http://www.kace.com

Doubling of Revenue, Acquisition of Computers in Motion, Product Innovations and Industry Recognition Comprise 2008 Successes

MOUNTAIN VIEW, Calif. - January 14, 2009 - KACE, the leading systems management appliance company, today announced the results of an extraordinary 2008, with a two-fold increase in revenue over 2007 and the addition of more than 400 new customers worldwide. Even in these challenging economic times, KACE experienced its 17th straight quarter of record growth as it closed out the year.

"We are 100 percent focused on our customers' success, which directly leads to the product innovation, customer growth, and industry recognition we drove in 2008, our most successful year to date," said Rob Meinhardt, co-founder and CEO of KACE. "KACE has quickly risen to become a key player in the systems management market by providing customers with a truly comprehensive, easy-to-use, and affordable solution that allows organizations to do more with less-something especially important in today's economy."

Among the many key 2008 milestones for KACE are:

* Two-fold increase in revenue and the addition of 400 new customers worldwide;

* Seventeen quarters of consecutive growth;

Significant international growth in EMEA and APAC, adding 20 new reselling partnerships;

* Acquisition of Computers in Motion, a leader in application virtualization;

* Launch of Virtual KBOX, the industry's first virtual appliance for systems management to run on the VMware infrastructure;

* Launch of the KBOX iPhone Management Module, the first appliance-based systems management solution for Apple's iPhone;

* Release of comprehensive new power saving capabilities allowing for a more green approach in helping IT organizations reduce power consumption;

* Numerous industry awards and recognition, including: Gartner's Cool Vendor, 2008 CODiE Award for Best Systems Management Solution, EMA's Rising Systems Management Star, eWeek's Top Ten Products at the 2008 VMWorld Conference, CRN's Hottest Companies in the Midmarket Right Now, Redmond Magazine's Editors Choice, and Fast Company's Fast 50 Reader's Favorites, to name a few.

"Appliance-based systems management technologies are disruptive and are filling an important and immediate need for medium enterprise organizations," said Dennis Callaghan, enterprise software analyst at The 451 Group, a technology industry analyst company. "Companies today are not only seeking technology that fits their needs, but technology that also fits their shrinking IT budgets."

KACE saves its customers both time and money. Systems managers from medium sized enterprises are often forced to wear many hats throughout the day to work on a myriad of IT functions. KACE helps consolidate these functions by providing a single appliance for all projects, while delivering easy-to-use, comprehensive systems management that is affordable. The KBOX family of appliances fulfills all of the systems management needs of a medium enterprise, from initial computer deployment to ongoing management and retirement.

About KACE(tm)

KACE(tm) is the leading systems management appliance company. The award-winning KBOX(tm) family of appliances delivers easy-to-use, comprehensive systems management capabilities. KACE customers usually install in one day and enjoy the lowest total cost compared to software alternatives.

KACE is headquartered in Mountain View, California. To learn more about KACE and its product offerings, please visit http://www.kace.com or call 1-877-MGMT-DONE.