DataSynapse Reinforces Global Leadership Position as Fastest-Growing Provider of Grid Computing Solutions.

NEW YORK -- Company Extends Market-Leader Position with Marquee Customer Wins, European Traction and One-of-a-Kind Value Assessment Tool

DataSynapse, Inc. continues its reign as the fastest-growing provider of grid computing software, announcing its most significant quarter to date marked by a 300 percent increase in revenue from the first half of 2003. DataSynapse's year-to-date success has been driven by major customer wins at home and abroad; entry into new markets including energy, industrial and insurance; enhancements to its award-winning software, GridServer(R); and the launch of its patent-pending, rapid application assessment methodology, GRIDesign(SM).

DataSynapse's strength in the marketplace has been recognized by leading publications and Fortune 500 trailblazers. The company was named one of the top 10 technology companies to watch in 2004 by Bank Technology News and was honored with a 2004 IBM PartnerWorld Beacon Award in the e-business on demand Innovative Solution category for its ability to address the growing business need for real-time processing solutions that significantly reduce costs. DataSynapse was also awarded the KPMG and AlwaysOn (AO) 100 Top Private Companies award for 2004 for innovation and demonstrated leadership.

"DataSynapse is committed to helping its clients realize the inherent business benefits of a flexible IT infrastructure," said Peter Y. Lee, co-founder and CEO of DataSynapse. "Our proven track record for success among some of the world's largest and most demanding financial institutions has fueled corporate growth in 2004 and contributed to strategic client wins in new markets including energy and the industrial sector."

Addressing the market's demand for a solution that helps speed application performance and scale, while optimizing existing IT resources, DataSynapse introduced GRIDesign in May 2004. The first structured analysis of its kind, GRIDesign provides organizations with a roadmap to grid enablement by identifying and prioritizing which applications should be virtualized for optimal tactical and strategic benefit. Response for GRIDesign and its strategic reference architecture and value impact assessment summary has been strong, contributing to seven new client engagements and increased support from existing clients including Abbey National and Nationwide Insurance.

DataSynapse has tripled growth in the U.S. each year since inception, building on its heritage in the financial services sector. The company added 11 clients to its roster in the first half of 2004, along with expanded projects within its marquee install base. New wins in the industrial sector indicate an upward trend by manufacturers looking to optimize their IT infrastructures and speed application performance, further supporting the prediction from independent research firm, IDC that the manufacturing sector will spend $2.6 billion on grid computing by 2006.

Adding six new European accounts in the first half of 2004, DataSynapse is at the forefront of the worldwide adoption of grid technology. Extending its command of the financial services industry overseas, DataSynapse now serves four of the top five European banks; three of the top four French trading companies; and two of the top three French, German and Canadian financial services companies.

About DataSynapse

DataSynapse, Inc. provides enterprise grid solutions that help companies realize the performance advantages of service-oriented computing (SOC), linking business-critical applications to real-time infrastructure operations as needed. The company's patented GridServer(R) software dynamically distributes application workload for legacy and next-generation applications over a virtual pool of shared resources, enabling organizations to create a flexible computing infrastructure that delivers substantially higher service levels for radically lower cost. DataSynapse works with the world's largest financial institutions including Bank of America, Credit Suisse First Boston, Wachovia and UBS, as well as market leaders in the government, energy and industrial manufacturing sectors. The company is headquartered in New York with offices in London, Paris, Chicago, Houston, Philadelphia, Washington, D.C., and San Jose, Calif. and can be found on the World Wide Web at www.datasynapse.com.