VMware Continues Prep for Server Market Entry

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Palo Alto, Calif., August 17, 2000 - VMware, Inc., leading provider of application and service delivery platforms based on innovative virtual machine technology, today announced that it has named Mark Leslie, chairman and chief executive officer of VERITAS Software Corporation (Nasdaq: VRTS), to its Board of Directors. 

At the same time, VERITAS Software is making a multi-million dollar equity investment in VMware (please see VERITAS Software related announcement dated today) as part of a strategic round led by Dell, which VMware announced last month.  With VERITAS Software's investment, the strategic round now stands at $25 million.

VMware launched its first product in May 1999, software for desktop personal computers that enables a single PC to run multiple, protected sessions on any combination of Linux, Windows NT and Windows 2000 simultaneously. Today, VMware has more than 400,000 registered users, including more than 5,000 corporate customers in more than 100 countries. 

"Investing in and working with VMware underscores our commitment in the data availability market," said Leslie. "VMware software brings a new level of flexibility, efficiency, stability and security to computing.  From the desktop to high-end servers, these qualities are critical, especially to companies delivering applications and services over the Internet or corporate intranets."

Dataquest/Gartner Group estimates the size of the commercial Application Service Provider (ASP) market alone at nearly $10 billion in 2001 and nearly $25 billion in 2003, sustaining a compound annual growth rate of 91 percent during this time period. VMware's server products will address some of the most serious obstacles facing providers of hosted applications and services. These include overcoming the incompatibility of Linux, Windows NT and Windows 2000; rapid deployment; consolidating servers for greater efficiency and cost-effectiveness; maintaining the stability of existing servers when adding new applications and services; and enhancing security on shared servers.

Leslie joins current board members Larry W. Sonsini, managing partner of law firm Wilson Sonsini Goodrich & Rosati; Paul Levy, co-founder and chairman of the board of Rational Software Corporation (Nasdaq: RATL), Diane Greene, co-founder, president and chief executive officer of VMware; and Mendel Rosenblum, PhD, co-founder and chief scientist of VMware. 

"Mark Leslie adds important expertise to VMware's already strong outside directors," said Greene.  "As we gear up for a major push into several large and fast-growing server markets, Mark's experience commercializing and bringing to market infrastructure technologies will help drive VMware's evolution into an enterprise software company." 

About VMware's Board of Directors

Mark Leslie
Chairman and CEO
VERITAS Software Corporation

Mark Leslie has served as chief executive officer of VERITAS Software, the data availability company, since 1990 and as a director of the company since 1988.  From 1989 until 1990, he was the principal and owner of Leslie Consulting, a management-consulting firm, and from 1984 until 1989 he served
as president and chief executive officer of Rugged Digital Systems, Inc., a computer manufacturer. Mr. Leslie is also chairman of the board of Versant Object Technology Corporation, an object-oriented database company.

Mr. Leslie received a BA degree in physics and mathematics from New York University in 1966 and completed Harvard Business School's program in management development in 1980.

Paul Levy
Chairman
Rational Software Corporation

Paul Levy co-founded Rational Software in 1981 and currently serves as chairman of the Board of Directors.  Prior to April 1999, Mr. Levy served as Rational Software's CEO.  Mr. Levy is a 1977 graduate of the United States Air Force Academy and in 1980 earned his MS degree in engineering from Stanford University.

Mr. Levy serves on the Board of Directors of Broadbase Software, Inc. (Nasdaq:
BBSW).

Larry W. Sonsini
Managing Partner
Wilson Sonsini Goodrich & Rosati, P.C.

Larry Sonsini is Chairman of Wilson Sonsini Goodrich & Rosati, the nation's leading law firm serving the technology industry.  He specializes in the fields of corporate, securities, and mergers and acquisitions law.

Mr. Sonsini received an AB from the University of California, Berkeley, in 1963 and an LLB in 1966 from Boalt Hall School of Law, University of California, Berkeley.

Since 1985 to the present, Mr. Sonsini has been teaching Securities
Regulation at Boalt Hall School of Law.  Mr. Sonsini received the 1996 Award
for Achievement of the California Alumni Association at the University of California, Berkeley.  He is also a member of the American Academy of Arbitration and Sciences.  He serves on a number of advisory boards and committees.

Mr. Sonsini also serves on the Boards of Directors of Novell, Inc., Lattice Semiconductor Corporation, Pixar Animation Studios, Brocade Communications, LSI Logic, and Tibco Software.


Diane Greene
Co-Founder, President and CEO
VMware

Diane Greene has more than 20 years of engineering and management experience bringing new technologies to market. Previously, Ms. Greene served as co-founder and CEO at VXtreme Software, a low-bandwidth streaming video company that was acquired by Microsoft in 1997.

Prior to VXtreme, Ms. Greene led engineering teams at Silicon Graphics, Inc., Tandem, and Sybase. Ms. Greene was named to Upside magazine's Elite 100 list of entrepreneurs and executives in 1997.

Ms. Greene holds an MS degree in computer science from the University of California at Berkeley, an MS degree in naval architecture from the Massachusetts Institute of Technology and a BS degree in mechanical engineering from the University of Vermont.

Mendel Rosenblum, PhD
Co-Founder and Chief Scientist
VMware

Dr. Rosenblum is an Associate Professor of Computer Science at Stanford University, where he leads the operating systems research group of the FLASH project. Together with his students, he developed the Hive operating system, the SimOS machine simulator and the Disco virtual machine monitor.

Dr. Rosenblum holds PhD and MS degrees in computer science from the University of California at Berkeley and a BA in mathematics from the University of Virginia.

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, efficiency, stability 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.

# # #

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.

VERITAS is a registered trademark of VERITAS Software Corporation in the US and other countries.

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