35% Y/Y Growth for PHD Virtual

PHD Virtual Technologies, Inc.
announced its 13th consecutive record quarter highlighting a 35% Y/Y growth and
propulsion into the leader position of data protection and recovery assurance
solutions.

"Our product portfolio and customer list continues to grow rapidly.
Bringing customers the virtual backup and recovery solutions and support they
need at prices they can afford is our number one goal," said James Legg,
CEO, PHD Virtual. "Our orders this quarter were very strong and reflective
of that mission resulting in another record quarter of growth. We are
encouraged and excited by the market acceptance and industry awards received as
of late."

Milestones this quarter include the following:

• Recorded 35% Y/Y revenue growth in bookings
• 315 new customers signed and now has over 6,000 customers
• Over 500 licenses of CloudHook, virtual backup to the cloud, sold in first 90
  days
• 260% Y/Y growth in channel deal registrations
• More than 3,750 products downloaded
• New product, ReliableDR 3.1,from VirtualSharp acquisition introduced
• Named to CRN Virtualization 50 List
• Finalist in Network Products Group Best Products Awards

With the acquisition of VirtualSharp last quarter,
PHD Virtual now delivers transformational technology for virtual backup and DR
assurance. ReliableDR 3.1 was the first product released as a result of this
acquisition. It reduces the risks and costs of recovery failure by providing
ironclad assurance of granular data, application, business services, and
ensuring site-wide recovery occurs within SLAs.

"PHD Virtual’s focus
and assertiveness in the backup and disaster recovery assurance market are
certainly paying off as more and more customers are selecting PHD
Virtual," said Ken Clipperton, senior analyst, DCIG, Inc. "The
combination of PHD Virtual Backup with ReliableDR is evidently like peanut
butter and chocolate-good individually, even better together."