SWsoft Announces First Half Growth, New Milestones Reached

HERNDON, Va.,– Driven by growing acceptance of its Parallels virtual machine software and Virtuozzo operating system (OS) virtualization software, SWsoft today announced that its revenues grew by 127 percent for the first half of 2007 versus the first half of 2006.

SWsoft, currently the world’s second-largest overall virtualization software company, leading desktop virtualization vendor and the only company to offer both virtual machine and OS virtualization technologies, reported revenues from its virtualization products surged 312 percent from the first half of last year.

The company’s revenues related to consumers, SMBs and enterprises (excluding hosting providers) grew by a remarkable 487 percent over the same period and now represent 56 percent of the company’s total revenues (based on the past three months).

The sales growth reflects accelerating customer demand for SWsoft virtualization and automation technology. The company’s Parallels, Virtuozzo and other products now power more than 1.3 million virtual desktops and servers:

More than 130,000 physical servers are currently powered by SWsoft products.
More than 600,000 physical desktops and notebooks use Parallels software.
More than 700,000 virtual environments (or containers) are powered by Virtuozzo.
Nearly every Fortune 500 company uses Parallels virtual machine software.

"These results are clear indications of the useful innovation and unique value that SWsoft products offer hundreds of thousands of customers every day," said Serguei Beloussov, CEO of SWsoft. "Our company is differentiated as the only one delivering both OS virtualization and virtual machine software, along with a suite of automation software. Rather than creating new software platforms, SWsoft is focused on enhancing existing operating systems and applications for the benefit of customers and other software vendors."

Product Momentum
SWsoft continued its aggressive product innovation during the last three months by shipping a new version of the Parallels Desktop software. The 3.0 version features SmartSelect, a Parallels-exclusive feature that allows users to open any file from Windows or OS X with any program from either OS. This function builds on Coherence, which lets Windows applications run like native Mac applications on OS X.

Also, SWsoft launched the Virtuozzo Starter Pack for Windows and Linux to enable new users to try out OS virtualization technology for a pilot deployment or small server consolidation project. The Virtuozzo Starter Pack is a turn-key offering of software and support and is priced at $1,198.

The company unveiled an alpha build of Parallels Server, which runs bare-metal as well as on top of Windows, Linux or OS X server. The product, scheduled for introduction later in 2007, will give businesses the flexibility to run multiple server operating systems on a single physical server.

With the introduction of the Application Packaging Standard, SWsoft made headway towards creating a software-as-a-service (SaaS) integration platform.

SWsoft PEM 2.6.3, SWsoft Plesk 8.2 and SWsoft Sitebuilder 4.0 upgrades were introduced to help extend the company's role as a leader in data center automation.

Recognition and Expanded Partnerships
SWsoft was honored for excellence by several top organizations, including the Itanium Solutions Alliance and CRN Magazine, which named the company one of the "25 ISVs You Must Know." SWsoft products also won numerous prestigious awards, including being named #6 on PC World's "100 Best Products of 2007" list and one of CRN's "10 Coolest Products of the Year," and winner of MacWorld UK's "Best OS X Software of 2007" award.

New or expanded SWsoft partnerships were announced with: 1&1 Internet, Arc Technology, CCMedia, Concergent, Consistent Computer Bargains, FORPSI, FreshBooks, GAUZY, IBM, IGNUM, Internet Fr, Kaspersky, Microsoft, Objectronix, Prox System Design, Ready Informatica, Roaring Penguin, ShopSite, Smart Online, Softbank IDC, Shinjiru.com, and Tech Data.

About SWsoft
SWsoft is a global leader in virtualization and automation software that helps consumers, businesses, and service providers optimize their use of technology. The company's software powers more than 130,000 servers and 600,000 desktops worldwide. The SWsoft product line includes Virtuozzo - the leading operating system virtualization solution, Parallels - the leading desktop virtualization product, and Plesk - the leading server control panel. Founded in 1999, the company has offices throughout North America, Europe, and Asia. For more information, visit www.swsoft.com.

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