VMware Announces Strategic Licensing and Co-development Agreement with Teradici for True Remote PC User Experience Further Bolstering its vClient Initiative

Teradici’s PC-over-IP Technology to Enable VMware View to Deliver True PC Experience with High Resolution Graphics and Rich Multimedia, including Streaming Movies and High-Definition Audio

LAS VEGAS, Nevada, September 16, 2008 — Today at VMworld 2008, VMware, Inc. (NYSE: VMW), the global leader in virtualization solutions from the desktop to the datacenter, announced that it has signed an agreement with Teradici Corporation to license the software implementation of its breakthrough PC-over-IP display protocol technology, and to provide integration and interoperability with PC-over-IP hardware-based implementations as another step in its vClient Initiative.  The protocol will be incorporated into a future release of the newly announced VMware View set of products that extend VMware Virtual Desktop Infrastructure (VDI) to include both server hosted virtual desktops and client virtual desktops that can run on any laptop or desktop computer. VMware View will provide a personalized view of users’ desktops from any device, anywhere, while providing centralized management of desktops in the datacenter.

The agreement will enable VMware to provide customers who plan to deploy virtualized desktops using VMware View the ability to deliver an uncompromised remote desktop experience over existing standard local area networks as well as high-latency wide area networks, and provide both integrated software and hardware implementations of Teradici’s PC-over-IP solution.

For IT organizations serving traders, banks, manufacturers and designers, healthcare professionals and government agencies who have looked to virtual desktop infrastructure solutions to secure their data and reduce their desktop management headaches, this partnership promises to enable broader user adoption due to the full graphics and multimedia capabilities that Teradici’s PC-over-IP technology enables with VMware View for the remote desktop.  VMware View integrated with Teradici’s technology will be able to deliver a true PC experience to end-users with rich multimedia, including streaming movies, high-resolution graphics, high-definition audio, and support for multiple monitors. 

Teradici’s extensive list of solution partners, including OEMs such as Dell and IBM, have already implemented solutions using Teradici’s hardware-based PC-over-IP technology.  VMware plans to offer a solution with VMware View that integrates PC-over-IP in software, while also being interoperable with hardware-based implementations, for optimal flexibility for varying end-user requirements. Moving forward, VMware and Teradici, in collaboration with their solution partners, will develop PC-over-IP into the next generation display protocol, including further optimization for high-latency wide area networks. 

With VMware View, enterprises will be able to replace traditional PCs with virtual machines that are centralized in the datacenter and provide end users the flexibility to access their personal “myview” anywhere using multiple devices.  This helps enterprises achieve streamlined desktop and application management while reducing desktop TCO, improving security of data and enhancing user experience, flexibility, and productivity.

For challenging use cases in today’s global enterprises, VMware View with PC-over-IP technology brings additional flexibility to the desktop while increasing security and control. Desktop users in financial services and media and entertainment companies who need multiple monitors and rich multimedia will now be able to realize a universal client experience with VMware View.

“Our customers want to leverage all the benefits of VMware View while being able to provide their end-users with an unmatched desktop experience across any network using any device,” said Jeff Jennings, vice president of desktop products and solutions, VMware.  “This is another proof point of VMware’s investment in its vClient initiative.  We are thrilled to work with Teradici to bring the PC-over-IP technology to VMware View customers, which will give end-users a PC-like experience even when working with graphics and multimedia intensive applications.”

“Developing a software implementation of our PC-over-IP protocol for integration into VMware View is a natural extension of our technology,” says Dan Cordingley, president and CEO, Teradici Corporation. “We are very excited to collaborate with VMware to broaden the desktop virtualization market with the scalability of both PC-over-IP software and hardware-based solutions, delivering a true PC experience to any device with the superior image quality and responsiveness end-users expect.  It’s a win-win for everyone.”

The timing of general availability of Teradici’s PC-over-IP (PCoIP) technology in VMware View products and solutions will be confirmed at a later time.

For more information on the VMware View Products and Solutions, please visit www.vmware.com/go/vmwareview

About Teradici Corporation
Teradici Corporation has developed a unique technology, called PC-over-IP, which makes network delivered computing a viable corporate computing reality. Founded in 2004 and headquartered in Burnaby, BC, Canada, Teradici for the first time enables an exceptional end user experience for datacenter-based computing. Through a combination of unique graphics algorithms, high-performance silicon processing and host workstation/server add-in cards, the company is changing how personal computers are used, deployed and managed. More information is available at www.teradici.com.
PC-over-IP and PCoIP are registered trademarks of Teradici Corporation

About VMworld 2008
VMworld 2008, now in its fifth year, with more than 14,000 attendees and 206 sponsors and exhibitors, is the must-attend event for IT professionals looking for actionable ideas, innovative products and best practices for virtualizing the enterprise – from the desktop to the datacenter.  Under the theme, "Virtually Anything is Possible," VMworld celebrates what is happening today and what the future of virtualization holds.  Keynotes are being given by Platinum Sponsors Cisco, Dell, EMC, HP, IBM, Intel, NEC, NetApp, Symantec and VMware.  VMworld features more than 285 breakout sessions and hands-on labs, led by VMware and industry professionals, and is being held September 15-18 at the Venetian in Las Vegas. 

About VMware
VMware (NYSE: VMW) is the global leader in virtualization solutions from the desktop to the datacenter.  Customers of all sizes rely on VMware to reduce capital and operating expenses, ensure business continuity, strengthen security and go green. With 2007 revenues of $1.3 billion, more than 120,000 customers and nearly 18,000 partners, VMware is one of the fastest growing public software companies. Headquartered in Palo Alto, California, VMware is majority-owned by EMC Corporation (NYSE: EMC) and on the web at www.vmware.com.
VMware is a registered trademark of VMware, Inc. in the United States and/or other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective companies.

Forward-Looking Statements
Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to new product, technology and marketing initiatives, introduction of new virtualization products, market adoption and deployment of VMware products and architecture, levels of demand for VMware products including market size and leadership, ongoing development and delivery of innovative new products and applications and capabilities of VMware products and technologies. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in consumer or information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization market, and new product and marketing initiatives by our competitors; (iv) VMware customers’ ability to develop, and to transition to, new products, (v) the uncertainty of customer acceptance of emerging technology; (vi) rapid technological and market changes in virtualization software; (vii) uncertainties in product development timelines; (viii) VMware's ability to resolve technical challenges; (ix) VMware’s relationship with EMC Corporation, and EMC’s ability to control matters requiring stockholder approval, including the election of VMware’s board members; (x) VMware's ability to protect our proprietary technology; (xi) VMware's ability to attract and retain highly qualified employees; and (xii) the impact of fluctuating currency exchange rates. These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including the report on Form 10-Q for the quarter ended June 30, 2008, which could cause actual results to vary from expectations. VMware disclaims any obligation to update any such forward-looking statements after the date of this release.