Start-Up NextIO Secures $18.8 Million

NextIO, Inc., in I/O virtualization solutions, has closed an $18.8 million
Series C funding round. Adams Capital Management and Crescendo Ventures led the round with participation
from other inside investors as well as two new strategic investors. The funding will be used by
NextIO to further expand its development team and sales channels in preparation for the upcoming
release of several virtualization system products in 2008. To date, NextIO has raised nearly $40
million in funding.

"The demand for technologies that drive server virtualization will continue to grow in the
coming years," said Wayne Cantwell of Crescendo Ventures. "NextIO is a pioneer in developing new,
more powerful virtualized I/O solutions designed to support all I/O technologies and greatly simplify
server management."

Founded in January 2003, NextIO is the recognized leader in virtualized I/O system solutions for OEMs
and was the first private company invited to participate in the PCI-SIG.s I/O Virtualization Working
Group. NextIO has developed a number of system-level solutions for enterprise-class servers. They
include PCI Express Virtualization systems for blade and rack mount servers. These system solutions
speed development and deployment of shared I/O in enterprise servers.

"Virtualization of hardware in a server environment continues to lower costs, simplify deployment
and allow management features previously not available," said K.C. Murphy, CEO of NextIO.
"The NextIO technology and product offerings complement the software virtualization
developments seen throughout the industry. Our production-worthy silicon, complete management
software, as well as stand-alone systems make NextIO the first company to bring this level
of virtualization to market."

NextIO, Inc.