VMware Surpasses 1,000,000 Registered User Mark For Its Virtualization Software

Sees Record Demand as Web Sales Increase 100% in Past Year

Palo Alto, Calif., March 6, 2002 -- VMware, Inc., the leading provider of virtual computing software for industry-standard computers, today announced that it has surpassed the 1,000,000 registered user mark, fueled by a growth rate that exceeds an average of more than 2,000 new users per day. Additionally, VMware's Web sales have grown 100 percent over Web sales a year ago, mirroring the company's overall revenue growth from all channels.

"We have been very fortunate to see great demand for our virtualization software," said Diane Greene, CEO and president of VMware. "Because our products provide immediate ROI for IT departments and developer shops, we've found they've been able to make their way through the approval processes rather quickly."

VMware's Web store has been a particularly successful and profitable channel for VMware. In fact, the Web store was the sole channel VMware used to sell VMware Workstation -- its first desktop product for technical professionals working in development, quality assurance, technical support, corporate training and sales and marketing -- when it was released in May 1999. Because its Web Store was a success, VMware opted to sell VMware GSX Server -- its first server product targeted to enterprise IT groups and service providers -- online when the product became available in January 2001. Since online sales for both products have exceeded expectations and continue to grow, VMware has expanded its sales channels to include direct sales, telesales and an international reseller network.

About VMware Workstation

VMware Workstation lets technical professionals run all the applications they need, regardless of operating system, on a single PC. Users spend less time configuring hardware, installing software, and rebooting or reconfiguring systems -- and more time developing, testing, and deploying applications and delivering support. The electronic version of VMware Workstation is available for $299 and the boxed version for $329 on VMware's Web store at http://www.vmware.com/vmwarestore/.

About VMware GSX Server

VMware GSX Server minimizes the total cost of ownership of server infrastructures by maximizing server manageability, flexibility and efficiency. VMware GSX Server partitions and isolates server resources, allowing them to be remotely managed, automated and standardized. The electronic version of VMware GSX Server is available for $3499 and the boxed version for $3550 on VMware's Web store at http://www.vmware.com/vmwarestore/.

About VMware, Inc.

VMware, Inc. is the leading provider of virtual computing software for industry-standard computers. Through its patent-pending technology, VMware brings virtual computing to distributed systems -- from the desktop to the data center. Enterprise customers use VMware software for server consolidation, workload management and application development, testing and deployment. With more than one million registered users, VMware products include ESX Server, GSX Server and Workstation. VMware was founded in 1998 and is based in Palo Alto, Calif. For more information, visit www.vmware.com or call 650-475-5000.

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Contact:
Amber Rowland
VMware, Inc.
650-475-5338