SYSTEMS

Nexenta has announced that it achieved accelerated growth in the first half of 2010 following a record 2009. In the last six months, Nexenta launched comprehensive partner programs, aggressively expanded its executive team to further its expertise and leadership in ZFS and OpenSolaris and released a breakthrough upgrade to its NexentaStor storage software, which helped power a 351 percent increase in revenues from the year prior. This explosive performance, which positions Nexenta as one the industry's fastest growing enterprise storage companies, illustrates that NexentaStor is the ideal solution to meet the growing demand for affordable, high-performance storage solutions, which replace legacy storage technologies that lock in customers to rigid architectures.

NexentaStor is the most widely deployed independent storage solution built on the revolutionary open source ZFS file system. With NexentaStor, customers experience all the benefits of enterprise storage; high performance and air-tight data integrity, multiple replication methods and in-line data deduplication, without relying on the vendor lock-in and outdated technologies of legacy storage vendors. Nexenta's customers save up to 80 percent on storage costs while benefitting from NexentaStor's superior storage functionality, tight integration across virtualization products, and faster development cycles versus legacy, proprietary storage products.

Partner, Customer, and Financial Growth

Nexenta exceeded all of its customer, sales, and partner goals in the first half of the year, including:

• Sales: Nexenta has experienced approximately 45 percent growth in sales from the first quarter to the second quarter.
• Customers: NexentaStor has now achieved over 1,700 commercial deployments, and is used by over 29,000 registered users. 215 new customers were added in the first half of the year, representing over 240 percent more customers than were added in the same period in 2009.
• Partners: 45 partners were added worldwide in the first six months, reflecting the company's commitment and traction with the channel and initial success of its new partner programs. Nexenta now has over 120 partners and channel sales represent over 85 percent of Nexenta's overall revenue.
• Profits: While increasing the size of its team by over 60 percent, Nexenta maintained cash flow breakeven which allowed the company to complete a substantial debt financing.

Company Milestones

To support and further drive its growth, Nexenta continued to ramp up all areas of the company. Key milestones for 2010 include:

• Launch of NexentaStor 3.0: Nexenta's latest software revolutionizes storage by enabling customers to reduce their use of primary storage through in-line deduplication.