[August 18, 2008]

Strong Demand for Continuous Availability Solutions Drives xkoto's Growth in First Half of 2008

WALTHAM, Mass. --(Business Wire)-- xkoto, the database virtualization company, today reported continued growth in the first half of 2008, as more businesses requiring continuous availability and scalability for business-critical applications chose GRIDSCALE over costly traditional database clustering technologies.

In the second quarter alone, company revenues grew more than 400 percent over the same quarter last year. xkoto continued to increase its customer base with a number of new customers including: Comdata Corporation, HSBC, Independence Blue Cross, Norfolk Southern Corporation, and PUMA AG International. These organizations chose GRIDSCALE database virtualization software to eliminate downtime, improve scalability and dramatically lower costs for business-critical databases.

On the partner front, xkoto strengthened and expanded its relationship with IBM by selecting IBM to deliver Level 1 & 2 technical support worldwide for businesses running GRIDSCALE with DB2. xkoto also joined forces with several companies that will resell and provide implementation services for GRIDSCALE in both the United States and in Europe. xkoto's newest partners include: Fourth Millennium Technologies, a Houston-based company with expertise in database design and implementation; Germany-based DB2 resellers IT Gain and LIS.TEC; and Novalia Consulting, a reseller located in Spain. The company also extended its alliance agreement with existing partner, The Fillmore Group. For more information about xkoto partners or to become an xkoto partner, visit http://www.xkoto.com/partners.

"We continue to see increasing customer adoption of GRIDSCALE to solve the most difficult scalability and availability challenges for business-critical databases," said David Patrick, President and CEO, xkoto. "Increasingly businesses are turning to database virtualization to guarantee application availability and dramatically lower IT costs for systems that run 24x7."

Building on its first-half momentum, xkoto announced the debut of its Database Virtualization Weblog at http://www.xkoto.com/blog. The company also has been recognized as one of InformationWeek's Top 10 Startups, and company CEO David Patrick will present at the InformationWeek 500 Conference in September.

GRIDSCALE virtualizes the database, enabling multiple, identical copies to run on a cluster of systems with the same or better reliability and performance than more expensive, proprietary systems. Because GRIDSCALE is an active-active solution, all the servers in a managed pool are accessible, fully utilized, and can be dispersed geographically to mitigate disaster scenarios. Applications get consistent data reliably and quickly, and by sharing the load across multiple servers, the loss of any one server does not have an impact on availability. In addition, systems continue to run to their full capability even when individual servers are taken offline for maintenance.

About xkoto

xkoto, the database virtualization company, is the provider of GRIDSCALE, software that virtualizes the database to ensure maximum scalability and availability for critical applications. GRIDSCALE delivers unparalleled agility enabling businesses to stay ahead of rapidly changing requirements. GRIDSCALE is used by leading companies in financial services, healthcare, insurance, manufacturing, retail and telecommunications. xkoto's partners include IBM, Microsoft, VMware, Citrix, Hewlett-Packard, and Sun Microsystems. For more information, visit: www.xkoto.com or call +1.416.440.7001.

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