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Xtremesoft Reports Progress on All Fronts

Xtremesoft Continues to Build Market Momentum with New Products, Customers

Woburn, Massachusetts: October 31, 2001 - Xtremesoft announced today that the company shows progress on all fronts and continues to build momentum within the marketplace. Within the past year the company shipped the first release of its new product, AppManager for BizTalk Server as well as the second major release of AppMetrics for Transactions. Furthermore, the company strengthened its executive management team with the addition of industry veteran Michael Dexter-Smith as President and CEO, and has also grown its sales and marketing operations. This in turn has been followed by substantial revenue growth from new Global 2000 customers as well as continued investment in Xtremesoft products from established accounts

The year has also seen a strengthening of the company’s relationship with Microsoft and other strategic partners such as Net IQ. Xtremesoft was one of the very first ISVs to embrace and announce support for Microsoft Operations Manager. Meanwhile, AppMetrics for Transactions is featured as a critical component for monitoring and managing the middle-tier in Microsoft’s new Internet Data Center Reference Architecture (IDCRA).

Last month, Xtremesoft was highlighted by SG Cowen as one of only five private companies to watch in the performance management sector in their latest Perspectives: Systems Management Software. Xtremesoft expects interest in the market will increase, when as the analyst already expect, Global 2000 companies adopt more widespread use of Microsoft technologies and platforms for their new, mission-critical applications. Microsoft’s share is expected to grow nearly five fold from the 10% it holds now to over 50%. Microsoft’s .NET vision and the market’s adoption of web services will herald a whole new era of computing, but it will take five to ten years to come to full fruition as customers move through technologies like MTS, COM+, BizTalk Server, and ultimately .NET.

"We are, only just now, seeing the tip of the MTS/COM+ application availability ‘iceberg’ coming out of the water, and it alone is massive!" said Dexter-Smith, "Watch for Xtremesoft to continue to leverage our existing competencies to dominate the application availability space around these platforms, and to expand them into .NET."

About Xtremesoft
Xtremesoft is the leader in maximizing application availability for MTS/COM+ and BizTalk Server (.NET) based business processes. Xtremesoft AppMetrics solutions make these applications more reliable and efficient by improving control and uptime, reducing outages and bottlenecks, and by increasing their ROI and improving customer metrics. Xtremesoft solutions are the de facto market standard and are in use today by Merrill Lynch, Skandia Banken, ADP, American Family Insurance, IDG, Schwan's Sales Enterprises, Microsoft, and GMAC, among others. Contact Xtremesoft at 781.937.3800 or visit our website at www.xtremesoft.comfor more information.


David Vins
Director, Marketing Communications
Xtremesoft, Inc.
+1 (781) 759-1234

Xtremesoft and AppMetrics are trademarks of Xtremesoft Inc. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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