Terracotta Named ''Cool Vendor'' by Leading Analyst Firm; Vendors Selected for ''Cool Vendor'' Report Are Innovative, Impactful, and Intriguing.

SAN FRANCISCO -- Terracotta, Inc., developer of groundbreaking solutions for Java scalability, was selected for the list of "Cool Vendors" in the "Cool Vendors in Platform Middleware, 2006" report by Gartner, Inc. Terracotta is one of three vendors listed in the platform middleware report authored by Massimo Pezzini, Yefim V. Natis, and Ray Valdes.

"Terracotta's 'Clustered JVM' eliminates performance tuning for Java apps and lowers costs by introducing a clustering and caching service into the mix without changing application source code -- a breakthrough that improves the scalability and availability of production Java applications by extending the Java runtime," said Ari Zilka, founder and CEO of Terracotta. "We believe Gartner's recognition of our technology advance confirms Terracotta, our technology, and the market demand."

The platform middleware market is dominated by a wide range of products inspired by the Java 2 Platform, Enterprise Edition (J2EE) standard from vendors such as BEA Systems, IBM, JBoss, and Oracle, and by Microsoft with its .NET-related set of technologies. The overwhelming majority of new applications run on .NET and J2EE platforms, and the proportion of business-critical applications is rising. But innovation doesn't stop there. The requirement for high availability and scalability and lowered cost of ownership is creating new opportunities for vendors.

The Gartner announcement comes just two months after Terracotta closed its second round of post-seed funding with a $13.5 million investment led by Goldman Sachs and joined by Presidio STX, LLC (a subsidiary of Sumitomo Corporation of Japan) as well as first-round investors Benchmark Capital and Accel Partners. Several leading financial services firms are using Terracotta to scale-out complex applications. The high-availability and performance gains these firms achieve with Terracotta are required to stay competitive in their industry.

About Gartner's Cool Vendors Selection Process

Gartner's listing does not constitute an exhaustive list of vendors in any given technology area, but rather is designed to highlight interesting, new and innovative vendors, products and services. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness of a particular purpose.

Gartner defines a cool vendor as a company that offers technologies or solutions that are: Innovative, enable users to do things they couldn't do before; Impactful, have, or will have, business impact (not just technology for the sake of technology); and Intriguing, have caught Gartner's interest or curiosity in approximately the past six months.

About Terracotta, Inc.

Terracotta, Inc. delivers plug-in capacity and availability for enterprise Java at runtime with no application code changes. Terracotta gives application developers and operators substantial advantages in development, deployment, and management that translate directly to faster time to market, increased return on investment, and lower total cost of ownership. Terracotta customers include industry leaders in the financial services and telecom sectors. Founded in 2003, Terracotta is a private firm headquartered in San Francisco. More information on Terracotta can be found at www.terracottatech.com.

Terracotta, Inc., Terracotta, and the Terracotta stylized "T" logo are trademarks of Terracotta, Inc. Java and all Java based trademarks and logos are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. Other marks are the property of their respective owners and are used here only for identification purposes.