By Stephanie Finkelstein

Palo Alto, Calif., May 24, 2000 - VMware, Inc., the leading provider of
application and service delivery platforms based on innovative virtual
machine technology, today announced the closing of a $20 million
strategic financing round led by Dell.

  VMware launched its first product in May 1999 - software for desktop
personal computers that enables a single PC to simultaneously run multiple,
protected sessions with any combination of Linux, Windows NT, Windows 2000 and other Intel based operating systems.  Today, VMware has more than 385,000 registered users, and is licensed in 5,000 corporations, in more
than 100 countries.  The company will use the funds to accelerate the
development and deployment of server-based products for providers of hosted applications and services over the Internet or corporate intranets.

"We see VMware as a significant emerging technology in the computing
industry," said Jim Totton, Dell's vice president of worldwide software
development.  "Dell continues to invest in technologies that show strategic
potential in the marketplace."

"This financing positions VMware to move into the next phase of growth and
evolution of our business strategy: deploying VMware virtual machine
technology as a platform for Internet commerce and infrastructure," said
Diane Greene, a co-founder and chief executive officer of VMware.  "We
expect the investment to have a huge impact on our current desktop business
as well as speeding time to market for our server products."

VMware's server products will address some of the most critical issues
facing providers of hosted applications and services.  These include how to
guarantee security on shared servers, maintain the stability of existing
servers when adding new applications and services and overcome the
incompatibility of Linux, Windows NT and Windows 2000.  "Today's solution - a server for each application, service or customer - is not only expensive, but creates enormous systems administration and management problems," said Greene.

In addition to Dell, the investment round also includes funding from Azure
Capital Partners, Chase H&Q Capital Partners and Goldman Sachs Group, Inc.

About VMware
VMware is a leading provider of application and service delivery platforms
for desktop personal computers and servers.  Based on innovative virtual
machine technology developed at Stanford University, VMware products allow single computers to run multiple, protected sessions on any combination of Linux, Windows NT and Windows 2000 simultaneously, offering new levels of flexibility, safety and security.  VMware's customers include developers, information technology professionals and providers of hosted applications and services over the Internet or corporate intranets.  VMware's software was selected as an InfoWorld analyst pick for 1999 Product of the Year. VMware is a privately held company based in Palo Alto, California.  For more information, visit the Web site at http://www.vmware.com.

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VMware is a trademark of VMware, Inc. Linux is a registered trademark of
Linus Torvalds.  Microsoft and Windows are registered trademarks of Microsoft Corporation.  All other marks and names mentioned herein are the property of their respective holders.

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