Major Enterprises Worldwide Adopt Egenera BladeFrame System.

Business Editors/High-Tech Writers

Gartner Symposium/ITxpo 2003

ORLANDO, Fla.--(BUSINESS WIRE)--Oct. 21, 2003

Company Expands Globally; Further Extends Technology

Lead in Utility Computing 

Egenera Inc., the leader in next-generation datacenter infrastructure, has announced at the Gartner ITxpo significant customer adoption, global expansion and extensions to its technology leadership. Today, Emory Healthcare and Goldman Sachs became the latest blue-chip enterprises to adopt the BladeFrame(R) system. They join market leaders such as America Online, Credit Suisse First Boston, JPMorgan Chase, Cambridge Health Alliance, MChex, UFJ Group and numerous other marquee customers throughout North America, Europe and Asia. To support its international growth strategy and ensure quality service worldwide, the Company has also announced a global support contract with Unisys Corporation.

"Our year-to-date results have exceeded all expectations as Egenera continues to have a significant impact supporting mission-critical datacenter applications for marquee enterprises. We have been delivering our virtualization and utility computing solutions for more than two years to many of the world's largest investment banks as well as to Internet service providers, government agencies, telecommunications companies and healthcare providers," said Vern Brownell, CEO and founder of Egenera. "We are gratified by the confidence our customers have in the BladeFrame system. They have proven that our PAN architecture cuts datacenter total cost of ownership in half by lowering capital and administrative costs, reducing server count and dramatically simplifying infrastructure."

With the general availability of BladeFrame 3.0 in May, Egenera extended its 18-to-24-month technology lead over the competition. The BladeFrame's diskless Processing Blade(TM) architecture, PAN Manager(TM) software and server virtualization capabilities make it the only platform available today that can truly enable utility computing.

According to the Gartner Inc. research report entitled, "The Future of Server Virtualization," by vice president Thomas Bittman, "Enterprises that do not leverage virtualization technologies will pay up to 40 percent more in acquisition costs by 2008, and roughly 20 percent more in administrative costs, than enterprises that leverage virtualization technologies. (0.6 probability) Strategically, enterprises that leverage virtualization technologies will be able to react to changing requirements more rapidly by using server resources as a pool of resources. Enterprises should pursue long-term relationships with vendors that have solid virtualization plans-either directly or through partnerships."

Additional Highlights

-- Since Egenera first began shipping in December 2001,

BladeFrame systems have been installed in major business and

government centers around the world. Mission-critical

applications supported include global trading, real-time

analytics, securities order routing, clearing and settlement,

Web portals, ambulatory healthcare and databases. Each

quarter, the Company has grown significantly while surpassing

its sales and revenue targets.

-- With the addition of support for Microsoft(R) Windows(R)

Server 2003, Enterprise Edition, customers can simultaneously

run Windows and Linux(R) on a single BladeFrame. Egenera's

unique virtualization capabilities mean that a virtual server

can be running an application on Linux one moment, and a

different application on Windows Server 2003 the next.

-- In September, the Company introduced BladeFrame ES, an

extension of its product line designed to bring the benefits

of utility computing to a wider range of applications and

customer environments. The system delivers up to six Egenera

Processing Blade resources in a self-contained chassis that

mounts easily in an industry-standard (EIA 310-D) 19-inch

rack.

-- In Europe, Egenera has announced a reseller agreement with

Morse, the UK's leading technology integration and IT services

firm. Together, the two companies are bringing the benefits of

utility computing to enterprise-class datacenters throughout

Britain.

-- Egenera has quickly established a presence in the Pacific Rim

to accommodate increasing demand for the BladeFrame in that

region. In January, the Company announced an alliance with

Itochu Techno-Service Corporation (CTC), Japan's premier

distributor of technology solutions, to complement the efforts

of its Japanese office. Additionally, Egenera has opened its

Asia-Pacific headquarters in Hong Kong and has forged

agreements with four leading Pacific Rim resellers:

Intelligent Wave Inc., Sententia Pty Ltd., Sinai Media Co.

Ltd. and Solutions Corporation Ltd.

-- Today's leading technology providers continue to support the

BladeFrame value proposition by joining Egenera's Accelerate

Alliance Program. More than 20 industry leaders--including

Intel, Oracle, Red Hat, Network Appliance and BEA--have joined

forces with the Company.

The Egenera BladeFrame System

The Egenera BladeFrame, with its Processing Area Network (PAN) architecture, assembles purpose-built hardware and virtualization software in a fully integrated computing platform that enables enterprise-class datacenters to lower total cost of ownership and achieve sustainable competitive advantage. The system combines the scalability of server blades and the price/performance of commodity components with mainframe-class functionality, enabling customers to leverage Linux(R) and Microsoft(R) Windows(R) for mission-critical applications. The BladeFrame creates a pool of up to 96 server-class Intel(R) processors on 24 Egenera Processing Blade resources that are deployed and managed entirely through Egenera PAN Manager(TM) software. Processing power can be dynamically increased, decreased and reallocated to support new applications or accommodate variable demand on existing applications without purchasing, installing or managing incremental equipment.

About Egenera Inc.

Egenera's breakthrough virtualization technology optimizes the use of network, compute and storage resources to enable the next-generation utility datacenter. The Company's Egenera BladeFrame system leads the industry in both server blade technology and virtualization software by enabling datacenters to run any application, on any resource, at any time, automatically. Today, BladeFrames are installed at marquee customers worldwide, including many of the world's largest investment banks, major Internet service providers, telecommunications companies, healthcare providers and government agencies. A world-class service and support organization ensures customer satisfaction. Moreover, the Company has assembled a senior management team and engineering staff with an average 20-plus years' experience. Relationships with Microsoft, Intel, BEA Systems, EMC, Itochu Techno-Science Corporation (CTC), Oracle, Red Hat and Veritas, among others, further strengthen the value proposition. Headquartered in Marlboro, Mass., Egenera has offices in Atlanta, Chicago, Hong Kong, Kansas City, London, New York City, San Francisco, Tokyo, Toronto and Washington D.C. For details, visit www.egenera.com, send email to [e-mail] or call 508-858-2600.

Egenera, Egenera stylized logos, BladeFrame, PAN Manager and Processing Blade are trademarks or registered trademarks of Egenera, Inc. in the United States and/or other countries. Intel is a registered trademark of Intel Corporation or its subsidiaries in the United States and other countries. Linux is a registered trademark of Linus Torvalds. Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective holders. The information in this document is subject to change without notice.