PRESS RELEASE

Verari Systems Positioned in the Visionary Quadrants in Midrange and Entry-Level Servers Magic Quadrants

By Mike LaPan (858) 874-3800

SAN DIEGO, Calif. -- October 27, 2004 -- Verari Systems™, the premier developer of powerful, platform independent blade server systems, announced today that Gartner positioned the company in the Magic Quadrant for Midrange Servers, 2004 and the Magic Quadrant for Entry-Level Servers, 2004 (1). Verari Systems is listed in the visionary quadrant in both reports.

The Magic Quadrant reports examine server companies on their completeness of vision and ability to execute. In both reports, the criteria for the ability to execute are: ability to change, product portfolio, sales and marketing, services, channels, and business fundamentals. The criteria for completeness of vision are strategy, target markets, technology differentiation, industry awareness, leadership, and organizational vibrancy. According to Gartner, vendors listed in the visionary quadrant have a clear vision of market direction and are focused on preparing for that, but they can still improve in terms of optimizing service delivery.

The Magic Quadrant for Entry-Level Servers assesses tower, rack, rack-optimized, and blade servers that have fewer than four processors and cost less than $10,000. The Magic Quadrant for Midrange Servers assesses tower, rack, rack-optimized, and blade servers that have 4 to 16 processors and cost more than $10,000.

On the strength of its product vision, Verari Systems has doubled its sales nearly every year since its inception in 1996 and has quickly grown to 265 employees worldwide. More than 4,000 customers, including Boeing, Industrial Light and Magic, Lockheed Martin, Microsoft, Motorola, NASA, NVIDIA, Northrop Grumman, Novartis, Pixar, and Shell, have chosen Verari Systems' line of high-density blade server clusters, rack-optimized servers, and high-performance technical workstations.

"We are delighted to be listed in the visionary quadrant by Gartner," said David Driggers, CEO of Verari Systems. "We believe this is a milestone in our company's evolution and recognition of Verari Systems' position as a key provider of blade computing systems to enterprise data centers."

From its inception, Verari Systems has pursued a strategy of providing the industry's fastest standards-based blade computing systems with the lowest possible total cost of ownership in the densest form factor possible. Verari Systems' Vertical Cooling System (VCS) allows for these high-density product offerings. Traditional cluster installations ineffectively cool from front to back where heat exhausts from the rear of the cabinet. This can cause dramatic hot spots in data centers. The Verari Systems VCS is designed for large scale data centers where floor cooling is efficiently utilized and exhausted into ceiling ducts to control temperatures and avoid overheating.

For more information, visit www.gartner.com, and reference Research ID Number: G00124349 (Magic Quadrant for Midrange Servers, 2004) and G00124359 (Magic Quadrant for Entry-Level Servers, 2004)

About Verari Systems
Verari Systems, Inc. is the premier developer of powerful, flexible and scalable platform-independent blade-based compute and storage solutions that are defining a new era in enterprise and high performance utility computing for the data center. Organizations such as Akamai, CGGVeritas, Lockheed Martin, Microsoft, Northrop Grumman, Qualcomm and Sony Imageworks, as well as top universities and research institutions worldwide, are among the customers who have chosen Verari Systems' line of high density blade servers, modular storage blades, rack-optimized servers and award-winning software solutions. To learn more about Verari Systems and its unique solutions, please visit us on the web at http://www.verari.com or call (888) 942-3800.

(1) Magic Quadrant for Midrange Servers, 2004 by J. Enck, A. Butler, and M. Chuba, October 15, 2004 and Magic Quadrant for Entry-Level Servers, 2004 by J. Enck, A. Butler, and M. Chuba, October 15, 2004. The Magic Quadrants are copyrighted October 15, 2004 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product, or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Verari Systems and the Verari Systems logo are trademarks or registered trademarks of Verari Systems, Inc.