August 2, 2007
QLUSTERS CLOSES $10 MILLION IN SERIES C FUNDING


PALO ALTO, Calif.-- QLUSTERS CLOSES $10 MILLION IN SERIES C FUNDING

Proceeds will be used to Broaden Product Offerings and Expand Market Presence in the Open Source Virtual Systems Management and Provisioning Space

Qlusters, Inc., the leading provider of open source virtual and physical systems management and provisioning software, today announced that the company has secured $10 million in Series C funding. All of the existing investors - Benchmark Capital, Israel Seed Partners, Duff Ackerman & Goodrich and Charles River Ventures participated in the third round of funding, as well as a strategic investor from the enterprise storage space. Qlusters has raised over $33 million in total funding since the company was founded by Ofer Shoshan in 2001.

Qlusters, which introduced QRM in 2003, and openQRM in January 2006, quickly gained industry accolades as the leading open source systems management and provisioning solution. openQRM brings virtualization savings to bare metal systems by providing data center provisioning and management for both virtual, physical or hybrid virtual/physical environments. As of today, downloads of openQRM have exceeded the 100,000 milestone and has shown continual momentum.

"Qlusters is positioned to become a great company in the enterprise systems management space," said Michael Eisenberg, partner at Benchmark Capital and the first investor in Qlusters. "openQRM is one of the most mature solutions in this market and is attracting growing interest from OEMs and large enterprises."

"openQRM is the result of over 4 years of development and deployment in complex enterprise data centers," said Ofer Shoshan, founder and CEO of Qlusters. "We are currently the #1 open source systems management solution and this funding will enable us to ramp up our commercial success even faster."

About openQRM

openQRM is the premier data center provisioning and management software for physical and virtual environments. With more than 100,000 downloads since its launch in January 2006, openQRM features an open plug-in architecture that enables easy integration with existing data center applications, such as Nagios(tm), VMWare(tm), Xen(tm) and others. At the same time, it enables virtualization-like functionalities such as business continuance to be rolled out to bare metal systems, typically doubling the ROI that users have seen from virtualization alone.

Additionally, openQRM is the only data center management solution that works with Solaris, FreeBSD, Windows and Linux.

About Qlusters, Inc.

Founded in 2001, Qlusters is a leading data center technology and services provider. Qlusters' openQRM (www.openqrm.org) is the #1 open source data center management and provisioning solution on the market today and is currently used by multiple enterprise data centers worldwide to improve uptime and reduce operations costs. The company is headquartered in Palo Alto, California, with offices in New York City and Tel Aviv, Israel.

For more information visit www.qlusters.com, www.openqrm.com

Contact:
Qlusters, Inc.
John Harleman, 415-630-0900
jl@qlusters.com

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