Merrill Lynch to Standardize on VMware Virtual Machine Software

VMware Server and Workstation Products to be Deployed Throughout Production Environments and on More Than 27,000 Desktops

PALO ALTO, Calif., January 6, 2003 - VMware, Inc., the global leader in virtual machine software for industry-standard systems, today announced that Merrill Lynch, one of the world's leading financial management and advisory companies, has signed an enterprise agreement to standardize on VMware's entire virtual machine product line.

VMware virtual machine products enable a single physical system to run multiple instances of fully-isolated operating environments, bringing mainframe-class capabilities to industry-standard systems. Merrill Lynch will use VMware virtual machine products across a broad array of demanding IT applications including server consolidation, software lifecycle management and application compatibility.

"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 at 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."

As a server consolidation solution, Merrill Lynch consolidated the workloads of five servers onto just one highly scalable, highly reliable enterprise-class server. Merrill Lynch not only saved money on hardware and maintenance costs, but it was also able to streamline development and test processes in its production environment.

In the area of application compatibility, Merrill Lynch was able to migrate easily to Windows XP while running mission-critical legacy applications on Windows NT safely, using VMware Workstation, which creates a stable, uniform platform for managing operating system and application updates.

"We are extremely pleased to add Merrill Lynch to our growing list of enterprise-wide deployments of our virtual machine products within the Fortune 500," said Diane Greene, president and chief executive officer of VMware. "We also look forward to working closely with Merrill Lynch as they expand the places where our products are saving them time and money."

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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