Record Annual Results Highlighted by Fourth Quarter Bookings Growth of 70% and a 30% Increase in Customer Base

PHILADELPHIA, PA – January 13, 2011 - PHD Virtual Technologies, pioneer and innovator in backup and recovery for virtual machines, achieved phenomenal growth in all aspects of its business during 2010.  Total bookings grew 57% in Q3 and 70% in Q4 of 2010 over the same periods in 2009.  The strong revenue growth contributed to a corporate record for annual total bookings in 2010.  The fourth quarter was also highlighted by new releases of PHD Virtual’s backup products and several key competitive wins for large scale deployments.

PHD Virtual grew its customer base by 30% through 2010 and experienced strong adoption of its products on both VMware and Citrix platforms.  In the fourth quarter, PHD released a new version of its VMware backup product supporting ESXi and ESX platforms.  Bookings for the new VMware product contributed over 25% to the record total bookings in the fourth quarter, demonstrating strong acceptance and rapid uptake.  In addition, after releasing its first Citrix XenServer data protection product in September, the company added over 200 new customers on the Citrix platform alone.   PHD continues to experience growing interest and demand for its ability to provide a single data protection solution across multiple hypervisor platforms.

The company achieved many key competitive wins in large scale enterprise deployments and managed service provider environments throughout the third and fourth quarters of 2010.  Customers stated that PHD Virtual Backup was selected for its superior scalability, performance and optimization when compared directly to competitive offerings.  PHD Virtual Backup is the only data protection solution that leverages virtualization to backup the virtual environment.  This unique approach integrates data protection directly into the virtualization infrastructure, delivering higher performance and seamless scalability while removing the need to deploy separate physical servers, additional software or agents required by other solutions.

“The business grew sharply in 2010 while setting several corporate records,” said Thomas Charlton, Chairman and CEO, PHD Virtual Technologies.  “We are excited by the rapid adoption of our new VMware ESXi and Citrix XenServer products and the success we’ve achieved in head to head competitive sales against Veeam, Quest and Symantec.   These trends, along with the strong momentum we have created, position us well for continued growth and success in 2011.”

About PHD Virtual Technologies

Delivering the highest performance and most scalable cross platform backup solution on the market and pioneer of Virtual Backup Appliances (VBAs), PHD Virtual Technologies has been transforming data protection for virtual IT environments since 2006. It award-winning data protection solution, PHD Virtual Backup for VMware, is used today by more than 2,500 enterprises worldwide to achieve unlimited scalability, high availability and cost effective backup and restore solutions for virtual machines. PHD Virtual also provides a suite of free virtualization utilities to assist with the administration and management of virtualized environments.