40% Y/Y Quarterly Revenue Growth for PHD Virtual

PHD Virtual Technologies,
Inc., in virtual machine backup and recovery and in virtualization
monitoring solutions, has achieved its 9th consecutive quarter of record
revenue highlighting a 40% year over year growth rate compared to this
same quarter in 2011.

The company added over 300 new customers during the quarter.

Worldwide customer adoptions of the recently released PHD Virtual Backup
6.0 and PHD Virtual Monitor 10.3 solutions as well as a new global
partner program helped drive revenue. In addition, PHD expanded its
executive team and board of directors with the addition of a new CMO,
Steve Kahan; and new board member, Kevin M. Klausmeyer.

"We are on an unprecedented growth curve and are delivering on our
customer promises for easier, faster and more seamless virtual backup
and monitoring solutions to help users get the most value out of their
Virtual IT environments," said James Legg, CEO of PHD "We
continue to expand our focus on sales and marketing and have hired a new
CMO and brought on a new Board Member, both of whom are industry
veterans and come to PHD Virtual with a wealth of experience with
high-growth, software solutions companies."

PHD recently launched its Virtual Backup 6.0, which features faster
backup and replication with optimized performance against any type of
storage target, including cloud gateway devices. Customers gain the
advantages of application aware backups and encrypted data protection
along with functionality that helps demonstrate compliance with policies
and regulations to pass internal and external security audits.

Virtual Backup 6.0 also incorporates more savvy recovery methods that
minimize downtime for even the smallest customers that cannot leverage
replication.

According to customer Marek Friedl of Hardt Equipment, "We
have so many tasks on our plates that we can’t afford to spend much
time managing backups. PHD Virtual makes the whole process a piece of
cake. We are really impressed with the performance and de-duplication. I
don’t know how they put so much power into such an easy-to-use product,
but they did."

 Steve
Kahan serves as chief marketing officer for PHD Virtual and is
responsible for global campaign marketing, product management, partner
marketing, branding and marketing communications, as well as public and
analyst relations. He has more than twenty-five years of experience
building high energy, high commitment organizations that produce
breakthrough revenue growth.

Kevin Klausmeyer joins the board of directors and served on the board of
Quest Software, an enterprise software solutions company, from July
2003 to September 2012. He most recently served on the Special Committee
of the Quest Software board which oversaw a process to maximize
shareholder value. This process resulted in Dell’s acquisition of the
company on September 25, 2012 at a 40% premium.