VMware to Expand Desktop Virtualization Solution with Acquisition of Thinstall

Thinstall's Best-of-Breed, Agentless Application Virtualization to Join
VMware's Desktop Portfolio; VMware Also Acquires Virtualization Services
Assets from Foedus

PALO ALTO, Calif., Jan. 15 /PRNewswire-FirstCall/ -- VMware, Inc.
(NYSE: VMW), the virtualization software leader, today announced it has
entered into a definitive agreement to acquire Thinstall, a privately-held
application virtualization software company headquartered in San Francisco.
VMware is acquiring Thinstall to expand its desktop virtualization
capabilities which help customers better provision, deploy and update desktop
environments. The terms of the acquisition, which is expected to be completed
in the current fiscal quarter, subject to customary closing conditions, were
not disclosed.
"Delivering software applications to an organization's workforce is the
single largest cost of desktop administration today," said Jeff Jennings, vice
president of desktop products and solutions at VMware. "Thinstall's third
generation solution offers the best technological approach in the market for
application virtualization, providing faster, easier and more secure delivery
of software applications to desktop-based workforces. The addition of
Thinstall to our desktop virtualization portfolio will help us to better
deliver cost-effective and more flexible tools for quickly and securely
provisioning desktops."
Thinstall decouples applications from underlying operating systems,
improving isolation and portability for applications across desktop
environments. Thinstall's unique, agentless approach to application
virtualization enables the rapid, secure and cost effective delivery of
software applications to desktops. Agentless application virtualization,
pioneered by Thinstall, requires no pre-installed software on physical or
virtual PC's and no new deployment infrastructure or management tools.
Thinstall's architecture integrates into existing application management
systems to deliver virtualized applications across a variety of operating
system versions (NT, 2000, XP, Vista) and enables applications to move with
users as needed. Thinstall significantly decreases the time to value of a
software application and reduces the overhead of costly integrations. For
example, a large federal agency turned to Thinstall to completely eliminate
software installation conflicts that previously ran as high as 20%. The same
customer used Thinstall to cut regression testing by 70% as applications no
longer had to be tested in every environment or with every other application.
Founded in 1999, Thinstall is used by more than 600 customers in
government and commercial industries. Thinstall customers have deployed
thousands of virtualized applications to over a million desktops around the
world. For more information about Thinstall please visit
http://www.vmware.com/go/Thinstall.
"We are pleased to be joining VMware, the industry leader in
virtualization," said Henrik Rosendahl, CEO at Thinstall. "As organizations
continue to standardize on virtualization infrastructure, they are looking to
extend the benefits of server virtualization to the desktop. With Thinstall
products, VMware customers will be able to reduce virtual desktop deployment
time, improve agility and increase administrative flexibility."
VMware Acquires Assets from Foedus
VMware also disclosed its acquisition of services-related assets from
Foedus, a Portsmouth, New Hampshire-based provider of virtualization
technologies and services. VMware intends to leverage Foedus's application
and desktop virtualization services expertise to help VMware partners expand
their virtualization services business. Foedus's remaining assets, including
the company's sales and marketing organizations, were acquired earlier this
month by GreenPages Technology, a national, consultative IT solutions provider
and VMware Authorized Consultant (VAC) partner.
About VMware, Inc.
VMware (NYSE: VMW) is the global leader in virtual infrastructure software
for industry-standard systems. Organizations of all sizes use VMware
solutions to simplify their IT, fully leverage their existing computing
investments and respond faster to changing business demands. VMware is based
in Palo Alto, California and majority-owned by EMC Corporation (NYSE: EMC).
For more information, visit http://www.vmware.com.
VMware is a registered trademark of VMware, Inc. in the United States
and/or other jurisdictions. All other marks and names mentioned herein may be
trademarks of their respective companies.
Forward-Looking Statement
This press release contains forward-looking statements regarding expected
performance of VMware following completion of the acquisition of THINSTALL and
FOEDUS and timing of the completion of the THINSTALL acquisition, including
statements related to the anticipated benefits of the acquisitions with
respect to VMware's capabilities and ability to deliver cost-effective
flexible processes and help customers achieve their objectives. Statements
regarding future events are based on the parties' current expectations and are
necessarily subject to associated risks related to, among other things, the
satisfactory of customary closing conditions and the ability of VMware to
successfully integrate THINSTALL's technologies and operations and FOEDUS's
assets and to achieve expected benefits. Actual results may differ materially
from those anticipate in the forward-looking statements. For information
regarding other related risks, please see the "Risk Factors" section of
VMware's filings with the SEC, including its most recent filings on Form S-1
and Form 10-Q
Greg Eden
VMware Public Relations
eden@vmware.com
650-427-1095

Sara Cohen
OutCast Communications for VMware
sara@outcastpr.com
415-392-8282

SOURCE VMware, Inc.

Greg Eden of VMware Public Relations, +1-650-427-1095, eden@vmware.com; or
Sara Cohen of OutCast Communications, +1-415-392-8282, sara@outcastpr.com, for
VMware, Inc.