Press Release

Renton, Wash.—October 23, 2006—Etelos, a provider of open source SaaS business solutions, today announced a partnership with 3Tera, Inc., the innovator of grid and utility computing solutions, that will enable Etelos' customers to utilize the latest in scalability technologies to easily increase computing power and manage Web Applications on demand.

Companies running an Etelos Application can now choose to deploy it with hosting providers that leverage 3Tera's AppLogic grid operating system, giving them flexibility and control over their Applications and infrastructure in real-time as their business grows. Using only a Web browser, an entire server infrastructure can be remotely managed, deployed and scaled on demand to give Etelos' customers scalable, highly available hosted environments faster and more cost-effectively than previously possible.

3Tera's AppLogic platform enables hosting providers to offer utility computing services to Web 2.0 and Software-as-a-Service (SaaS) companies. The AppLogic grid operating system transforms any cluster of commodity servers into a scalable, highly available grid, allowing customers to deploy distributed Applications, such as Etelos, and visually assemble any infrastructure the Applications require. This means that businesses hosting Etelos Applications on 3Tera's grid computing system will be able to scale their Etelos servers in minutes and pay only for the resources they require.

"This is an amazingly easy and cost-effective way to build and scale deployments of Web-based Applications," Etelos President & CEO Danny Kolke said. "Etelos has always stressed the ability to scale infrastructure to meet user demand. For any savvy technologist, setting up an infrastructure to support hosting can be a challenging and time consuming process. 3Tera solves all of that. Now, if a customer's site quickly gains traffic through events such as the Digg effect, additional infrastructure can be deployed in seconds to handle the traffic."

Scalability has long been a concern for companies considering implementing Web-based Applications and functionality. As the user base grows, so does the need for additional computing and hosting resources. 3Tera solves this problem by giving companies access to virtual resources on a grid of commodity servers. Using only a browser, a business can have access to a portion of a Web server or an entire data center in minutes, and can even migrate an entire Application to another grid anywhere in the world without reconfiguring the Application.

"Etelos and 3Tera share the belief that software no longer needs to be static or centrally located, and that Web 2.0, Office 2.0 and SaaS enablers should be able to easily manage, deploy and scale their Applications without being constrained by the cost and complexity of owning and operating their own infrastructure," said Bert Armijo, Vice President, Marketing, 3Tera, Inc. "The new partnership enables Etelos customers running on demand, open source Web Applications to cost-effectively compete in today's online marketplace."


About AppLogic Grid Operating System
The AppLogic system makes it possible to remotely manage, deploy and scale not only existing Web Applications, but also the infrastructure they require, by running them on grids of commodity servers. From simple control panels to complex N-tier Applications and Internet-scale Web 2.0 services, AppLogic enables self-serve operations, including provisioning, management and scaling of Applications. AppLogic makes Applications self-contained and portable to enable the user to instantiate and scale them on demand, as well as migrate them from one grid to another. A single command can copy, configure, start, stop, export, backup or migrate an entire Application to another grid without reconfiguring the Application.


About Etelos
Etelos is open source, on-demand Web 2.0 Applications on the hosting environment that you choose. Etelos' patented technology for developing and deploying on-demand Applications is revolutionizing the world of software distribution. On the Etelos Store, developers can sell Applications, businesses can try Applications and Internet service providers can offer hosting services; in one Ecosystem with all the features of software as a service (SaaS) and all the flexibility of custom development. For more information or to view product demos, please visit http://www.etelos.com.

About 3Tera, Inc.
3Tera, Inc. is the innovator of grid and utility computing solutions that simplify the deployment, operation and scaling of online services. The company's breakthrough AppLogic grid operating system allows hosting providers to offer true utility computing that enables anyone with a browser and basic IT skills to operate dozens of servers, and hundreds of online applications, without owning and operating hardware infrastructure. 3Tera is a privately-held company headquartered in Aliso Viejo, California with R&D facilities in Silicon Valley, Israel and Eastern Europe. For more information about 3Tera and its solutions, please visit the company's Web site at http://www.3tera.com.