VMware Installed Base for Enterprise Server Products Exceeds 1,500

Market Leader Captures More Than 80% of Fortune 100

PALO ALTO, Calif., February 3, 2003-- VMware, Inc., the global leader in virtual machine software for industry-standard systems, today announced that more than 1,500 companies spanning all industries are using VMware's enterprise server products.

With more than 80% of the Fortune 100, VMware continues to build strong momentum as more and more companies choose VMware's enterprise server products to help them maximize their technology investments. Enterprise server customers include: Chevron, Circuit City, Cisco, FedEx, Guardian Life of America, Lockheed Martin, Merck, Merrill Lynch, Pfizer, Praxair, Prudential Financial, Saks, T. Rowe Price, Welch Foods and Wendy's. In addition, VMware has strategic partnerships with the leading Intel hardware vendors, including Dell, Fujitsu Siemens Computers, HP, IBM, NEC, Stratus and Unisys, because of the value VMware enterprise server products bring to their server lines.

"With VMware, we gained efficiencies on many levels, from optimizing the utilization of hardware resources and consolidating server platforms, to establishing more effective platforms for testing and business continuity/disaster recovery," said Warren Jones, vice president, IT Operations, Guardian Life of America. "Ultimately, the implementation minimized our infrastructure needs as compared to the traditional 'server sprawl'."

"VMware virtual machine software for Windows enables us to solve a variety of challenging IT issues in a quick, cost-effective manner," said John McKinley, chief technology officer, Merrill Lynch. "By embracing virtualization technology and standardizing on VMware for managing our software development environments, Merrill Lynch has seen a 40 - 50% cost savings."

"VMware server software is saving us time and money because it allows us to consolidate servers, rapidly provision new machines and launch new applications in minutes instead of days," said Carmine Iannace, manager, IT Architecture, Welch Foods.

Within five years of its founding, VMware has attained global leadership in the virtual machine software market. Starting with VMware Workstation in 1999 to bring mainframe class virtual machines to the desktop, and continuing with two enterprise server products - ESX Server and GSX Server - for industry-standard servers in 2001, VMware has dedicated itself to cutting edge technology with real business value.

VMware's virtual machine products are used for server consolidation, software lifecycle management, high availability, disaster recovery, operating system migration and application compatibility. VMware software is implemented throughout the enterprise to minimize total cost of ownership of computing infrastructure by maximizing its manageability, flexibility and efficiency. By running applications in virtual machines, VMware helps businesses save money while gaining greater flexibility and control over their computing resources.

About VMware, Inc.

VMware, Inc. is the global leader in virtual machine software for industry-standard systems. With more than 5,000 customers worldwide and 80% of the Fortune 100, VMware provides companies with a proven set of enterprise products and solutions to consolidate their server infrastructure, improve software lifecycle management and provide application compatibility in mixed operating system environments. Based on the company's patented technology, VMware's products enable companies to flexibly scale and control their infrastructure to quickly respond to business demands, improve return on investment and dramatically reduce total cost of ownership. VMware is based in Palo Alto, California. For more information, visit www.vmware.com or call 650-475-5000.

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(C) 2003 VMware, Inc. all rights reserved. VMware, GSX Server and ESX Server are trademarks of VMware, Inc. All other trademarks and names mentioned herein may be trademarks of their respective companies.