Press Release

Compute Pools Make Utility Computing a Viable, Cost-effective Technology

MOUNTAIN VIEW, California - October 20, 2004 - Azul Systems, Inc. today announced a partnership with ITOCHU TECHNO-SCIENCE Corporation (CTC), a division of ITOCHU, to deliver network attached processing, a core utility computing technology, to customers in Japan. In addition, CTC is investing in Azul Systems. CTC will sell and support Azul Systems™ compute pools, an innovative solution that delivers unbound compute resources for Java™ and J2EE™ platform-based applications. Made up of compute appliances, compute pools enable existing applications to tap into massive amounts of compute resources without requiring any changes to applications or existing environments.

Network attached processing will increase efficiency, eliminate complexity and drive down costs in the data center. A core technology in the CTC utility computing strategy, compute appliances will eliminate the need for capacity planning at the individual application level. CTC is one of the largest resellers of innovative technologies in Japan with customers that range across vertical markets including finance, marketing, manufacturing, transportation, communication, medical, service, education and government.

“CTC has a long history in Japan of understanding customers’ enterprise-class datacenter needs and objectives as well as anticipating forward-looking solutions that foster competitive advantage,” said Matt McLaughlin, vice president worldwide field operations for Azul Systems. “We are confident that our relationship with CTC will further accelerate the adoption of the Java platform in this unique market and drive global migration towards network attached processing.”

“CTC is committed to meeting the growing demand among our customers for true utility computing solutions for Java and J2EE platform-based application deployments,” said Yasuhide Masanishi, chief technology officer for CTC.“ The Azul team has developed a truly innovative product that makes on-demand compute a viable solution that will deliver immediate benefits to our customers.”

Network attached processing will be delivered via three unique technologies:

• Mountable pools of compute for Java and J2EE platform-based applications enabling any application to draw computing resources from the same massive enterprise resource
  
• Flexible, policy-based management software provides comprehensive command and control of compute pool resources

• Transparent virtual machine proxy technology redirects applications to the compute pool without any changes or modifications to applications or the existing infrastructure configuration

Field trials will begin in Japan starting later this year.

About CTC
CTC imports state-of-the-art computer systems and software from all over the world, especially from the United States, and distributes them in Japan. CTC supports most market segments including finance, marketing, manufacturing, transportation, communication, medical, service, education and government. CTC operates with more than seventy service/support centers in Japan offering 7x24 support services.

About Azul Systems, Inc.
Azul Systems is introducing the industry's first network attached processing solution designed to unbound compute resources for Java™ and J2EE™ platform-based enterprise applications. Azul compute appliances eliminate capacity planning at the application level and much of the cost and complexity associated with the conventional delivery of computing resources. More information on Azul Systems can be found at www.azulsystems.com.

Legal Notices
Azul Systems, Azul, and the Azul arch logo are trademarks of Azul Systems, Inc. in the United States and other countries. Microsoft is either a registered trademark or trademark of Microsoft Corporation in the United States and other countries. Java and all Java based trademarks and logos are trademarks or registered trademarks of Sun Microsystems, Inc. in the United States and other countries. Other marks are the property of their respective owners and are used here only for identification purposes.

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