization software. Parallels Desktop for Mac is one of the fastest selling titles for Mac and has received numerous awards , including:

- PC World Innovation of the Year

- MacWorld Expo 2007 "Best in Show"

Automation software lineup expands

New product introductions have helped extend SWsoft's role as a leader in data center automation. PEM, the company's data center automation solution for service providers added support for Blackberry and Good Technologies that gives service providers the ability to offer hosted e-mail solutions to their customers. Also, the company partnered with MIVA Small Business Solutions, Inc. to deliver easy e-commerce capabilities as part of the SWsoft Plesk control panel solution for service providers.

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. For more on Parallels, an SWsoft company, visit www.parallels.com.

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