VMware and Inspur Announce OEM Agreement to Further Accelerate Adoption of Virtualization in China

BEIJING, China, June 25, 2008—VMware, Inc. (NYSE: VMW) and Inspur today announced an original equipment manufacturer (OEM) agreement to further accelerate the adoption of VMware virtualization in China. Starting today, Inspur is selling, distributing and supporting VMware's datacenter virtualization and management suite, VMware Infrastructure, on Inspur server systems. The two companies will collaborate on market development, product sales, professional training and customer acquisition as well as technical services. The relationship enables both companies to develop virtualization solutions that effectively meet China's market demands, leveraging the performance and scalability of Inspur servers with VMware virtualization to reduce capital and operating expenses, improve business continuity, strengthen security and reduce energy consumption.

“China’s rapid economic growth and increased focus on conserving energy have spurred the need for customers to adopt the best solutions for meeting business demands while enabling a green datacenter,” said Diane Greene, president and chief executive officer of VMware. “VMware virtualization addresses this need with solutions that not only consolidate servers, but also jump ahead to the next stages of virtualization: aggregating IT resources in virtualized pools and automating the management of these resources. VMware virtualization combined with Inspur’s expertise in local customer requirements offers a way to quickly cut operating and capital costs by as much as half, deliver applications faster and more reliably in virtual machines, improve information security, and run a more flexible and eco-friendly IT environment.”

“Being environmentally friendly is essential to the sustainable development of an economic society, and Inspur is committed to developing and innovating energy-saving server products,” said Sun Pishu, chairman and chief executive officer of Inspur Group. “The collaboration between two strong companies uniquely combines Inspur’s knowledge of the Chinese market and VMware’s virtualization platform, accelerating virtualization adoption in China and demonstrating great significance to green IT.”

“Virtualization is maturing and will be widely adopted in the future. However, currently most customers in China do not have enough virtualization deployment experience, so it is critical to make virtualization more broadly available to help customers bridge the gap from technology to adoption,” said Cheng Chuanlong, vice president of Inspur Group. “Inspur bridges this gap, and the collaboration between VMware and Inspur will help customers cross the threshold to realizing the benefits of virtualization.”

Customers can now purchase Inspur servers bundled with VMware Infrastructure 3, provided with full support from Inspur. The Inspur solutions based on VMware virtualization provide the capabilities for server consolidation, automatic load balancing, business continuity, power management and the ability to move live virtual machines across physical machines to minimize service interruption. VMware Infrastructure 3 is also compatible with VMware’s desktop virtualization and management solutions, as well as VMware’s suite of application and infrastructure management solutions for the virtual datacenter.

Availability

VMware Infrastructure 3 is available on Inspur servers immediately, backed by full support from Inspur.

About Inspur Servers

Inspur Servers are the No. 1 brand in China’s server industry focusing on customer application and is committed to bringing advanced technology to IT infrastructure. Inspur servers have been widely adopted across different industries such as finance, telecommunications, education, scientific research, government, transportation, and manufacturing. Inspur has ranked No. 1 in terms of sales, revenue, and market share in China for 12 consecutive years. For more information, please visit www.inspur.com.

About VMware, Inc.

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 100,000 customers and nearly 14,000 partners, VMware is one of the fastest growing public software companies. Based in Palo Alto, California, VMware is majority-owned by EMC Corporation (NYSE: EMC) and on the web at www.vmware.com.

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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 adoption of VMware products by end users in China. 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) our 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) changes to product development timelines; (viii) our ability to protect our proprietary technology; (ix) our ability to attract and retain highly qualified employees; and (x) 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 fiscal year ended March 31, 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.